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We all know that Mortgage Electronic Registration Systems (MERS) has been pretty thoroughly discredited although there are still many judges whose attitude is “so what”, and the foreclosure goes forward anyway. MERS does not meet the statutory requirements to be a beneficiary under a deed of trust nor a mortgagee under a mortgage deed. It is a naked nominee, wearing none of the clothes required to be a lender, holder of the note or owner of the mortgage. And it even says so on its website, disclaiming any interest in any loan, debt, note or mortgage. It has been used extensively (an estimated 80 millions loans have been registered in the MERS system). Its purpose was to hide—-
(1) the real lender, making virtually every loan a table funded loan and therefore predatory per se (something which people have still not caught onto — until the Supreme Court says AGAIN, predatory per se means that it is against public policy, negating the right to obtain equitable relief [foreclosure]
(2) the real transactions of real money in the origination of loans and the acquisition of loan documents
(3) the real players in the lending process
(4) the real players in the collection process
(5) the real players in the foreclosure process
(6) theft from the investors
(7) theft from the borrowers
(8) fraud on the courts
Many knowledgeable judges, county recorders, legal analysts and title agents around the country have all come to the same conclusion: the use of MERS forever corrupted the public records systems for recording title and interests in real property. And yet those defective encumbrances remain in the public records as though MERS was real and the facts from the MERS platform were true. Clearing the title problems and compensating victims of foreclosure fraud enabled by MERS remains among the great challenges to all branches of government.
The problem for the banks is that if they fess up to the truth, the banks, their stockholders and anyone who relies upon them (i.e., the Federal government) will see their benefits go up in smoke. So they have been quietly seeking a way to cover the whole thing up and sweep it under the rug. Statutory changes were discarded because that would amount to admitting that something was wrong. So they hit upon the idea of institutionalizing the whole concept all over again — which will lead to yet another and bigger catastrophe than the one called the “Great Recession.”
It was obvious that if any of the largest banks were involved, alarm bells would have gone off all over the place. So they are using Fannie and Freddie, with a GMAC exec at the helm to start a “Common Securitization Platform” (CSP) that will not only enhance the illusion that prior fake securitizations were real, but also provide a quasi-governmental entity whose “business records” will seem more real than even the property records of any given county. It is a blatant usurpation of state powers with no more viability or validity than MERS. This is MERS 2.0. They will probably treat it as an administrative function of a quasi governmental agency entitled to the presumption of truth. Sounds like MERS, looks like MERS, smells like MERS, Walks like MERS …. must be a duck. [I said in 2008 in a 6 day marathon deposition of me as expert witness that they might just as well have put the name “Donald Duck” on the note and mortgage — since they were already using fictional characters.]
Bottom Line: They are institutionalizing prior acts of fraud against the taxpayers, the government (Federal, state and city), investors and borrowers and clearing the way for it continue unabated. The reason is clear: our political leaders from all political spectrums don’t have a clue about the real world of finance and they are scared to death by threats from bankers that if they go down, they will take the country down with them.
Where is Teddy Roosevelt (“Trust buster”) when you really need him?