Foreclosure Defense Florida

MERS and the US Mortgage Meltdown- Why Won’t Officials Take Notice?

Earlier this week I reported on a series of emails that detailed how Wall Street Fat Cats were licking their sticky fingers as the US and in fact world economies were on the brink of collapse.   Now newspapers are reporting what myself and others have been saying for many, many months….

THE WALL STREET FAT CATS, ALONG WITH AN INEPT OR UNWILLING REGULATORY AGENCIES, ORCHESTRATED THE COLLAPSE OF THE US HOUSING MARKET AND WORLD ECONOMY AND MADE BILLIONS AS A RESULT.

Next, because they were deemed “Too big to fail”, you and I stepped in and provided the architects of the financial foolishness with bajillion dollar bailouts…under current tax and federal policies, we will continue to pay bajillions of dollars and tax and other benefits for years to come.

I AGAIN ASK, WHY ARE OUR CIRCUIT COURT JUDGES UNMOVED BY ALL THIS?

WHY DO THEY CONTINUE TO GRANT FORECLOSURE TO PARTIES THAT HAVE ENGAGED IN IMPROPER CONDUCT?

GIVEN THE GROWING KNOWLEDGE OF THE IMPROPER PRACTICE OF LENDERS, LAW FIRMS AND ALL PARTIES INVOLVED…WHY WON’T JUDGES JUST TAKE A DEEP BREATH AND STOP GRANTING FORECLOSURES UNTIL WE CAN SORT ALL THIS OUT?

Now newspapers are beginning to report on a law review article I first published months ago which points out the real problems caused by MERS in the system….here is one of the first, but many more newspapers and outlets will pick this article up.

“This is one of the buried, yet-to-emerge bombs in the whole mortgage crisis,” said Christopher Peterson, a University of Utah law professor and author of the first scholarly analysis of MERS and its underpinnings, to be published this spring in the University of Cincinnati Law Review . “This has the potential to fundamentally affect the trajectory of our recovery.”

‘A tax evasion broker’ » MERS officials vigorously disagree, but Peterson contends the MERS system has violated a deep-seated principle of American law — transparency in land-ownership transactions — by effectively removing much of that information from the public record. In so doing, Peterson says, MERS also has served as “a tax evasion broker,” denying counties millions of dollars in recording fees — revenue that might otherwise have funded essential public services.   And now, by allowing actual lenders to pursue foreclosures under MERS’ name instead of their own, Peterson says the company is acting as a “foreclosure doppelganger.”

The full text of the article (  lawreview ) can be found here in this post.   Read it now so you know what news media is talking about later.

THE QUESTION I ASK IS….WHY ARE OUR LEADERS FROM ACROSS THE COUNTRY ALLOWING BIG BUSINESSES TO AVOID BAJILLIONS OF DOLLARS IN TAX REVENUE?

 

7 Comments

  • Greg Clark says:

    No credible argument in support of the legal viability of the MERS configured mortgage has been published since the Landmark v. Kesler case came out of the Supreme Court of Kansas. This case held, in essence, that MERS rights under the mortgage were so insignificant that it was not even entitled to receive notice of a foreclosure action that wiped out whatever interests it held.

    As a title searcher, examiner, and insurance/closing agent wanting to insure new buyers and lenders who are trying to reenter the housing market I cannot ignore this.

    Though MERS is the ” holder” of over 50 million mortgages nationwide they do not own and hold the debt obligation, the ” promissory note” which must be paid off to clear the land title record for the new investor to get clear title. In fact I cannot payoff MERS at the closing table; they will not accept payoff funds as they are not the owner of the debt.

    Yet they hold the mortgage, sounds crazy, I know.

    Since MERS will not accept payoff funds to clear the mortgage from title, I have to try and find out who actually owns the debt. Unfortunately, MERS controls this information in it’s private ” electronic registry data base”. I say unfortunate because this information used to be contained neutrally, for all citizens of the realm, in our local county deed registration public record. I could always go down to the courthouse and search complete title records to determine who owns what and who owes what and to whom.

    But since MERS name shows up on the vast majority of first mortgage liens made during the mortgage/housing bubble and MERS does not share with the public record any notice of sale of your mortgage from your original lender to who owns it now – that notice of sale or transfer of your loan (an assignment) would cost about $10 to record ““ I am on a bit of a fools errand looking for a needle in a stack of identical needles. You see, most of these loans were sold over and over again. (by the way that 10 bucks a pop could have filled a pothole or two in your local government’s budget).

    No, instead I have to go find the invisible lender who actually owns and holds that debt.

    So I must go before the great MERS on bended knee and ask that they grant me the information I seek. Worse still is that I have to trust it as accurate, without any neutral public record verification as a backup.

    And if I pay off the wrong debt owner because of inaccurate information? I’ll have to keep paying it off until I get it right.

    MERS is a private, closely held corporation setup and owned by key members of the financial industry. No statute or federal law was ever passed giving MERS such control or power over our local public real estate records.

  • Jennifer says:

    We were back in Court today—fourth order from court fo Stern to do a loan mod. We brought all info concerning MERS to the Judge’s attention that they cannot be the “Note holder” per our fixed adjustable rate mortgage agreement. MERS, as you said before, may be the “nominee”, but that does not authorize them any interest pertaining to the mortgage instrument itself. Nonetheless, mediation scheduled for next Friday. However, the good news is the Judge granted my request to do a loan modification analysis before signing an agreement.
    Let me know if you are interested in helping us bust this thing wide open? She also ordered to vacate the certificate of title that was issued to Deutsche by mistake of the clerk. That’s where it’s at folks.

  • I add the matt weider law blog to https://www.swarmthebanks.com

    The goal of Swarm The banks is get a thousand volunteers willing to swarm banks and other financial institutions that are not doing the right thing when it is obvious what the right thing is.

    Swarm the banks will follow the letters being left on Shame the Banks, and than at the appropriate time, ask volunteers to begin civilly calling the coporate office of the bank or loan institution regarding the loan in question.

    The bank or loan institution will be given an opportunity to respond before they are swarmed by phone.

  • I meant to write The Goal of Swarm the Banks is to get a thousand PHONE volunteers willing to swarm the banks and other financial institutions that are not doing the right thing when it is obvious what the right thing is.

  • This is the letter that MERS submitted to the Salt Lake Tribune. We have not yet learned whether they will publish this letter:

    ” The Tribune’s April 24 article on MERS was filled with errors and missing facts””facts that we had provided to the writer before the article was published.

    Contrary to the article’s assertion, MERS does not remove land ownership information from public records because that information was never there to begin with. MERS fills an information void that the county records have never provided. We track the changes in servicing rights and note ownership, and we have helped numerous homeowners find their note owner. In fact, homeowners can contact their mortgage company through MERS and MERS can connect them with the note owner of their mortgage loan when the owner has agreed to be disclosed.

    The borrower makes MERS the mortgagee with 100% transparency because they sign a document at closing acknowledging that MERS is the mortgagee. MERS also has a rule requiring that the note be presented at foreclosure.

    Finally, the author failed to disclose that the article’s chief MERS critic, Christopher Peterson, is currently employed as a witness against MERS in a pending legal matter. This article provided a disservice to Tribune readers and they deserve better.”

  • Mina says:

    People need and alternative to bank financing. It’s impossible to shop for a mortgage because they never tell you the terms until you’re at the closing table.
    Even people who have jobs and reasonable mortgages should be alarmed at how the 1% are manipulating the economy to put us all under water. The more they can destroy alternatives, the more money they make.
    I want us to start our own bank and offer alternative financing.

  • Mina says:

    I mean now that we know the banks are crooks where do we go for financing? Where does an ordinary person get honest help? How can you buy a home without risking all your savings to some bank scam.

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