Dec 10 2010

The Title Fraud Smoking Gun

I’ll cut right to the chase.  What this means is that if you have financed or re-financed a home since 1999, you no longer have clear title to your property and nobody else does either.

If you own a Mortgage Backed Security it’s a worthless scrap of paper.

Municipal, County, and State Governments have been defrauded of $10s of Billions of legally obligated filing fees by the banksters.

Anatomy of Mortgage Fraud: MERS’s Smoking Gun, Part I

L. Randall Wray, The Huffingtom Post

December 9, 2010 06:04 PM

I think we have finally found the smoking gun. An interested reader alerted me to MERS’s instruction manual, “MERS Recommended Foreclosure Procedures — State by State”, originally written in 1999, updated in 2002 and available on MERS’s website (accessed by clicking on: Recommended Foreclosure Procedures).

The first thing to note is the date. Folks, this strategy was formulated in 1999. The second thing to note is these documents demonstrate that failure to properly endorse the notes and transfer them to the REMIC trustee was not an occasional mistake, but rather was MERS’s business model. As we will see, MERS planned from the get-go to defraud the counties, and the IRS, and the homeowners, and the buyers of the mortgage-backed securities.

The foreclosure manual establishes three key points that we have long suspected:

  1. Mortgage notes were not typically transferred to the trusts, as required by law. Further, there is no clear “chain of title” for these notes–which are actually presented for endorsement only on foreclosure (if then).
  2. MERS recommended that mortgage servicers retain the notes.
  3. MERS “deputized” employees of the servicers, pretending that these became MERS employees. This allowed the fiction that MERS had the notes so that it could foreclose.

In the document, MERS claims that its recommended procedures are “customary”. In fact, there are several hundred years of “custom” that requires endorsement of notes at the time of transfer, with a clear chain of title to ensure that anyone who claims to be a creditor, and who tries to seize someone’s home, has clear documentary proof of entitlement. What MERS proposes in this document is to break the chain of title, to eliminate the protection that debtors need to prevent mortgage servicers and MERS from illegally stealing their property through the use of robo-signers and the manufacture of fake documents. In other words, both law and custom were formulated to prevent the sort of foreclosure fraud that has become normal business practice — what the MERS document calls “customary”.

(I)f the servicers hold the notes, why on earth can’t they find them–why do they need to file “lost note affidavits”? In a word, fraud. If they now produce the notes, it will be clear that they were not properly endorsed each time the mortgages were transferred. And they were never held by the REMIC trusts. As I will explain, that means mortgage backed securities are fraudulent and the banks are on the hook for hundreds of billions of dollars. And that the banks holding the mortgages cannot legally foreclose. That is why they are destroying the documents, and hiring robo-signers to forge new ones.

Smoking Gun?  More like a Smoking Cannon.  Every one of the Too Big To Fail Banks is insolvent.

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