MICHIGAN SUPREME COURT: NO TO MERS, YES TO SERVICERS

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EDITOR’S COMMENT: The decision is somewhat scrambled but the basis for it is well-defined in the law. An agent CAN bring an action on behalf of a principal as long as they disclose what they are doing. If you had a bookkeeper, theoretically she could go into small claims court claiming payment on your behalf — but she can’t claim payment to her on the promise or implied promise that she will turn over the money to you. I don’t think this decision does much for the chances of either the banks and servicers on one hand, or the homeowners on the other hand.

When the lie about who they are and what they are doing they are committing fraud on the court which is what those indictments in Nevada are all about.

Michigan Supreme Court upholds controversial foreclosure system

The Michigan Supreme Court on Wednesday reversed an appeals court ruling that held the Mortgage Electronic Registration System (MERS) had illegally foreclosed on thousands of homes last spring, according to Bloomberg.

The Michigan Court of Appeals had ruled that MERS, a national system to assist in the sale of mortgage debt, didn’t have the legal right to foreclose by advertisement when it didn’t lend the money.

The decision had been used in multiple lawsuits seeking to prevent or void foreclosures.

But the state Supreme Court held that Michigan law allowed foreclosure by parties acting as servicing agents.

Democrats blasted the ruling, noting that the Michigan Association of Realtors’ spent $450,000 to help elect Republican justices in 2010.

“This is just another pro-special interest, pro-big bank decision by the Michigan Supreme Court,” Michigan Democratic Party Chair Mark Brewer said. “These Republican Justices repeatedly side with the special interests who fill their campaign coffers during election season. Siding with big banks over the victims of illegal foreclosure is inexcusable and the voters will hold this Court accountable in 2012.”

“We need a Court that is fair and unbiased,” added Brewer. “If you’re an insurance company, oil company, big bank, or polluter, this is the Court for you.”

Tags: bankruptcy, borrower, countrywide, disclosure, foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee, WEISBAND
Posted in bubble, Corruption, Eviction, securities fraud |