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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I found a comment on Matt Weidner's blog that added another dimension to the MERS problem. I have seen agency law mentioned on blogs before, but I had never seen this easy-to-understand angle. I think defense simplicity could help with a judge who is trying to weigh both sides of the case.

Would a judge get this, even in their hurry to rubber stamp the avalanche of foreclosure cases?

Quote from Greg Clark March 2, 2010:

"My argument against the ethicacy of the MERS mortgage is founded on basic, longstanding principals of coveyancing law, agency law and mortgage law. Clearly, one person cannot sign a piece of paper and create an agency between two other non-signing parties. Only the debtor signed the mortgage....

"... Had the lender/note holder countersigned the mortgage at closing (as if a power of attorney) and had MERS interest, as putative holder of the mortgage, been clearly defined as “Agent with full authority and power to act in all matters as attorney in fact for lender” then at least one could argue that no real separation occured since an agent with full power is nothing more than an extention of his principal, the arm of the master.

"But MERS serves under grant from the Debtor, at the debtor’s behest. You see in this sense the debtor is the principal having appointed MERS to act as ambassador “nominee”. What’s more, the debtor only gave a limited role to MERS as mortgagee, as holder of the mortgage – which did not include the power to assign...."

Please add your comments and opinions.

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Just a note to add. When I read this quote, I didn't notice that the comment on the blog was from Greg Clark, the brilliant attorney Matt referred to in his initial post. Clark is a title attorney.
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