Archive for October, 2010

You think the banks had problems before. This is a potentially expensive problem that the American taxpayer will probably be asked to pay for. I have a feeling that the only way this will go away is for the banker-friendly U.S. Congressmen to paper this over and retroactively grant immunity to the bankers so they can continue to financially rape America. Otherwise, there will be a huge bill for the banks to pay if more states continue to file these lawsuits.

Tennessee vs. Mers, Mortgage Electronic Registration Systems.————April 20. 2010, RECORDING FRAUD, F…

A recent story from Bloomberg reports on MERS and Mortagegate

A definitive ruling against MERS might slow any future bundling of mortgages into securities since the company played a role in that process…

…“MERS is the central device by which the banks have tried to opt out of the legal system and the real-property record system,” U.S. Representative Alan Grayson of Florida said in an interview. “They have taken it upon themselves, with the supposed consent of the borrowers, to violate a system of property record-keeping that we’ve had going back centuries.”…

…The company’s tagline is “Process Loans, Not Paperwork.”…

…Under the MERS system, a borrower who takes out a loan agrees to allow the company to act as the lender’s nominee, or agent, on the mortgage or deed of trust securing the property. That means MERS holds the lien, according to the company…

…“The problem with MERS is it takes a public function and puts it into a private entity that doesn’t seem to have any clear accountability,” said Alan White, a law professor at Valparaiso University in Indiana…

…MERS played a key role in the bundling of mortgages into securities that reached a frenzy before the economic decline of 2008, critics including Grayson of Florida said. It allowed banks to sell and resell home loans faster, easier and cheaper, he said….

…“MERS was a facilitator of securitization…

…A big selling point for the company is its cost savings. It charges $6.95 for every loan registered, Lejarde said. With an average cost of about $40 for filing a mortgage assignment with local counties, MERS has saved the industry about $2.4 billion…

…courts have expressed confusion that MERS positions itself as both mortgage owner and representative of a mortgage owner…“It is axiomatic the same entity cannot simultaneously be both an agent and a principal with respect to the same property right,” Christopher Peterson, a law professor at the University of Utah…

…MERS has no standing in proceedings to seize delinquent borrowers’ homes…

…bankruptcy attorneys who criticize MERS say it has no right to foreclose when it doesn’t hold both the promissory note and the security instrument — the mortgage or trust deed. The U.S. Supreme Court ruled in 1872 that a mortgage has no separate existence from the note, Peterson wrote…

…supreme courts in Arkansas, Kansas and Maine have found that MERS had no standing in foreclosure proceedings under their states’ laws…

…MERS has also come under fire for allowing members to appoint their employees as MERS certifying officers — as assistant secretaries or vice presidents of MERS — to sign documents, including assignments. MERS has deputized “thousands” of such certifying officers,…

…MERS and its members have been sued this year for racketeering in New York, Florida and Kentucky federal courts, accused of conspiring to falsely foreclose on loans and “to undermine and eventually eviscerate long-standing principles of real-property law.”…

According to the Progressive Left, Tea Party Patriots are haters of almost everything. Well, after the scuffle in Kentucky where a wig-disguised Moveon protester was tackled and detained (by foot), her wig was destroyed. So, I go through several blogsites to see what other hate items the progressives have tagged the Tea Party Patriots with.

Ok, wait for it………

They are wig-haters and hate everyone that might wear a wig to include: woman losing their hair, woman receiving cancer treatment, and children receiving cancer treatment. You just can’t make this stuff up.

These crazy progressive crackpots want to run America. I don’t think so. They want to run America in the ground.

Bloomberg News MERS Story


MERS Registry Comes Under Fire in Foreclosure Crisis: Video
Uploaded by Bloomberg. – Up-to-the minute news videos.

It seems that most attention given to the mortgage foreclosure fiasco is robosigners and forged documents that allowed some foreclosures to be effected. I think the bigger issue that should be considered is the fraud that MERS perpetrated to avoid the payment of counties’ courthouse fees that MERS intentionally avoided. Of course, the other issue that seems to be relegated insignificant regards the chain of title regarding all properties that are registered on the MERS system. They have created what essentially can be described as a shadow title/deed registering system that deprives America’s counties from much needed revenue.

The Mortgage Electronic Reporting System (MERS) is a shell company owned by the largest banks in the country that are engaged in issuing mortgage loans. This is potentially huge blow for the crooked banks as they seek more back-door money from the taxpayer. Be warned that trying to follow MERS and their fraud is a rabbit hole from hell and apparently very deep.

Several states have filed lawsuits against MERS to collect the massive amount of money they scammed the America’s taxpayers out of. Oh yea, taxpayer make up this lost revenue. This is probably an issue that will be papered over by some banker friendly legislation by the crooks in Congress.

A good primer on this can be found on Jim Sinclair’s website jsmineset.com:

There was “rampant” mortgage fraud in the loan application process according to the FBI as far back as 2004. (Click here to see one of many stories of the FBI warning of mortgage fraud) There was real estate document fraud when the original Promissory Notes and loan documents were “lost.” The Promissory Notes were required to create tens of thousands of mortgage-backed securities (MBS). No “note,” no security. That is security fraud. No security means the special IRS tax treatments for the MBS’s were fraudulently obtained. That is IRS tax fraud. Because there were no documents, the rating agencies fraudulently made up triple “A” ratings for the securities. When the whole mess blew up, big banks hired foreclosure mill law firms to create forged documents. That phony paperwork was and is being used to wrongfully remove homeowners from their property. That is foreclosure fraud.

It appears to me the entire mortgage/securitization industry is one giant criminal enterprise. And yet, last Wednesday, Housing and Urban Development Secretary Shaun Donovan said, “We have not found any evidence at this point of systemic issues in the underlying legal or other documents that have been reviewed.”

The Treasury Department’s Tim Geithner is continuing to stonewall on FOIA request for the behind the scene deal cut with Citigroup. What they did receive was not only irrelevant, but most of it was heavily redacted. So much for the transparency in government promised by Obama.

Bloomberg Story on Geithner Stonewalling FOIA on Citigroup


Treasury Shields Citigroup as FOIA Made Meaningless: Video
Uploaded by Bloomberg. – Watch the latest news videos.

As reported by Boston Herald:

Beleaguered Bay State and U.S. taxpayers coughed up a staggering $35.7 million this year in free emergency health care for more than 52,000 illegal aliens in Massachusetts, sparking outrage from candidates and critics who back a tougher line on immigration.

The figures — released by Gov. Deval Patrick’s administration under an order for the Secretary of State’s office and after more than a month of ducking questions — show illegal immigrants who belong to MassHealth Limited received $33.8 million in taxpayer-funded in-patient hospital care this year.

They also made 6,160 visits to the state’s overburdened emergency rooms in the fiscal year ending in June for an additional cost of $1.9 million, a Herald analysis shows.

Yes, illegal aliens are still receiving Masscare benefits, as will be the case if Obamacare is enforced. So much for the argument that illegal aliens are not a strain on our economy. America can’t afford to keep footing the bill for these law breakers.