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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This was posted by Neil Garfield over at livinglies, pretty scary stuff if it goes through.  We need to make sure it does't pass!!!!!

After years of negative judicial decisions about the use of a straw-man on mortgages, MERS was about to lose its existence as well as its credibility. But now all of that is set to change as Wall Street money is pouring into the coffers of those who are receptive (i.e., almost everyone in Congress). The legislation is already being drafted under the interstate commerce clause to ratify MERS and everything it did retroactively. It appears that the Obama administration is ready to pardon all the securitization deviants by signing this bill into law. This information is corroborated by several people who are in sensitive positions — persons who would be the first to know such proposals. Fortunately, there are some people in Washington who have a conscience and do not want to see this happen.

Besides the obvious seediness of this maneuver, it runs roughshod over state property laws, and the rights of investors, homeowners and borrowers. It amounts to a permanent installation of a Federal system that supersedes the county records for recording property rights. Off-record comments I’ve heard from people in power are outraged at this assault on states’ rights. But these people are not legislators, who are getting promises larger than anything in your imagination, if they will support such a bill. It might be couched as a uniform law to be adopted by the states to get around the states rights issues, but it will permanently remove some of the power over property that lies solely within the jurisdiction of the states and place it preemptively within federal jurisdiction.

All of this is scheduled to happen during the lame duck session of congress between now and the end of the this year, 2010. That means in a manner of days, some bill that may look like it has nothing to do with property, mortgages or foreclosures is going to have attached to it a provision whose effect will go even further than the notarization bill that went through Congress like S–t through a goose and almost got signed by the President. We caught that one AFTER it was passed by Congress unanimously but before Obama signed it.

We announced it as an attempt at a presidential pardon to all those who committed crimes in the notarization of documents that were fabricated and forged, all those who committed forgery and perjury and all those who created counterfeit documentation that was presented to courts as original documents.

This time we got the information, we think, before it was stitched into some innocuous looking bill.  If we don’t find it and block it, the plight of homeowners will get that much worse

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anon

what bill is it?

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Not so fast!! We want our money. The banks defrauded the government. The banks defrauded all of us.

I want our money and I want it NOW!

Bypassing county fees may cost banks

        By CURT ANDERSON and MICHELLE CONLIN, Associated Press • November 10, 2010

        NEW YORK — It used to be that every time a bank sold a mortgage, the county land recording office received a fee. It wasn't much — $30 or so — but then real estate boomed in the 1990s and banks pooled millions of mortgages into securities that investors bought and sold.

One mortgage transaction became a dozen or more, and the tab grew ever larger. So the banks came up with a way around the fees. And now they are fighting to avoid perhaps tens of billions of dollars in penalties that have added up over the years.

In 1997, when the banks' burgeoning business in mortgage securities was clashing with the unwieldy nature of written forms, the industry created its own alternative, an electronic system that would track the ever-changing ownership of home loans.

The banks formed a private company called Mortgage Electronic Registry Systems Inc., or MERS. Its motto: "Process loans, not paperwork." It has registered more than 65 million loans, three out of every five on the market.

MERS' owners are all the big mortgage companies, including Bank of America, Citigroup, Wells Fargo, JPMorgan Chase and GMAC. They are all facing a foreclosure-fraud investigation launched by all 50 state attorneys general, and all took government bailout money after the financial meltdown in 2008.

Counties complained about the lost revenue after MERS was implemented, but they rarely tried to challenge the new way of doing business. Now, three years after the housing crash and two months after allegations that some banks submitted fraudulent documents to foreclosure courts, every aspect of the nation's mortgage machine is under scrutiny.

Two lawyers in Reno, Nev., have filed suit in 17 states alleging that banks cheated counties out of billions of dollars. In Virginia, a lawmaker has asked the state's attorney general to investigate MERS over its failure to pay recording fees. And everywhere elected officials and class-action lawyers turn, the back-office procedures of MERS are being called into question.

The lawsuits challenge MERS' authority to act on behalf of banks or other investors that own a mortgage. With so many loans registered to MERS, it's a claim that goes to the heart of the mortgage-fraud scandal.

With MERS ostensibly keeping track of who owns what, counties still get their paperwork and fees the first time a mortgage is filed. Typically, that county fee is rolled into the closing costs homeowners pay when they buy a new home.

MERS is "an admitted fee-avoidance scheme," says Robert Hager, the Nevada lawyer who, along with his partner Treva Hearne, is filing the suits against MERS and its bank owners, including the government-backed mortgage-finance companies Fannie Mae and Freddie Mac. Fannie and Freddie provide a low-cost flow of funding to the nation's mortgage markets by buying mortgages from lenders, packaging them into securities and then selling them to investors.

The suits were filed in California, Nevada and Tennessee and 14 undisclosed states where the cases are still under court seal. Hager and Hearne chose the states because their laws allow what are called false claims suits, in which citizens can take legal action against companies that may have cheated the government.

Much more here:

http://beta.delawareonline.com/article/20101110/BUSINESS/101110034/Bypassing+county+fees+may+cost+banks

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for all you great researchers out there - research TEFRA parts C and D.

Under TEFRA, bearer paper transferred into a trust where a bond or certificate is issued is required to pay  in excise taxes 1% of the amount of the note multiplied by the term of the note.  In other words, if you have a $200k 30 year note, you are obligated to pay to the IRS in excise taxes the amount of $60k at closing.

Now, multiply this amount by the 62 million or so mortgages tracked on the MERS system and the amount owed Uncle Sam eclipses $3 trillion.  

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congress is prohibited from passing ex post facto laws by Article I Section 9 clause 3 of the U.S. Constitution 

an ex post facto law  or retroactive law, is a law that retroactively changes the legal consequences  of actions committed  that existed prior to the enactment of the law


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