Posts Tagged ‘MERS fiasco’

The MERS fraud…

November 12, 2010

Everyone needs to do their own research into this subject.  I know it is arcane and mostly painful, but by ignoring this fraud being perpetrated upon the American Public, it will cost all of us.  Here is a brief explanation of MERS.

This article from CNBC is talking about a new “retroactive” law possibility in the lame duck session or the new congress.  This is the rich bankers paying the legislators to make a new law that protects the bankers from them essentially breaking laws that helped to put us in the financial crisis that we now find ourselves in.

The new law will let the rich bankers continue to use robo-signers in foreclosure proceedings.  These robo-signers are BY LAW supposed to EXAMINE loan documents (the ones ORIGINALLY signed by all parties) and VERIFY that the homeowner is violating the agreement and VERIFY that the organization (BANK) proposing the foreclosure, actually has a right to foreclose. 

This is a simplistic explanation.  In the past if Bank 1 wanted to sell the loan to Bank #2, they would provide the documents at the transaction.  MERS was set up to streamline the process.  The money would come from Bank 2 (or a combination of Banks/investors) in Door #1.  The documents would come from Bank #1 in Door #2.  MERS would say that the transaction occurred, take a fee, and everyone is happy so long as the loan continues to get paid.  This transaction could happen multiple times with each mortgage.  The problem is MERS did NOT get all the paperwork to the appropriate people.  Now that there are foreclosures, Bank #2, who bought the loan, can not lawfully prove that they have the right to foreclose.  So, the fraudulently made up paperwork to satisfy the courts.  Now the courts have discovered this fraud, and the banks could be liable for Billions, and NOT have rights to the suspect property.

In my opinion, I do NOT have any sympathy for the banks.  They have gotten caught, not doing their jobs.  Now, they are using some of their ill-gotten gains to buy representatives to make a law that will protect them from devastation.  Call your representatives.  Let them know that CRIMINALS belong BEHIND bars.  Do not let this FRAUD continue.