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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One More Nail Driven Into The Coffin of MERS


April 2, 2010 by admin · Leave a Comment 


Fannie Bars Foreclosure Actions in the Name of MERS

Carrie Bay

In new policy guidelines released this week, Fannie Mae told servicers that they can no longer name MERS as the plaintiff in any foreclosure action, whether judicial or non-judicial, on a mortgage loan owned or securitized by the GSE.

MERS is widely used by the industry to keep track of the servicing rights on home loans. In fact, the top 100 mortgage originators and servicers employ the system. Its repository includes information on over 60 million home loans electronically registered by lenders.

MERS was created to be a paperless property registry to facilitate the quick transfer of mortgages between lenders and the inclusion of the loans in mortgage-backed securities, and in certain jurisdictions, MERS has the authority to initiate foreclosures on properties listed in its registry.

MERS is often designated as the “mortgagee of record” as a nominee of the actual mortgage holder. The service was designed to get around the slow and clumsy process of recording deeds at a county registrar and is similar to a broker serving as stockholder of record for a client.

But the system has become the centerpiece of a number of lawsuits, with foreclosed homeowners challenging the naming of the electronic system as mortgagee.

Fannie Mae stated in its new servicing guidelines that when MERS is listed as the mortgagee of record, the servicer must prepare a mortgage assignment transferring the position from MERS back to the servicer, and then bring the foreclosure in its own name.

In the event that the GSE requires the foreclosure be brought in the name of Fannie Mae, the servicer must conduct that transfer assignment as well. In all cases, the assignment from MERS to the servicer or Fannie Mae must be recorded before the foreclosure begins.

“Fannie Mae will not reimburse the servicer for any expense incurred in preparing or recording an assignment of the mortgage loan from MERS to the servicer or to Fannie Mae,” the guidelines read.

Since 2006, Fannie Mae has required servicers to file foreclosure actions in their own name in judicial states where proceedings take place in the courtroom, such as Florida, Illinois, and New York.

Beginning May 1, 2010, Fannie is adding that same stipulation to foreclosure petitions in non-judicial states, such as California, Massachusetts, and Texas, which allow lenders to foreclose without involving the courts.

See the new GSE guidelines here:
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connect the dots
this pronouncement by fnma is the death and burial of mers. the only reason for its creation was for the benefit of fnma.

mers is now dead and buried---- lets now get on to other issues. 
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Oh, Fannie had lots of help in creating this Frankenstein organization and was not the only one to benefit from MERS. Who loses? We all do.

I am going to keep pushing this issue until every person who visits this forum understands it because there have already been far too many foreclosures done in the the name of this legally powerless entity-MERS...or until I hear this mutant b@st@rd of a company has closed its doors for good-the sooner, the better.

It is absolutely infuriating that the entire world has been shoved into pain over the antics of very few "banking titans" [AKA "greedy soulless selfish pigs"]. Personally, I resent the heck out of it and would gladly see a select few hanged as examples. It probably took less than 1,500 people to conspire to bring the entire global economy to its knees and we all need to know who they are.

The main reason to be aware of MERS is that it has created a climate where no one really knows who owns anything in America. Getting clear title to any property that has MERS listed as nominee is apt to be a long arduous road for many years to come. People house shopping right now need to know that they may be challenged in the future due to these MERS shenanigans. There may be no way to EVER obtain a clear title on some homes.

MERS - Mortgage Electronic Registration Inc. - holds approximately 60 million American mortgages and is a Delaware corporation whose sole shareholder is Mers Corp. MersCorp and its specified members have agreed to include the MERS corporate name on any mortgage that was executed in conjunction with any mortgage loan made by any member of MersCorp.

Thus in place of the original lender being named as the mortgagee on the mortgage that is supposed to secure their loan, MERS is named as the “nominee” for the lender who actually loaned the money to the borrower. In other words MERS is really nothing more than a name that is used on the mortgage instrument in place of the actual lender. MERS’ primary function, therefore, is to act as a document custodian.

MERS was created solely to simplify the process of transferring mortgages by avoiding the need to re-record liens – and pay county recorder filing fees – each time a loan is assigned. Instead, servicer's record loans only once and MERS’ electronic system monitors transfers and facilitates the trading of notes. It has very conservatively estimated that as of February, 2010, over half of all new residential mortgage loans in the United States are registered with MERS and recorded in county recording offices in MERS’ name

MersCorp was created in the early 1990’s by the former C.E.O.’s of Fannie Mae, Freddie Mac, Indy Mac, Countrywide, Stewart Title Insurance and the American Land Title Association. The executives of these companies lined their pockets with billions of dollars of unearned bonuses and free stock by creating so-called mortgage backed securities using bogus mortgage loans to unqualified borrowers thereby creating a huge false demand for residential homes and thereby falsely inflating the value of those homes. MERS marketing claims that its “paperless systems fit within the legal framework of the laws of all fifty states” are now being vetted by courts and legal commentators throughout the country.

The MERS paperless system is the type of crooked rip-off scheme that is has been seen for generations past in the crooked financial world. In this present case, MERS was created in the boardrooms of the most powerful and controlling members of the American financial institutions. This gigantic scheme completely ignored long standing law of commerce relating to mortgage lending and did so for its own personal gain.

That the inevitable collapse of the crooked mortgage swindles would lead to terrible national repercussions was a matter of little or no interest to the upper levels of America’s banking and financial world because the only interest of these entities was to grab the money of suckers, keep it in the form of fictitious bonuses, real estate and very large accounts in foreign banks. The effect of this system has led to catastrophic meltdown on both the American and global economy.

MERS, as has clearly been proven in many civil cases, does not hold any promissory notes of any kind. A party must have possession of a promissory note in order to have standing to enforce and/or otherwise collect a debt that is owed to another party. Given this clear-cut legal definition,  MERS does not have legal standing to enforce or collect on the over 60 million mortgages it controls and no member of MERS has any standing in an American civil court.

MERS has been taken to civil courts across the country and charged with a lack of standing in reposession issues. When the mortgage debacle initially, and inevitably, began, MERS always routinely brought actions against defaulting mortgage holders purporting to represent the owners of the defaulted mortgages but once the courts discovered that MERS was only a front organization that did not hold any deed nor was aware of who or what agencies might hold a deed, they have routinely been denied in their attempts to force foreclosure. 

In the past, persons alleging they were officials of MERS in foreclosure motions, purported to be the holders of the mortgage, when, in fact, they not only were not the holder of the mortgage but, under a court order, could not produce the identity of the actual holder. These so-called MERS officers have usually been just employees of entities who are servicing the loan for the actual lender. MERS, it is now widely acknowledged by the courts, has no legal right to foreclose or otherwise collect debt which are evidenced by promissory notes held by someone else.

The American media routinely identifies MERS as a mortgage lender, creditor, and mortgage company, when in point of fact MERS has never loaned so much as a dollar to anyone, is not a creditor and is not a mortgage company. MERS is merely a name that is printed on mortgages, purporting to give MERS some sort of legal status, in the matter of a loan made by a completely different and almost always,a totally unknown entity.

The infamous collapse of the American housing bubble originated, in the main, with one Angelo Mozilo, CEO of the later failed Countrywide Mortgage.

Mozilo started working in his father’s butcher shop, in the Bronx, when he was ten years old. He graduated from Fordham in 1960, and that year he met David Loeb. In 1968, Mozilo and Loeb created a new mortgage company, Countrywide, together. Mozilo believed the company should make special efforts to lower the barrier for minorities and others who had been excluded from homeownership. Loeb died in 2003

In 1996, Countrywide created a new subsidiary for subprime loans.  Countrywide Financial’s former management

  • Angelo R. Mozilo, cofounder, chairman of the board, chief executive officer
  • David S. Loeb, cofounder, President and Chairman from 1969 to 2000
  • David Sambol, president, chief operating officer, director
  • Eric P. Sieracki, chief financial officer, executive managing director
  • Jack Schakett, executive managing director, chief operating officer
  • Kevin Bartlett, executive managing director, chief investment officer
  • Andrew Gissinger, executive managing director, chief production officer, Countrywide Home Loans[14]
  • Sandor E. Samuels, executive managing director, chief legal officer and assistant secretary
  • Ranjit Kripalani, executive managing director and president, Capital Markets
  • Laura K. Milleman, senior managing director, chief accounting officer
  • Marshall Gates, senior managing director, chief administrative officer
  • Timothy H. Wennes, senior managing director, president and chief operating officer, Countrywide Bank FSB
  • Anne D. McCallion, senior managing director, chief of financial operations and planning
  • Steve Bailey, senior managing director of loan administration, Countrywide Home Loans

The standard Countrywide procedure was to openly solicit persons who either had no credit or could not obtain it, and, by the use of false credit reports drawn up in their offices, arrange mortgages. The new home owners were barely able to meet the minimum interest only payments and when, as always happens, the mortgage payments are increased to far, far more than could be paid, defaults and repossessions were inevitable.

Countrywide sold these mortgages to lower-tier banks which in turn, put them together in packages and sold them to the large American banks. These so-called “bundled mortgages” were quickly sold by these major banking houses to many foreign investors with the comments that when the payments increased, so also would the income from the original mortgage. In 1996, Countrywide created a new subsidiary for subprime loans.

At one point in time, Countrywide Financial Corporation was regarded with awe in the business world. In 2003, Fortune observed that Countrywide was expected to write $400 billion in home loans and earn $1.9 billion. Countrywide’s chairman and C.E.O., Angelo Mozilo, did rather well himself. In 2003, he received nearly $33 million in compensation. By that same year, Wall Street had become addicted to home loans, which bankers used to create immensely lucrative mortgage-backed securities and, later, collateralized debt obligations, or C.D.O.s—and Countrywide was their biggest supplier. Under Mozilo’s leadership, Countrywide’s growth had been astonishing.

He was aiming to achieve a market share—thirty to forty per cent—that was far greater than anyone in the financial-services industry had ever attained. For several years, Countrywide continued to thrive. Then, inevitably, in 2007, subprime defaults began to rocket upwards , forcing the top American bankers to abandoned the mortgage-backed securities they had previously prized. It was obvious to them that the fraudulent mortgages engendered by Countrywide had been highly successful as a marketing program but it was obvious to everyone concerned, at all levels, that the mortgages based entirely on false and misleading credit information were bound to eventually default. In August of 2007, the top American bankers cut off Countrywide’s short-term funding which seriously hindered its ability t
o operate, and in just a few months following this abandonment,  Mozilo was forced to choose between bankruptcy or selling out to the best bidder.

In January, 2008, Bank of America announced that it would buy the company for a fraction of what Countrywide was worth at its peak. Mozilo was subsequently named a defendant in more than a hundred civil lawsuits and a target of a criminal investigation.  On June 4th, 2007 the S.E.C., in a civil suit, charged Mozilo, David Sambol, and Eric Sieracki with securities fraud; Mozilo was also charged with insider trading. The complaint formalized a public indictment of Mozilo as an icon of corporate malfeasance and greed.

In essence, not only bad credit risks were used to create and sell mortgages on American homes that were essentially worthless. By grouping all of these together and selling them abroad, the banks all made huge profits. When the kissing had to stop, there were two major groups holding the financial bag. The first were the investors and the second were, not those with weak credit, but those who had excellent credit and who were able, and willing to pay off their mortgages.

Unfortunately,  just as no one knows who owns the title to any home in order to foreclose, when the legitimate mortgage holder finally pays off his mortgage, or tries to sell his house, a clear title to said house or property cannot ever be found so, in essence, the innocent mortgage payer can never own or sell his house. This is a terrible economic time bomb quietly ticking away under our feet and if, and when, it explodes, another aspect of our former lives are but a fond memory.

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Yes, but what is happening now is that MERS is recording an assignment of mortgage to the current servicer and about a week later the current servicer files the foreclosure complaint.  So it only delays it a tiny bit. 

What I find absolutely sickening is that the lender's attorney in our case signed the assignment of mortgage.  It states that he is Assistant Secretary and Vice President.  How can he , who is defending the plaintiff,  sign a legal document and have it notarized ?    Isn't this illegal ?  Or at best, conflict of interest ?

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     After studying dozens of cases where MERS is listed as the "nominee" of
the mortgagee, I have come to the conclusion that Mozilo and the other organized crime figures who created the predatory, subprime mortgage mess,
did it to prevent the "borrowers" from ever winning the "death gamble" which
is an intrinsic feature of every "mort-gage".
     "Mort-gage" in French means "death-gamble". Gager=to gamble and a "gage" is a wager or bet. It works like this, if a borrower were to pay into a
"mort-gage" for 20 years, and achieve 90% equity, and then suddenly die,
the lender could demand the 10% due from the heirs within 30-60 days. If
not paid, the lender could foreclose and obtain the equity of the dead borrower. One sees this alot in probate Court. It is a major profit center for
lenders. This is why criminal background checks and licensing is required for
a mortgage lender. Historicly, unscroupulous lenders have been known to
"cheat" on the "death gamble" by causing the "mysterious" demise of a borrower with lots of "equity" in a valuable property.
      The "flip side" of the "gage" or bet, is that if the lender "dies" ie gets
dissolved, without having "lawfully" transferred the Note and mortgage, then
the borrower wins the "death gamble" and gets the equity of the lender,
because there no longer exists a lawful entity to whom the debt is owed.
       Many borrowers won the "death gamble" in the 1930's when banks were
going down like ten pins. It happened again during the "Savings & Loan" crisis
of the early 90s. It is happening right now because of all the lenders, like
Countrywide, which made bad loans and went under due to their own stupidity and greed.
      MERS is being used to take the place of the "dead" lender and steal the
"death gamble" winnings of the borrowers in those transactions. That is the
true reason for its existence, ie to make sure there will be someone to prevent the borrower from realizing he/she was in a "death-gamble" and won!
      Wall Street is often called "Las Vegas" East, and that is exactly what it
is. It is all about gambling with "OPM", other peoples money. When they win,
they win big, but when they lose, they pass the losses on to the taxpayer.
"Death-gambles" ie "mort-gages" have always been part of the gaming on
Wall Street.
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MERS is not a owner of the notes and mortgage, it cannot assign note and mortgage to sevicer. Servicer can't foreclose. Check with your attorney.

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In NY, they can and have many times over.

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The State of Tennessee filed a lawsuit on 4/28/2010 against MERS, Countrywide, Bank of America, et al for lost revenue over the past 10 years where the state and counties were defrauded because assignments etc for land transfer were not recorded with the county recordation offices!!!

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I am very much interested in speaking with arkygirl. It seems as if she has significant knowledge about countrywide which may be helpful in federal and state litigation I have going on in California.

If you want to speak and have a potential flight to California Bay Area email me at and mention your writing posted here.
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