EXCELLENT MERS ANALYSIS: ILLEGAL SCHEME TO AVOID/EVADE STATE LAW, TAXES, FEES, FINES, PENALTIES

LOOK CAREFULLY AT EXHIBITS CONTAINING MERS ADVERTISING TO LENDERS LOOKING TO TRANSFER NOTES AND MORTGAGES

see mers-membership-information-reveals-index-to-securitization-and-investors-allegation-that-mers-is-authorized-or-even-nominal-beneficiary-is-false

• washington-state-buse-vs-first-american-title-greenpoint-rescomm-mers-amended-complaint-well-written-look-carefully-at-exhibits-containing-mers-advertising-to-lenders-looking-to-tra
• mers-explained-by-aurora-lawyers
• exhibits-motion-and-temp-restraining-order-granted

From the attached amended complaint.

That Deed of Trust (“DOT”) contained a false representation on its face when it represented that Defendant MERS was a beneficiary under the DOT. Paragraph (E) States that “MERS is a separate corporation that is acting solely as a Nominee for Lender and Lender’s successors and assigns. MERS is the beneficiary under this Security Instrument.” As will be demonstrated below, MERS is NOT the beneficiary under the DOT, it never had ownership or possession of the Promissory Note which is the obligation which is secured by the DOT, and MERS has never been entitled to receive one cent of remuneration from Mr. Buse’s loan proceeds.The statement that MERS is the nominee is nonsensical language which means nothing in a real estate transaction and most certainly, MERS has never been nor is it now the beneficiary under the DOT.  The language is a sham.

From MERS explained by Aurora Lawyers, Bold emphasis are my highlights.

A. The Residential Mortgage Market and Function of MERS

When a mortgage lender loans money to a home buyer, it obtains a promissory note in the form of a negotiable instrument from the borrower, as well as a mortgage instrument in the form of a deed of trust which is recorded in the county official records. The lender often does not continue to hold the note. Instead, the lender sells the note into the secondary mortgage market, most often to one of the government or government-sponsored entities created by statute to purchase residential mortgage loans from banks and other lenders. See 12 U.S.C. §§ 1451-59, 1716-23 et seq. (creating the Government National Mortgage Association (“Ginnie Mae”), Federal National Mortgage Association (“Fannie Mae”), and Federal Home Loan Mortgage Corporation (“Freddie Mac”)). In turn, these entities re-sell the notes into a tertiary mortgage backed securities market, usually as part of a bundle of notes held in trust for investors. As a result, the notes are held for the benefit of numerous people simultaneously, whose identities change as these negotiable instruments are sold and resold in these markets, and as the investors sell and re-sell their shares in the mortgage-backed securities.

Because of the secondary and tertiary mortgage markets, the original lender is then able to make the funds from the first sale of the note available to additional home buyers. The availability of these funds is the specific and intended result of the statutes that created the government and government sponsored entities – to increase funds for home ownership in the

United States. See 12 U.S.C. §§ 1451, 1716.

MERSCORP, Inc. and MERS were companies formed to play an integral part in the federally established free-market system created to increase liquidity in the market for home loans. In 1993, the Mortgage Bankers Association, Ginnie Mae, Fannie Mae, Freddie Mac and others in the real estate finance industry created an electronic registration and tracking system that is similar to the process used with great success by the Depository Trust Company for the securities industry. MERSCORP, Inc. was formed to track both beneficial ownership interests

in, and servicing rights to, mortgage loans as they change hands throughout the life of the loan.

This tracking assists the mortgage banking industry by reducing questions regarding these contractual interests as they are bundled into mortgage-backed securities. In this manner, MERSCORP, Inc. facilitates liquidity in the secondary mortgage markets. MERS serves as the mortgagee or beneficiary for the MERS member lender.

Upon the purchase of a home, the borrower signs a loan contract that names MERS as the beneficiary (as “nominee” for the lender and its successors and assigns as here). In the loan contract, the borrower assigns his or her right, title, and interest in the property to MERS. The borrower contractually agrees that, in the event of default, MERS is a proper party to foreclose on the home. The mortgage or deed of trust with MERS as a named beneficiary is recorded. When the note is sold by the original lender to others, the sales of the notes are tracked on the MERS® System. As long as the sale of the note involves a member of MERS, MERS remains a named mortgagee or beneficiary of record and continues to act as a nominee for the new holder.

This relationship is memorialized in the original mortgage or deed of trust to which the borrower is a party. If a member is no longer involved upon sale, an assignment from MERS to the non MERS member is made, executed and recorded in the county where the real estate is located, and the loan is “de-activated” from the MERS® System.