MERS: A FAILED ATTEMPT AT BYPASSING STATE AND FEDERAL AUTHORITY
Posted on September 7, 2011 by Neil Garfield
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Fannie-Freddie’s Hypocritical Suit Against Banks Making Loans that GSEs Helped Create
EDITOR’S NOTE: Practically everything that the government is doing with respect to the economy and the housing market in particular is hypocritical. If we look to the result to determine the intent of the government you can see why nothing is being done to improve DOMESTIC market conditions. By removing the American consumer from the marketplace (through elimination of available funds in equity, savings or credit) the economic prospects for virtually every marketplace in the world is correspondingly diminished. The downward pressure on economic performance worldwide creates a panic regarding debt and currency. By default (and partially because of the military strength of the United States) people are ironically finding the dollar to be the safest haven during a bad storm.The result is that the federal government is able to borrow funds at interest rates that are so low that the investor is guaranteed to lose money after adjusting for inflation. The climate that has been created is one in which investors are far more concerned with preservation of capital than return on capital. In a nutshell, this is why the credit markets are virtually frozen with respect to the average potential consumer, the average small business owner, and the average entrepreneur or innovator who would otherwise start a new business and fuel rising employment.While it is true that the lawsuits by Fannie and Freddie are appropriate regardless of their past hypocritical behavior, they are really only rearranging the deck chairs on the Titanic. Ultimately there must be a resolution to our current economic problems that is based in reality rather than the power to manipulate events. The scenario we all seek would cleanup the rising title crisis, end the foreclosure crisis, and restore a true marketplace in the purchase and sale of real estate. We have all known for decades that the housing market drives the economy.There is obviously very little confidence that the government and market makers in the United States are going to seek any resolution based in reality. Therefore while investors are parking their money in dollars they are also driving up the price of gold and finding other innovative ways to preserve their wealth. As these innovations evolve it is almost certain that an alternative to the United States dollar will emerge. The driving force behind this innovation is the stagnation of the credit markets and the world marketplace. My opinion is that the United States is pursuing a policy that virtually guarantees the creation of a new world reserve currency.The creation of MERS was a private attempt to substitute private business plans for public laws. It didn’t work. The lawsuits by the government-sponsored entities together with lawsuits from investors who were duped into being lenders and homeowners who were duped into being borrowers in a rigged market are only going to result in money judgments and money settlements. With a nominal value of credit derivatives at over $600 trillion and the actual money supply at under $50 trillion there is literally not enough money in the world to fix this problem. The problem can only be fixed by recognizing and applying existing law to existing transactions.This means that MERS, already discredited, must be treated as a nonexistent entity in the world of real estate transactions. Nobody wants to do that because the failure to disclose an actual creditor on the face of a purported lean or encumbrance on land is a fatal defect in perfecting the lien. This is true throughout the country and it is obvious to anyone who has studied real property transactions and mortgages. If you don’t have the name and address of the creditor from whom you can obtain a satisfaction of mortgage, then you don’t have a mortgage that attaches to the land as a lien. It is this realization that is forming a number of lawsuits from the investors who advanced money for mortgage bonds. Those advances were the funds that were used to finance pornographic Wall Street profits with the balance used to fund absurd mortgage products.This is basic property law and public policy. There can be no confidence or consistency in the marketplace without a buyer or a lender knowing that they can rely upon the information contained in a government title Registry at the county recording office. Any other method requires them to take the word of someone without the authority of the government. This is a fact and it is the law. But the banks are successfully using politics to sidestep the basic essential elements of law. Under their theory the fact that the mortgage lien was never perfected would be ignored so that bank and non-bank institutions could become the largest landholders in the country without ever having spent a dime on loaning any money or purchasing the receivables. Politics is trumping law.The narrative and the debate are being absolutely controlled by Wall Street interests. We say we don’t like what the banks did and many say they don’t like banks at all. But it is also true that the same people who say they don’t like banks are willing to let the banks keep their windfall and make even more money at the expense of the taxpayer, the consumer and the homeowner. There are trillions of dollars available for investment in business expansion, government projects, and good old American innovation to drive a healthy economy. It won’t happen until we begin to drive the debate ourselves and force government and banking to conform to rules and laws that have been in existence for centuries.
from STOP FORECLOSURE FRAUD…………….
Lets NOT forget both Fannie and Freddie, like most of the named banks they are suing, each are shareholders of MERS.
Again, who gave the green light to eliminate the need for assignments and to realize the greatest savings, lenders should close loans using standard security instruments containing “MOM” language back in April 26, 1999?
This was approved by Fannie Mae and Freddie Mac which named MERS as Original Mortgagee (MOM)!
Open Market-
“U.S. is set to sue dozen big banks over mortgages,” reads the front-page headline in today’s New York Times. The “deck” below the headline explains that that the Federal Housing Finance Agency, which oversees the government-sponsored enterprises Fannie Mae and Freddie Mac, is “seen as arguing that lenders lacked due diligence” in the loans they made.
A more apt description would probably be that Fannie and Freddie are suing the banks for selling them the very loans the GSEs helped designed and that government mandates encourage — and are still encouraging them to make. These conflicted actions are just one more of the government’s contributions to the uncertainty that is helping to keep unemployment at 9 percent.
Strangely the author of the Times piece, Nelson Schwartz, ignores the findings of a recent blockbuster
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Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor,Mortgage, securities fraud Tagged: | 17 Firms, Ally Financial, Bank of America, bankruptcy,Barclays, borrower, Citigroup, countrywide, Credit Suisse, DEUTSCHE BANK, disclosure, Fannie,Fannie MAe, Federal Housing Finance Agency, FHFA, first franklin, First Horizon, foreclosure,foreclosure defense, foreclosure fraud, foreclosure offense, foreclosures, fraud, Freddie,Freddie Mac, General Electric, Goldman Sachs, HSBC, JPMorgan Chase, lawsuits, LOAN MODIFICATION, MBS, Merrill Lynch, MERS, modification, Morgan Stanley, mortgage backed securities, Nomura Holding America, quiet title, REMICS, rescission, RESPA, securities fraud,securitization, Societe Generale, The Royal Bank of Scotland PLC, TILA audit, trustee, WEISBAND
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Second, once all proprietary “records” are finally divulged, subprime refinancing fraud is exposed — game over for those who are still trying to making a buck on the fraud.
Third, the securitization of fraudulent “collection rights” — was a scam from the onset — never MBS — get your heads out of MBS — these “refinances” (not actually refinances) — were “loans” REJECTED from traditional MBS — credit enhancement was created from layers of mezzanine tranches for credit default swaps — (purchase of collection rights) — and were NEVER secured mortgages. This is what caused the financial crisis FALL. Understand that subprime securization was manufactured securitization fraud.
Fourth — the direction in courts — has been fraud upon the court — over and over — and, this is finally surfacing. There was no “funding” — PERIOD. —- All that existed was a purchase of collection rights from GSEs — by which “purchase” was covered by insurance for fabricated default and rejects.
Fifth — if you want to say that any borrower is responsible for any non-”funded” loan — that fabricated “funded” loan is unsecured — because there was NO VALID MORTGAGE.
Sixth — There is NO lender. NO LENDER. NO FUNDING — NO MORTGAGE — Just your good “ole” debt buyer shyster — for unsecured fraudulent collection rights.
If anyone hear chooses to think otherwise — you are — and have been — barking up the WRONG tree — and not battling the battle that needs to be fought. You are, instead, feeding the “investors” to falsified collection rights — and giving credibility to a loan that is not a loan — and not a mortgage. You are feeding the homeowners to “wolf” debt buyer “investors” — as they prefer to be called.
Proof?? in the mortgage data base proprietary files.
usedkarguy — BELIEVE IT. Wild ride?? Only starting. Magic carpet is not with debt buyer “friends” —–
As amended by Pub. L. 109-351, §§ 801-02, 120 Stat. 1966 (2006)
(a) COMMUNICATION WITH THE CONSUMER GENERALLY. Without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer in connection with the collection of any debt—
If I only knew what I know now, then, I may not be in foreclosure court paying a lot more money to in effect do the same dispute that the lawsuit is not valid – the debtor does not have Standing.
As amended by Pub. L. 109-351, §§ 801-02, 120 Stat. 1966 (2006)
§ 801. Short Title
This title may be cited as the “Fair Debt Collection Practices Act.”
15 USC 1601 note