Indemnification and how it applies to mortgage trust laundering of mortgages

Indemnification of mortgages is a topic which is implicated when homeowners seek to refinance or sell their homes or the mortgage notes associated with their homes. Indemnification happens when one party tells another party: I will indemnify you from harm, meaning I will carry the weight of any legal consequences, and if you get an unfavorable legal consequence, such as an adverse Court ruling or judgment, I will in effect pick up the tab, and see that you are held harmless.  Securitizers of mortgages and their servicers and auction sale trustees often make it sound as if the hypothetical of another party trying to enforce their sketchy mortgage notes is just a misplaced notion, and that in any case they would argue (particularly in court proceedings or the pleadings related to same), they the institutional trust or serivcer could or would indemnify borrowers from a random third-party coming onto the scene to try and collect on the note. Discussing a California appeal case today shooting down that whole scenario, showing how indemnification may not be enough in these situations.