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Sun Feb 5, 2012, 07:08 PM

NY AG suing MERS!!!!

If I were a praying person, I would pray for this guy every day.

From the NY State AG Official Page:

Schneiderman: MERS And Servicers Engaged In Deceptive and Fraudulent Practices That Harmed Homeowners And Undermined Judicial Foreclosure Process

NEW YORK – Attorney General Eric T. Schneiderman today filed a lawsuit against several of the nation’s largest banks charging that the creation and use of a private national mortgage electronic registry system known as MERS has resulted in a wide range of deceptive and fraudulent foreclosure filings in New York state and federal courts, harming homeowners and undermining the integrity of the judicial foreclosure process. The lawsuit asserts that employees and agents of Bank of America, J.P. Morgan Chase, and Wells Fargo, acting as "MERS certifying officers," have repeatedly submitted court documents containing false and misleading information that made it appear that the foreclosing party had the authority to bring a case when in fact it may not have. The lawsuit names JPMorgan Chase Bank, N.A., Bank of America, N.A., Wells Fargo Bank, N.A., as well as Virginia-based MERSCORP, Inc. and its subsidiary, Mortgage Electronic Registration Systems, Inc.

The lawsuit further asserts that the MERS System has effectively eliminated homeowners' and the public's ability to track property transfers through the traditional public records system. Instead, this information is now stored only in a private database – which is plagued with inaccuracies and errors – over which MERS and its financial institution members exercise sole control. Additional defendants include BAC Home Loans Servicing, LP, Chase Home Finance LLC, EMC Mortgage Corporation, and Wells Fargo Home Mortgage, Inc.

“The banks created the MERS system as an end-run around the property recording system, to facilitate the rapid securitization and sale of mortgages. Once the mortgages went sour, these same banks brought foreclosure proceedings en masse based on deceptive and fraudulent court submissions, seeking to take homes away from people with little regard for basic legal requirements or the rule of law,” said Attorney General Schneiderman. “Our action demonstrates that there is one set of rules for all – no matter how big or powerful the institution may be – and that those rules will be enforced vigorously. Only through real accountability for the illegal and deceptive conduct in the foreclosure crisis will there be justice for New York’s homeowners.”

The financial industry created MERS in 1995 to allow financial institutions to evade local county recording fees, avoid the hassle and paperwork of publicly recording mortgage transfers, and facilitate the rapid sale and securitization of mortgages. MERS operates as a membership organization, and most large companies that participate in the mortgage industry – by originating loans, buying or investing in loans, or servicing loans – are members, including JPMorgan Chase, Bank of America, Wells Fargo, Fannie Mae, and Freddie Mac. Over 70 million loans nationally have been registered in MERS System, including about 30 million currently active loans.

Through their membership in MERS, these companies avoided publicly recording the purchase and sale of mortgages by designating MERS Inc. – a shell company with no economic interest in any mortgage loan – as the "nominal" mortgagee of the loan in the public records. Instead, MERS members were supposed to log mortgage transfers in the MERS private electronic registry. The basic theory behind MERS is that, because MERS Inc. serves as a "nominee" (or agent) for most major lenders, it remains the "mortgagee" in the public records regardless of how often the loan is sold or transferred among MERS members. Thus, although MERSCORP has only about 70 employees, MERS Inc. serves as the mortgagee of record for tens of millions of loans registered in the MERS System.

MERS has granted over 20,000 “certifying officers” the authority to act on its behalf, including the authority to assign mortgages, to execute paperwork necessary to foreclose, and to submit filings on behalf of MERS in bankruptcy proceedings. These certifying officers are not MERS employees, but instead are employed by MERS members, including JPMorgan Chase, Bank of America, and Wells Fargo.

MERS' conduct, as well as the servicers’ use of the MERS System, has resulted in the filing of improper New York foreclosure proceedings, undermined the integrity of the judicial process, created confusion and uncertainty concerning property ownership interests, and potentially clouded titles on properties throughout the State of New York. In fact, several New York judges have questioned the standing of the foreclosing party in cases involving MERS loans and the validity of mortgage assignments executed by MERS certifying officers.


http://www.ag.ny.gov/media_center/2012/feb/feb03a_12.html

7 replies, 1195 views

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Arrow 7 replies Author Time Post
Reply NY AG suing MERS!!!! (Original post)
dixiegrrrrl Feb 2012 OP
aquart Feb 2012 #1
Tansy_Gold Feb 2012 #2
izquierdista Feb 2012 #3
dixiegrrrrl Feb 2012 #4
dixiegrrrrl Feb 2012 #5
Autumn Colors Feb 2012 #6
Warpy Feb 2012 #7

Response to dixiegrrrrl (Original post)

Sun Feb 5, 2012, 07:12 PM

1. YES! Why did they wait so long?

Dear MERS, I want you utterly destroyed.

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Response to aquart (Reply #1)

Sun Feb 5, 2012, 07:15 PM

2. utterly, completely, totally, and absolutely.

vaporized.

extinguished.

demolished.

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Response to dixiegrrrrl (Original post)

Sun Feb 5, 2012, 07:20 PM

3. Capital punishment

 

How does the state carry out capital punishment on a corporation? Run the articles of incorporation through a paper shredder? Maybe stand the corporate seal up in front of a firing squad? How about drawing an quartering the corporate bank account, one quarter to the IRS, one quarter to Medicare, one quarter to the Social Security trust fund, and one quarter to LIHEAP?

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Response to izquierdista (Reply #3)

Sun Feb 5, 2012, 07:25 PM

4. Well, I could live with the drawing and quartering part....

if the guys who dreamed up MERS and the guys ( of course they were guys, don'tcha know) who ran MERS were "chosen" for the activity.

They STOLE people's homes.
They STOLE fees from our counties.

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Response to dixiegrrrrl (Original post)

Sun Feb 5, 2012, 07:50 PM

5. Do you think this guy will be "spitzered"?

Or show up suicided with 20 stab wounds in the back?

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Response to dixiegrrrrl (Original post)

Sun Feb 5, 2012, 08:59 PM

6. I would love the AG in CT to follow his lead

... I don't think I'll hold my breath, though.

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Response to dixiegrrrrl (Original post)

Sun Feb 5, 2012, 09:39 PM

7. I just hope he can avoid the temptation of a pro

especially an underaged one, but any pro across the state line will do.

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