Pardon Me! Here IT Is!–CONGRESSIONAL OVERSIGHT REPORT [MERS DISCUSSION]

Editor’s Comment: I picked this up from STOPFORECLOSUREFRAUD.com but you can get it directly if want to read it all. There are three points I wish to draw your attention to:

1. The realization that we have a systemic title problem that is getting worse daily.
2. Neither the media nor the legislators get it: they say that they don’t want to “de-legitimize MERS”. WARNING: THIS PRESUMES THAT IT IS LEGITIMATE NOW. It isn’t. First of all MERS disclaimed any financial or property interest as a condition to being named on the mortgage or deed of trust so it is not only a nominee, it is nothing. You might just as well have filled in Donald Duck. Second the use of a nominee with undisclosed principals violates truth in lending laws and defeats the purpose of recording interests in real property. BOTH MERS and the LOAN ORIGINATOR were shills, straw-men, for undisclosed people who could be changed at will. Thus anyone examining the title would be required to take the word of a private party with no actual knowledge as to who should be considered the mortgagee at any point of time, which could change from minute to minute. Third not only is it wrong in principle it is wrong in fact: the MERS database is an unsecured database and intentionally designed as such. ANYONE can get a user name and password and change the data and they do. I’ve seen it. One minute the underwriter is listed as the “owner” and the next minute it is the servicer, and the next minute it is the named Trustee of the pool. So the question is really simple: Is it worth creating title chaos for decades to come and maybe forever just to save the skins of some megabanks that are completely unnecessary and whose presence in the marketplace is destroying the American position of world leadership?
3. The remedy that is being piloted around the country is that they are bringing the foreclosures in the name of the loan originator. They call that a “work-around.” You might call it a shell game. This is what happens when the people with the money control the microphone and the people with the knowledge are sent to Siberia. Let me make it simple: the loan originator either was or was not the lender. They were the lender if the money came from their capital resources available under regulation for lending. If the money was wired in from, say, Wells Fargo with whom the  “loan Originator” had no account, or it was a wired from ANY source other than the “loan originator” then the money used by the closing agent was the money of an undisclosed third party. That is called a table-funded loan. Under Regulation Z, table funded loans as a pattern of practice are presumptively predatory and subject to rescission and other remedies. A table funded loan is a loan in which the real lender is not disclosed depriving the borrower of knowing who  he/she is doing business with amongst other things and its illegal and it should be. By definition it means that the party named on the note and mortgage is NOT the creditor. So if their “work-around” is to sue in the name of the loan originator, then in discovery you find that payments were directed to parties other than the originator. Why would that be if they were the lender?

In short, this dog won’t hunt. There is no way to fix the mortgages, notes and obligations without the investors direct participation and without the borrower’s participation. The banks don’t want to do that because when the investors and borrowers compare notes they are going to find that what they thought was the biggest fraud on earth, is really tens times worse. The test is easy: if the loans were real and everything was legitimate, the  why would you need MERS or a mortgage originator who isn’t the lender? If this is just a technicality, then why can’t they just fix it by bringing everyone into the courtroom or the negotiating table? The answer is they can’t and they don’t want to because they too busy milking this until there is no juice left — then  they might say OK here, take it. It reminds me of an old Buddy Hackett joke about a duck. remind me to tell it to you when nobody else is listening.

Categorized | STOP FORECLOSURE FRAUD

If sufficiently widespread, these complications could have a substantial effect on the mortgage market, inasmuch as it would destabilize or delegitimize a system that has been embedded in the mortgage market and used by multiple participants, both government and private. Although it is impossible to say at present what the ultimate result of litigation on MERS will be, holdings adverse to MERS could have significant consequences to the market.

according to a report released by Standard & Poor.s, ¡°most¡± market participants believe that it may be possible to solve any MERS-related problems by taking the mortgage out of MERS and putting it in the mortgage owner’s name prior to initiating a foreclosure proceeding.58 According to one expert, the odds that the status of MERS will be settled quickly are low.59