MERS and The Foreclosure ProblemPosted by Al @ 6:49 am
Bloomberg News MERS Story
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.”