BANKS ARE TRYING MERS 2 IN EFFORT TO LEGALIZE THEIR BEHAVIOR

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EDITOR’S COMMENT: The Banks have tried many things to legalize their illegal activities, resulting in corruption of our title registries around the country and siphoning off money from investors, homeowners and and taxpayers that has brought us to the ever-present likelihood of collapse. MERS One of the tools they used to insulate themselves from activities they knew were wrong. They tried slipping in amnesty provisions from the proposed electronic signature act, which was almost unanimously approved by Congress, but then vetoed by Obama. They tried outright amnesty but that didn’t get very far in Congress or state legislatures. Now they want to propose MERS 2, which even realtors and title insurers think is a rotten idea.

They will keep trying. Persistence sometimes pays off. If they do succeed we will have allowed them to dodge the bullet. In the 1980’s the savings and loan scandal resulted in more than 800 people going to jail — people from the banking industry. In the securitization scam or “mortgage meltdown” as some refer to it, the number of high level people prosecuted is zero. CBS’ 60 minutes pointed that out last night. The real question is why aren’t these people in jail? The answer is because they are not being prosecuted.

Write your congressman, senator, state legislators and governor and tell them how unhappy you are with the stewardship of the economy and the housing crisis that caused it. Most of all tell them that MERS 2 is a bad idea and you will hold them accountable at the polls in November. And mean what you say — go to those polls and vote against the bank interests and the political lackeys that brought us to this point.

For those who don’t quite get what NAILTA is saying, it is simple. Title insurers are worried about liability. They know there is going to be a major test of their liability as cases float toward the courts and up the appellate chain, with suits alleging they should recognize the current title defects, admit that the defect was caused at closing, and that the exceptions on the policy did NOT exclude liability for title problems associated with the securitization scam. Title insurers are obviously not writing the same policies that they did when this scam was in full operation.

So the banks answer is to create more sham companies that will issue title insurance in order for them to sell the properties they stole. MERS 2 is an essential ingredient of being able to do that so that they can “rely” upon information over which the Banks have total control. This is akin to the “substitution of trustee” in nonjudicial states where Banks declare themselves to be creditors when in fact they are not and then go on to substitute themselves (a subsidiary or affiliate) as the “independent” trustee on the deed of trust. It is a sham and should be treated as such.

The National Association of Independent Land Title Agents (NAILTA) has announced that it is opposed to a provision in legislation offered by Senator Bob Corker (R-TN) that would create “MERS 2”, a federal mortgage registry modeled after and designed to replace the existing bank-owned MERS mortgage registry.

In its position paper on the Corker bill, Senate Bill 1834, NAILTA says that it “is opposed to any reconstituted MERS system because the MERS model is a deeply flawed system that continues to harm consumers, small business owners, and county governments across the United States.”

According to NAILTA, “[A]ny consideration of creating a new MERS without having successfully resolved the well-known flaws and inadequacies of the previous MERS system is a foolhardy exercise. S.B. 1834 proposes no solution to the prevalent flaws with the current MERS system. Instead, it merely seeks to establish MERS 2.0 based upon the MERS in use on the date of enactment.”  One of those purported flaws in MERS is that it “fails to reconcile 50 states worth
of mortgage recording and foreclosure law.”

NAILTA claims that MERS, a system “built by the mortgage industry, for the mortgage industry” according to its founders, has harmed the land title industry in particular by shifting the business of title insurance away from title professionals and toward banks. NAILTA says that MERS has also damaged land title records and deprived local governments of fees used for general purposes such as public safety.

NAILTA characterizes MERS 2 as a Federal Torrens title system– subject to the considerable expense and difficulty of reconciling states’ differing recording and foreclosure laws into one system.  MERS failed because of the same pitfall, and consumers, county governments, and title agents have borne this expense while only the owners of MERS have benefited, according to NAILTA.

NAILTA has contacted Senator Corker’s office and requested a meeting with the Senator, to express its “deep reservations and opposition concerning MERS and the specific problem we have with [the MERS 2] provision.”

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Tags: bankruptcy, borrower, countrywide, disclosure, foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, MERS, modification, quiet title, rescission, RESPA, securitization, TILA audit, title insurance, trustee, WEISBAND
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