MERS Enters Self-Preservation Mode, Issues Press Release To “Clarify” Its Role In Foreclosure Fraud

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FailHousing MarketLayeringMortgage IndustryTransparency

As more people realize that the fake title transfer aspect of foreclosure fraud is just the tip of the iceberg which runs, via MERS (Mortgage Electronic Registration Systems) conduits all the way to the core of the securitization system, and thus $10 trillion in first level debt (and who knows how much in 3rd and 4th level layering of debt on top of this: think CDO-squared and cubed), we expect an increasing number of denials from the enablers in the explosion of securitization over the past ten years. Such as MERS. Which is why it is not surprising that late last night, it was precisely MERS who not only acknowledged for the first time its involvement in this whole fiasco (by a press release and a “fact and rebuttal” session), but has made it all too clear just how deep the problem truly runs. We would like to highlight just how very alike is the defense prepared by the High Frequency Signing Lobby to that by the High Frequency Traders out there: it is all just technological advancement, and if you want to blame it on someone, blame it on Intel and their fast fast chips: “What we’re seeing now is that theforeclosure process itself was not designed to withstand the extraordinaryvolume of foreclosures that the mortgage industry and local governments must nowhandle.” Obviously the volume only exploded once failed systems such as MERS appeared on the scene: it is precisely in this aspect that MERS served as an enabling catalyst to let loose the wave of exponential re-re-securitization. It continues: “The MERS process oftracking mortgages and holding title provides clarity, transparency andefficiency to the housing finance system.” And here is where MERS basically puts the ball back in the corrupt legal system’s court: “We are committed to continuallyensuring that everyone who has responsibilities in the mortgage and foreclosureprocess follows local and state laws, as well as our own training and rules.” Because why not blame the entire judicial system, when one could just acknowledge the burden of having failed at doing their own job properly… One thing is certain: someone is going down for this biggest snafu in the history of mortgages/securitization.

Follows the full MERS press release:

Statement by CEO of Mortgage Electronic Registration Systems (MERS)RESTON, Va.–(BUSINESS WIRE)–

October 09, 2010

Mortgage Electronic Registration Systems (MERS) Chief Executive Officer R.K.Arnold today issued the following statement regarding the organization andclarifying certain aspects of its operations:

“MERS is one important component of the complex infrastructure of America’shousing finance system. Billions of dollars of mortgage money flow through thefinancial system every year. It takes many, often-unseen mechanical processes toproperly get those funds into the hands of qualified homebuyers.

Technology designed to reduce paperwork has a very positive effect on familiesand communities. They may not see it, but these things save money and time,creating reliability and stability in the system. That’s important to keep themortgage funds flowing to the consumers who need it. [ZH: odd how almost identical this defense is to the one prepared by the HFT lobby. Perhaps, it should now be called High Frequency Signing and Trading?]

With millions of Americans facing foreclosure, every element of the housingfinance system is under tremendous strain. What we’re seeing now is that theforeclosure process itself was not designed to withstand the extraordinaryvolume of foreclosures that the mortgage industry and local governments must nowhandle.

MERS helps the mortgage finance process work better. The MERS process oftracking mortgages and holding title provides clarity, transparency andefficiency to the housing finance system. We are committed to continuallyensuring that everyone who has responsibilities in the mortgage and foreclosureprocess follows local and state laws, as well as our own training and rules.”

Facts about MERS

FACT: Courts have ruled in favor of MERS in many lawsuits, upholding MERSlegal interest as the mortgagee and the right to foreclose.

This legal right springs from two important facts:

1) MERS holds legal title to a mortgage as an agent for the owner of the loan2) MERS can become the holder of the promissory note when the owner of the loanchooses to make MERS the holder of the note with the right to enforce if themortgage loan goes into default.

MERS does not authorize anyone to represent it in a foreclosure unless boththe mortgage and the note are in MERS possession. In some cases where courtshave found against MERS, those cases have hinged on other procedural defects orimproper presentation of MERS’s legal interests and rights. Citations can befound at the end of this document.*

FACT: MERS does not create a defect in the mortgage or deed of trust

Claims that MERS disrupts or creates a defect in the mortgage or deed of trustare not supported by fact or legal precedents. This is often used as a tactic bylawyers to delay or prevent the foreclosure. The mortgage lien is granted toMERS by the borrower and the seller and that is what makes MERS the mortgagee.The role of mortgagee is legal and binding and confers to MERS certain legalrights and responsibilities.

FACT: The trail of ownership does not change because of MERS

MERS does not remove, omit, or otherwise fail to report land ownershipinformation from public records. Parties are put on notice that MERS is themortgagee and notifications by third parties can be sent to MERS. Mortgages anddeeds of trust still get recorded in the land records.

The MERS System tracks the changes in servicing rights and beneficialownership. No legal interests are transferred on the MERS System, includingservicing and ownership. In fact, MERS is the only publicly availablecomprehensive source for note ownership.

While this information is tracked through the MERS System, the paperwork stillexists to prove actual legal transfers still occurred. No mortgage ownershipdocuments have disappeared because loans were registered on the MERS System.These documents exist now as they have before MERS was created. The only piecesof paper that have been eliminated are assignments between servicing companiesbecause such assignments become unnecessary when MERS holds the mortgage lienfor the owner of the note.

FACT: MERS did not cause mortgage securitization

MERS was created as a means to keep better track of the mortgage servicing andbeneficial rights as loans were getting bought and sold at a high rate duringthe late 1990s.

At the height of the housing market, low interest rates prompted somehomeowners to refinance once, twice, even three times in the space of months.Banks were originating loans at more than double their usual rate. Assignments — the document that names the holder of the legal title to the lien — primarilybetween servicing companies, were piling up in county land record offices,awaiting recording. Many times the loans were getting refinanced before theassignments could get recorded on the old loan. The delay prevented lienreleases from getting recorded in a timely manner, leaving clouds on title.

MERS was created to provide clarity, transparency and efficiency by trackingthe changes in servicing rights and beneficial ownership interests. It was notcreated to enable faster securitization. MERS is the only publicly availablesource of comprehensive information for the servicing and ownership of the morethan 64 million loans registered on the system. The Mortgage IdentificationNumber (MIN), created by MERS, is similar in function to a motor vehicle VIN,which keeps track of these loans. Without MERS the current mortgage crisis wouldbe even worse.

FACT: Lenders cannot “hide” behind MERS

MERS is the only comprehensive, publicly available source of the servicing andownership of more than 64 million loans in the United States. If a homeownerneeds to identify the servicer or investor of their loan, and it is registeredin MERS, they can be helped through the MERS website or via toll-free number at888-679-6377.

FACT: MERS fully complies with recording statutes

The purpose of recording laws is to show that a lien exists, which protectsthe mortgagee and any bona fide purchasers. When MERS is the mortgagee, themortgage or deed of trust is recorded, and all recording fees are paid.

*NOTABLE LEGAL VICTORIES:

a. IN RE Mortgage Electronic Registration Systems (MERS) Litigation, a multi-district litigation case in federal court in Arizona who issued a favorableopinion, stating that “The MERS System is not fraudulent, and MERS has notcommitted any fraud.”

b. IN RE Tucker (9/20/2010) where a Missouri bankruptcy judge found that thelanguage of the deed of trust clearly authorizes MERS to act on behalf of thelender in serving as the legal title holder.

c. Mortgage Electronic Registration Systems, Inc. v. Bellistri, 2010 WL2720802 (E.D. Mo. 2010), where the court held that Bellistri’s failure toprovide notice to MERS violated MERS’ constitutional due process rights.

 

 

And after that gratuitous and irrelevant listing of notable legal victories, we now are certain a a far more notable legal loss is just around the corner.

h/t Pam

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by CheapKUNGFU
on Sun, 10/10/2010 – 09:52
#639233

ALl your ‘notable legal victories’ are belong to us, make your MERS…

 

Login or register to post comments by Fish Gone Bad
on Sun, 10/10/2010 – 12:30
#639474

“Hi, I’m from MERS and I am here to help you.”

I will have to add that to list of big lies.  For those of you who may have forgotten them…

1.  I’m from the government and here to help you.

2.  Just this once …

3.  I promise to pull out

4.  It is not a cold sore

Login or register to post comments by BaboonAss
on Sun, 10/10/2010 – 09:55
#639235

CYA, bitchez.

Login or register to post comments by Problem Is
on Sun, 10/10/2010 – 12:34
#639477

MERS,  RIP bitchez…

     BTW: Nice ass…

Login or register to post comments by ILikeBoats
on Sun, 10/10/2010 – 09:56
#639238

The MERS System tracks the changes in servicing rights and beneficial ownership. No legal interests are transferred on the MERS System, including servicing and ownership. In fact, MERS is the only publicly available comprehensive source for note ownership.

What they are trying to do here is tap-dance around the issues that ZH and others have raised. They are saying that they track changes (record changes) in beneficial ownership, but not the legal interest(s) in ownership. I am not sure if this kind of mental gymnastics will serve them well, or if they are correct in this (I think they are not correct and are trying to have it both ways).

Login or register to post comments by Tyler Durden
on Sun, 10/10/2010 – 10:00
#639242

We have a bingo. However, by doing this they send the ball even deeper into the mortgage servicers’ court. And last we checked most banks haven’t provided a formal explanation for why foreclosures are halted aside from “letting everything normalize for a while.” They are next and last to deny any guilt… Then the class action lobby puts on the riot gear.

Login or register to post comments by Rogerwilco
on Sun, 10/10/2010 – 10:51
#639309

The banks have a plan, but they are stalling until Congress convenes a lame-duck session in a few weeks. I’m guessing the “resolution” will involve some mergers and happy talk to cover the transfer of all responsibilities to the federal government, and of course blanket amnesty for any past sins. States will get some cash as a settlement for all the pending lawsuits and told to “Don’t go away mad, just go away.”

This deflationary event will be sold as a mercy killing, something that our great nation, ever so reluctantly, has to do…now move along proles, go shopping for Christmas!

Login or register to post comments by Careless Whisper
on Sun, 10/10/2010 – 11:06
#639329

“The MERS process of tracking mortgages and holding title provides clarity, transparency and efficiency to the housing finance system.”

how does holding title “as nominee” provide clarity and transparency? a nominee has no financial interest in anything. it is just total bullshit.

Login or register to post comments by Oligarchs Gone Wild
on Sun, 10/10/2010 – 11:30
#639366

Click first for background music – http://www.youtube.com/watch?v=NoBFhdeR9PE

What’s the more egregious offense to the rule of law here? 

Stopping millions of foreclosures to reduce housing supply thereby making this the 97th attempt by Oligarchs in two years to fraudulently set a floor on home prices. OR  -Screwing domestic and foreign MBS holders including cops and fire fighters in pension funds, retirement plans and all around anyone who believed the ratings agencies or pimps hawking the toxic stuff marked up as ‘the shit’. OR -Screwing taxpayers by enslaving generations upon generations to pay for the Oligarchs of today whether found on wall street or the government?  OR – Screwing the blue collar laborer out of every fucking penny he has to his poor family just so he can partake in the ‘American Dream’.  OR – Changing accounting laws so that Oligarchs don’t have to allow the free market to set their true asset prices.  OR -Central Banks that are as transparent as a black leather bag tied over someones head yet have full control over the entire debt system of the world?Privileged computers for privileged Oligarchs on privileged networks can front run every trade in the world and manipulate asset prices of just about anything in the time it takes your synapse to talk to it’s neighbor.

 

The rule of law is an ancient ideal, and was discussed by Ancient Greek philosophers such as Plato and Aristotle around 350 BC. Plato wrote:

 

Where the law is subject to some other authority and has none of its own, the collapse of the state, in my view, is not far off; but if law is the master of the government and the government is its slave, then the situation is full of promise and men enjoy all the blessings that the gods shower on a state.

The law is no longer the master of government.  Law is merely a tool of the Oligarchs to adjust the levers so that they can keep their heroin fix flowing all in the name of peace for all.

 

finem respice indeed

 

Login or register to post comments by Everyman
on Sun, 10/10/2010 – 11:32
#639373

OH!  I hate your post, because it is so true.

Good Post.  Talk about “things I wish I did not know”.

Login or register to post comments by Careless Whisper
on Sun, 10/10/2010 – 12:22
#639450

from the MERS website:

MERS acts as nominee in the county land records for the lender and servicer. Any loan registered on the MERS® System is inoculated against future assignments because MERS remains the nominal mortgagee no matter how many times servicing is traded.

oh really……..

there are fine laws on the books of each state now. unfortunately the criminal banksters will try and have them changed or overruled by some new federal law to benefit their criminal activity.

but let’s take a look at who owns MERS:

http://www.mersinc.org/about/shareholders.aspx

 

Login or register to post comments by Cistercian
on Sun, 10/10/2010 – 12:28
#639467

Strange, that looks like a  list of the big criminals involved in the securitization scam!

Login or register to post comments by Careless Whisper
on Sun, 10/10/2010 – 12:49
#639503

indeed.

wasn’t MERS designed by the criminal banksters for the purpose of trading CDOs back and forth amongst themselves for the purpose of generating fake profits?

 

Login or register to post comments by Miles Kendig
on Sun, 10/10/2010 – 12:19
#639454

Then the class action lobby puts on the riot gear.

Then the glory of judicial exclusion will become even more apparent to society at large.  Dangerous game attempting to garner fear based governance with a blade that can cut so close to its wielders bone. 

Login or register to post comments by greyghost
on Sun, 10/10/2010 – 11:10
#639339

wife and i refinanced back in jan. got a letter from “mers” telling us how very very legal everything they [mers] do is above board. i have been following this crap for a couple of years and was shocked by how “mers” was telling us not to bother with lawyers or such…..”mers” has our best interest at heart….ouch! saying it’s legal makes it legal doesn’t it…lol

Login or register to post comments by Oligarchs Gone Wild
on Sun, 10/10/2010 – 11:38
#639382

Greyghost – if you or someone has one of those letters, now would be a great time to scan it and put it up on a photo website with a link.

Login or register to post comments by anonnn
on Sun, 10/10/2010 – 12:14
#639445

…they track changes (record changes) in beneficial ownership…

Just a clever-stroke. More accurately:

“They track apparent/alleged/unaudited changes…”. I.e. just opinions/rumor/hearsay.

IANAL, but my understanding of property-rights is: Only one who has been assigned, by legal document, as the noteholder has the right to foreclose.

 Therefore, let MERS produce the document that it is the assignee…or is representing  the assignee. Such can only be demonstrated by producing the assignment documentation that shows the timeline chain of latest assignee down to present time.

The chain can be so long that “allonge” [additional signature sheets] must be added and produced.

The lawyers, who schemed MERS into existence, created muddling obscurities to fog their bypass of settled law. MERS enabled much of the fraud to blossom.

 

Login or register to post comments by Bob
on Sun, 10/10/2010 – 12:19
#639453

And who set up and owns MERS again?  What a transparent criminal circle jerk.

Login or register to post comments by belogical
on Sun, 10/10/2010 – 10:06
#639251

I see, reliability and cost saving for the consumer. That’s what this is about. It’s not we’re making money hand over fist and screw the details. It’s for us they cut these corners. 

Trillions in loses, not to mention the human tragedy and even lose of life(which has happened).

This guy belongs in jail, if not for crimes, for being stupid to walk around

Login or register to post comments by 99er
on Sun, 10/10/2010 – 10:07
#639253

Paging Mr. Black. Mr. William J. Black…to the nearest white telephone, please. Your party is looking for you.

Login or register to post comments by Not Sure
on Sun, 10/10/2010 – 10:17
#639256

Do you think we will see a release from the DocX (Lender Processing Services) guys in Atlanta? Off topic here; but, is the pocket veto that was mentioned earlier in the week still in place?

Login or register to post comments by Iam Rich
on Sun, 10/10/2010 – 10:35
#639290

According to KD, BO has definitively vetoed and returned to Congress

http://market-ticker.org/akcs-www?post=168627

Login or register to post comments by Oligarchs Gone Wild
on Sun, 10/10/2010 – 11:48
#639403

How long will it take before it’s “edited” and passed back and signed?  That way BO will be able to say “I didn’t sign it because it was wrong, they fixed it, and now I’ll sign it”.

Here’s the cycle:

Step 1 – Gov:  It’s like healthcare and everything else.   First pitch – the trial balloon to the people as complete socialism, total nationalization, fire and brimstone.

Step 2 – People: Angry populous! Argggh!

Step 3 – Gov:  OK OK, we beat it back to like 50% of the stuff you rioted about, so shut the fuck up and sit down.

Step 4 – People:  Phew, that was a close one, we almost had fire and brimstone again, luckily all we got was a partial fucking.  Not enough to do anything about though, back to Farmville.

Loop.

Login or register to post comments by Bob
on Sun, 10/10/2010 – 10:43
#639296

Consensus is that Barry sending it back to congress with a note of rejection ensured that it remained an effective veto. 

Login or register to post comments by FASB 666
on Sun, 10/10/2010 – 10:10
#639257

“Without MERS the current mortgage crisis would be even worse.” ~Classic !

Login or register to post comments by ebworthen
on Sun, 10/10/2010 – 10:15
#639262

Imagine, if you will, large portable electromagnets that can be moved from site to site to wipe the hard drives of MERS or Wells Fargo or the IRS.

Hummm….buzzzzzz……hummm….buzzzzzz

Mortgage?  What mortgage?

Taxes?  What taxes?

Login or register to post comments by snowball777
on Sun, 10/10/2010 – 10:21
#639271

Got Stuxnet?

Login or register to post comments by snowball777
on Sun, 10/10/2010 – 10:21
#639268

Countdown until they pull an AIG and change the brand name?

LMAO that 2/3 of their ‘legal victories’ were on technicalities.

Login or register to post comments by Bob
on Sun, 10/10/2010 – 10:45
#639299

Faulty service: Hilarious!

Login or register to post comments by Milestones
on Sun, 10/10/2010 – 10:23
#639274

Not Sure: HR 3808 was vetoed specifically and was returned to the house for “further discussions”. At this point it doesn’t matter what the Senate does.   Milestones

Login or register to post comments by Goldmund
on Sun, 10/10/2010 – 10:32
#639285

Hmm, things must be getting serious if this CEO had to actually work on a weekend. Of course the press release could of been issued by a robo-signer.

Login or register to post comments by Tiberius
on Sun, 10/10/2010 – 10:38
#639293

It will be extremely interesting to see how this plays out.  MERS is an unenforceable transfer of property interests because there is no recordation of the change in property ownership (recording is required under most state law to make property transfers legally enforceable).  So does the the federal government override centuries of state property law in order to accommodate the powerful banking interests?  We know that Congress already passed a bill to do this, albeit it is being pocket vetoed by Obama.How many states will change their own laws to accommodate the banks?

If the federal government does change the law in order to favor the banks this will be a significant destruction of property rights.  America will officially be an authoritarian (with strong fascist tendencies) empire at that point.  No real property would be exempt from corporate or governmental confiscation.

 

Login or register to post comments by DonS
on Sun, 10/10/2010 – 10:49
#639305

Excellent analysis Tiberius. If i may add,

MERS has no basis for ownership it is only an electronic platform of quick and dirty lien registration. Property Ownership is what State Law and county level recordation is ment to accomplish and validate. The problem comes into play in the judicial states and now in the non-judical states in that although a mortgage or deed of trust may have been registered in the MERS system (and separately recorded in the county) and the subsequent assignment, it is that assignment of interest in the lien that in many cases was not properly recorded at the county level where the property records reside. Hence, we now have forged docs and affadavits to cure these defects.

 

Login or register to post comments by Everyman
on Sun, 10/10/2010 – 10:58
#639319

If it changed “Property Rights” then it would be unconstitutional.  The SCOTUS even the most liberal and conservative would not blink an eye when wupporting “property rights” issues.  Kinda like the “Freedom of Speech issue” with the Westborough Baptist loonies.

Login or register to post comments by Neo
on Sun, 10/10/2010 – 11:47
#639401

The Supreme Court will have no problem at all overlooking a minor detail such as individual “Property Rights”, if that is even the issue.

http://www.law.cornell.edu/supct/html/04-108.ZS.html

Login or register to post comments by Hephasteus
on Sun, 10/10/2010 – 10:40
#639294

Enlightened self interest = Lying your fucking ass off.

Welcome to the illuminati bitches.

Login or register to post comments by williambanzai7
on Sun, 10/10/2010 – 10:44
#639297

What if the automobile fencing industry got together and said from now on all motor vehicles will be registered in the name of Chico. This will obviate the necessity of having to file antiquated title registrations at the DMV. CHICO will track all vehicle beneficial owners on his powerful Pentium III computer.

The CHICO system will allow you to drive your stolen vehicle across state lines without ever having to concern yourself with antiquated DMV paperwork.

Need a loan from a loan shark? CHICO interfaces directly with your local shark and will record his lien on your whopper, without any need to file pieces of paper at DMV.

CHICO, the latest in title innovation.

Login or register to post comments by Everyman
on Sun, 10/10/2010 – 10:46
#639300

That is the best analogy, and quite fitting.

+1000

Login or register to post comments by williambanzai7
on Sun, 10/10/2010 – 11:13
#639318

CF

They are skating on very very thin theoretical ice. Munchausen Syndrome I believe it is called (factitious disorder). Pulling themselves onto the horse by their own boot straps. They think MERS is some magic incantation that can be invoked when the detailed documents required in a mortgage trust pooling and service agreement were eaten by the dog.

I took an hour to go and read one the other day. Trust me, the idea that the mental morons in the record department can jump through all those legal hoops for millions of mortgages is a humongous farce.

How did CHICO get good title in the first place?  Ummmmh? Just notarize it.

Login or register to post comments by Oligarchs Gone Wild
on Sun, 10/10/2010 – 11:57
#639418

Banzai7 – you used to drive me nutz with your whoring of your website, now you make every article you contribute artwork to that much more enjoyable.  Thank you and know that your work is appreciated.  You should work on some bridge banners next.

Login or register to post comments by williambanzai7
on Sun, 10/10/2010 – 12:09
#639436

Thanks very much. I continue to maintain my Blog as the central repository of images. I encourage everyone to use them to communicate the word which is so well understood by the readers of ZH.

Login or register to post comments by Miles Kendig
on Sun, 10/10/2010 – 12:24
#639459

Philanthropy worthy of the name.

Login or register to post comments by Bob
on Sun, 10/10/2010 – 10:58
#639302

Banzai!

[Traditionally, “banzai” (roughly translated as “hurrah”) was an expression of enthuasiasm, and crowds shouting the word three times, arms stretched out above their heads, could be considered the traditional Japanese form of applause.]

Login or register to post comments by buzzsaw99
on Sun, 10/10/2010 – 10:53
#639308

I wonder how many of those docs are sitting in agency, fedres, pensions, or fedgub toxic piles and the banks just don’t want to buy them back at face value because they know they stink. A slice of this, a dice of that, and poof, there go the 2010 bonuses.

Login or register to post comments by Everyman
on Sun, 10/10/2010 – 11:08
#639334

Here is a link to one of the best examples of the MBS/Foreclosure mess!

http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-…

Login or register to post comments by breezer1
on Sun, 10/10/2010 – 11:13
#639344

i got mered one time and my ass still hurts just thinking about it.

Login or register to post comments by kaiserhoff
on Sun, 10/10/2010 – 11:15
#639348

The judges’ pensions are ultimately paid by the mortgage receipts of Fannie, Freddie, and the rest of the mob.

Game, Set, Match.

Login or register to post comments by mtomato2
on Sun, 10/10/2010 – 11:15
#639349

I was just reading this post, and decided that we need to focus on truly important issues here on ZH. 

 

For example:  did you know that Frosted Pop-Tarts taste up to 86% better when eaten with the frosting side down?

Login or register to post comments by Fearless Rick
on Sun, 10/10/2010 – 11:22
#639356

I saw this article on Saturday morning and was wondering how long it would take ZH to pick up on it. Well, one day isn’t bad, I suppose.

However, checking the MES site, I stumbled upon this little piece of news:

Municipalities and States Adopt MERS® System to Ease Foreclosure, Vacant Property Registration 

Boston, Los Angeles, Connecticut and Virginia allow the MERS® System
as an alternative to existing proprietary registries

Link: http://www.mersinc.org/newsroom/press_details.aspx?id=243

Puts some more spin on the entire foreclosure issue. Will munis be putting MERS in place and disposing of years of precedent and hundreds of thousands of gov’t employees in County Clerk offices across the country?

MERS will replace all county recording functions? When the Pres. has to veto a proposed law (and the veto is solid, I’ve been reassured) that mandates what Federal AND STATE courts MUST do, we have entered the phase of federalism that knocks on the state’s doors.

So, what’s next – after the mid-terms, of course – could be a new law that has MERS writ large all over it, in the name of expedience in foreclosure-gate. The reasoning, of course, is that the paperwork protecting property rights was always just too cumbersome, so we’ll federalize it and make it law, and all you AGs suing can just go back to whatever it was you were doing before this little “misunderstanding.”

MERS will be set up as venue, judge and jury. No docs? No problem. Bank wins. How soon can you get out, Mr. Homeowner.

Knock, Knock.

Who’s there?

The government.

The government who?

The government who’s going to take away all your rights, that’s who.

I also found this line in the original piece to be hilariously self-serving:

Technology designed to reduce paperwork has a very positive effect on families and communities.

However, the forward thrust of this is not funny in the least.

Login or register to post comments by Bob
on Sun, 10/10/2010 – 11:28
#639363

Municipalities and States Adopt MERS® System to Ease Foreclosure, Vacant Property Registration  

Boston, Los Angeles, Connecticut and Virginia allow the MERS® System
as an alternative to existing proprietary registries

RESTON, Va., Aug. 24, 2010—This month, the City of Los Angeles joined the Commonwealths of Virginia and Massachusetts, and the State of Connecticut, in accepting the MERS® System as an alternative to the City’s registry of foreclosed properties and property preservation contacts for vacant properties.

“Many law enforcement agencies and municipalities already use the MERS® System on an informal basis to find a loan’s servicer and identify the companies responsible for maintaining vacant properties in their area,” said R. K. Arnold, President and Chief Executive Officer of MERSCORP, Inc. “By formally allowing lenders and property preservation companies to use the MERS® System as a suitable location to store this information, the City of Los Angeles can save money and the time it takes to find the data.”

Current MERS members can use the system to register the identity of the property preservation company responsible for maintaining vacant properties, which are frequently in foreclosure. The MERS® System can track both residential and commercial properties.

“Maintaining residential vacant properties in foreclosure is important to prevent blight and to protect property values,” said Doug Guthrie, General Manager of Los Angeles Housing Department. “We’re able to see these benefits more quickly while saving on the city budget by partnering with MERS, whose system is immediately available and already in use by many property preservation companies.”

MEDIA CONTACT: Karmela Lejarde, 703-761-1274 

 

Very far from funny indeed.

Login or register to post comments by Everyman
on Sun, 10/10/2010 – 11:24
#639359

MAN!  The Wll Street Journal is getting to be TERRIBLE in their opinion pages.  They lay down an “excuse” that this is all the borrower’s fault”, and nothing on the banks.  This is a POS opinion and NOBODY put their name to it.

http://online.wsj.com/article/SB1000142405274870469630457553844099538909…

 

They also make no mention of the next 2 levels of problem’s, the MBS and securitization process that WAS malfesence.

“The Wall Street Journal, prouldy serving crooked wall street bankers since inception”

 

Login or register to post comments by Bob
on Sun, 10/10/2010 – 11:30
#639367

Big surprise, eh?  Assholes. 

Of course, they have to be heavily invested in saving the interests whose name they bear. 

Login or register to post comments by snowball777
on Sun, 10/10/2010 – 11:48
#639405

Or at least Rupert’s.

Login or register to post comments by George Costanza
on Sun, 10/10/2010 – 11:27
#639361

This whole subject is a technicality. People who can’t pay their mortage are eventually going to get foreclosed one way or the other.  The laws will be changed or worked around.   Our govt has proven they don’t bail out “the public”, and the DO bail out the banks.  Precedents have been set.

Login or register to post comments by Oligarchs Gone Wild
on Sun, 10/10/2010 – 12:00
#639425

People are missing the side effect that by stopping foreclosures, the states are actually aiding in inflating home prices by reducing available inventory to potential buyers.

Moral Hazard indeed.

 

Login or register to post comments by Amish Hacker
on Sun, 10/10/2010 – 11:38
#639381

Here’s a question I have been wondering about: assuming the s had never htf and MERS had continued to operate without all this meddlesome investigation, what would have happened when I made my 360th mortgage payment? I just don’t see how I would have ended up with clear title to the property I had been obediently “paying off” for thirty years. But my money must have gone somewhere, right?

Login or register to post comments by Everyman
on Sun, 10/10/2010 – 11:49
#639406

You would not have a “clear title” because the MBS and the other securitizations did not have clear title to make sure all the people got paid.

This is the total problem.  THE BANKS WERE OPERATIN ILLEGALLY to fill up the MBS with mortgages.

Login or register to post comments by Cistercian
on Sun, 10/10/2010 – 12:48
#639499

 The solution seems obvious…award the note to the home-buyer to punish the criminals responsible for this disaster.Yes, the system would crash and burn.Yes, irresponsible home-buyers would be rewarded(however, considering the near term dystopian clusterfuck that would result, this is debatable….having a house means little if there is no food on the store shelves and no fuel).

  But the now obviously needed revolution has to start somewhere.I say we crush the banks and financial houses who made this disaster….and this time, bail out the suckers….just for the novelty alone.

 Let’s face it, the currency is going to fail and these bastards have their foots on our throats…if social collapse is looming anyway, why not.I think it is better than the doom level serfdom TPTB envisage for the masses.

 

 I grow weary of the ongoing theft of everything….can’t we just penalize them severely for once?

Login or register to post comments by snowball777
on Sun, 10/10/2010 – 11:46
#639397

We didn’t make the Big Giant Head. We just made it big and giant.

Login or register to post comments by A Man without Q…
on Sun, 10/10/2010 – 11:49
#639408

1) MERS holds legal title to a mortgage as an agent for the owner of the loan 2) MERS can become the holder of the promissory note when the owner of the loan chooses to make MERS the holder of the note with the right to enforce if the mortgage loan goes into default.

What seems to be suggested here, is if I am an investor in a mortgage trust, and I want to get a recovery out of any of any defaulted underlying loans, I have to give the mortgage note to MERS, so that they can match with title in order to enforce.  So what is left in the trust?  What happens if MERS collapses, does the trust have a secure claim on these assets (i.e. do you convert what you thought was a secured loan in the trust to an unsecured loan to MERS?)

Ok, so then let’s say the case is successful, MERS then has legal ownership of the property and any residual claim from the borrower (assuming a full recourse state), then what happens?  They are trying to pretend that economic ownership and legal ownership can be sepearated, when it is the economic ownership which gives the legal right to enforce.

It seems to me, the fact is again and again, the securities issued out of the trust are fundamentally flawed, i.e. they have not been perfected.  Therefore, the buyer of these notes has a very strong case to get ALL of their money back.

What’s fascinating about this is the banks (originators and sponsors) are going to get attacked from all sides, from the class action suits brought by borrowers, by state governments and by the investors.  It’s going to be very ugly.

Login or register to post comments by snowball777
on Sun, 10/10/2010 – 11:59
#639422

And they will deserve every last ounce of pain they receive for their hubris in attempting to destroy our economy by playing so recklessly with other people’s money in the name of short-term profit.

They thought they couldn’t lose by securitizing the proverbial ‘bill of goods’ and passing the timebomb onto a sea of ignorant schmucks (while buying action on the outcome of the blast, no less).

Fuck them up their asses until their goddamned eyes bleed.

Login or register to post comments by Oligarchs Gone Wild
on Sun, 10/10/2010 – 12:11
#639441

MERS – Your complete one stop loan servicing team

Monetary
Electronic
Removal
Systems

Don’t let those contracts and pesky laws get in the way of fucking customers out of their rights and their money.  You need their cash and you need it now, and if you ever need their assets, we’ll help you there too.

We’re the HFT system of Realtards and Banksters, where everything happens in a nanosecond and nobody is responsible for anything.

 

Login or register to post comments by Akrunner907
on Sun, 10/10/2010 – 12:20
#639456

Anybody find it interesting that HR 3808 was introduced on October 9, 2009?  Do you think that somebody already knew about all the problems in the mortgage market awhile ago? 

Login or register to post comments by VWbug
on Sun, 10/10/2010 – 12:25
#639460

biggest winners:

1 lawyers

2 freeloaders who bought more than they could afford

3 people trying to sell a house

4 banks

Biggest losers:

1 taxpayers

2 taxpayers

3 taxpayers

4 taxpayers

Login or register to post comments by Miles Kendig
on Sun, 10/10/2010 – 12:27
#639462

What else can MERS do besides bend over, reach through their legs and kiss their ass good by.  I wonder who underwrites or bonds them…. and what the condition of the title insurance market is.  Probably just like the monolines of yesteryear.

Login or register to post comments by Zerohedge fan
on Sun, 10/10/2010 – 12:40
#639489

Magic (read MERS) Trick!

“….You think you can steal from us and walk away?”

Joker

Login or register to post comments by Eureka Springs
on Sun, 10/10/2010 – 12:42
#639491

So let me see if I have this correctly?

 

MERS: One card in the ponzi house/deck. Brought to you by Goldman Sachs in 1995. And we are not supposed to believe ignoring county clerks and otherwise jamming up the sytem with ‘privatized efficiency’ wasn’t the plan all along.

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