Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Knows About MERS
The recent decision of the Arkansas Supreme Court in the case seems to pretty much eviscerate the business franchise of Mortgage Electronic Registration Systems, Inc. (MERS) within the State of Arkansas.

The case is:

Mortgage Elec. Registration Sys. v. Southwest Homes of Ark., No. 08-1299, SUPREME COURT OF ARKANSAS, 2009 Ark. LEXIS 121, March 19, 2009, Opinion Delivered.

The case can be found online at:

http://courts.arkansas.gov/court_opinions/sc/2009a/20090319/published/08-1299.pdf


The case text is also available for free at the LexisOne web site at:

http://www.lexisone.com


Though registration is required to use the LexisOne site, registration is FREE and this site is a good place to find state and federal appellate decisions published within the past five years.

Ironically, the case is NOT about MERS standing at all.  Rather, it is about MERS' right to notice in consideration of its designation as "nominee" of the original lender.  The court correctly points out that a nominee is nothing more than an agent and the agent acts on behalf of the principal.  Since the principal -- the named Lender -- was in fact named and served, MERS could have no additional right to notice beyond that due the principal, who had defaulted.

In route to the decision, the Court notes that MERS is nothing more than the Lenders' agent:

"We specifically reject the notion that MERS may act on its own, independent of the direction of the specific lender who holds the repayment interest in the security instrument at the time MERS purports to act.  “[A]n agent is authorized to do, and to do only, what it is reasonable for him to infer that the principal desires him to do in the light of the principal’s manifestation and the facts as he knows or should know them at the time he acts.”  Hot Stuff, Inc. v. Kinko’s Graphic Corp., 50 Ark. App. 56, 59, 901 S.W.2d 854, 856 (1995) (citing Restatement (Second) of Agency § 33 (1958)).  Nothing in the record shows that MERS had authority to act.  Here, Pulaski Mortgage was the lender and MERS’s principal.  Pulaski Mortgage was a named party in the foreclosure action. Thus, MERS was not acting as the lender’s agent at the time it moved to set aside the decree of foreclosure."

The Court dismisses ANY pretense that MERS holds any independent rights separate from the owner of the indebtedness and the named trustee:

"MERS holds no authority to act as an agent and holds no property interest in the mortgaged land. It is not a necessary party.  In this dispute over foreclosure on the subject real property under the mortgage and the deed of trust, complete relief may be granted whether or not MERS is a party.  MERS has no interest to protect.  It simply was not a necessary party. See Ark. R. Civ. P. 19(a).  MERS’s role in this transaction casts no light on the contractual issues on appeal in this case.  See, e.g., Wilmans v. Sears, Roebuck & Co., 355 Ark. 668, 144 S.W.3d 245 (2004)."  

Note that if MERS has NO RIGHT TO NOTICE under Arkansas law, it CANNOT PROTECT ITS PRINCIPALS!  Anyone who sues and names the Lender and named trustee can obtain a judgment and complete relief!  ANY MORTGAGE INVESTOR WHICH LEAVES ITS UNRECORDED INTERESTS EXPOSED WITH MERELY THE NOMINAL INDICATION OF MERS AS NOMINEE RISKS ITS ENTIRE INTEREST IN A SUIT SIMILAR TO THE ONE DECIDED.  THE FIRST LIENHOLDER'S INTEREST WAS EXTINGUISHED BY THE SECOND LIENHOLDER'S SUIT AND THE MORTGAGE INVESTOR IS LEFT WITH AN UNSECURED DEBT AGAINST A DEFAULTED BORROWER WHO HAS ALREADY LOST HIS HOUSE!
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MERS is a snowball headed downhill into a fire and gaining speed every day.

Cervantes v. Countrywide/MERS et. al. (Federal District Court of Phoenix) will hopefully be the nail in the coffin.
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William A. Roper, Jr.

Since "Knows About MERS" posted this case announcement in April 2009, Google Scholar has also posted the Southwest Homes case.  The Google Scholar version has hyperlinks to the cited decisions:

 

http://scholar.google.com/scholar_case?case=12763802771752796019

 

This case can be cited as:

Mortgage Electronic Registration System, Inc. v. Southwest Homes of Arkansas, No. 08-1299, 301 S.W.3d 1 (Ark. 2009).

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William A. Roper, Jr.
See also these related message threads:

"MAJOR MERS DECISION KANSAS SUPREME COURT MERS HAS NO RIGHTS"

http://ssgoldstar.websitetoolbox.com/post?id=3671071


"Terrific New Indiana Decision Further Erodes MERS Franchise: CitiMortgage v. Barabas"

http://ssgoldstar.websitetoolbox.com/post?id=5264483

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FnDoomed
I'm arguing MERS agency in a couple of weeks with a few statements and a cite to the St Valentines Day massacre in Agard

Reading this thread it occurs to me to ask:

Is there a thread, or has somebody collected in one spot all of the MERS killer cases from each state?   This one makes AR.  I know of Landmark in KS.  I know there's one in ME.  etc

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