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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsSchneiderman Sues Three Big Banks, MERS for Deceptive Practices, Illegal Foreclosures
This is also a total attack on MERS. The suit alleges (according to this release) that MERS was created specifically to allow banks to skirt county recording fees on their voluminous mortgage transfers. And it explains how MERS operates outside the law by becoming the nominal mortgagee of the loans on its database for public records, and how it allows 20,000 certifying officers in a company of 70 employees to act on its behalf in foreclosure executions and other filings. This has been a sewer from the beginning, and I dont see how you fix this crisis without completely and totally disbanding MERS.
I like this part from the release:
The lawsuit cites 13,000 different instances of MERS listing itself as the plaintiff in foreclosure cases when they lacked the legal standing to foreclose. And it cites countless other cases where the MERS certifying officers submitted foreclosure documents to state courts with legal defects and misrepresentations. MERS indiscriminate use of non-employee certifying officers to execute vital legal documents has confused, misled, and deceived homeowners and the courts and made it difficult to ascertain whether a party actually has the right to foreclose, says the release. This is a big deal.
Schneiderman seeks injunctive relief as well as damages for homeowners harmed by MERS, which reaches into the thousands of New York State. And then theres this curious line: The lawsuit also seeks a court order requiring defendants to take all actions necessary to cure any title defects and clear any improper liens resulting from their fraudulent and deceptive acts and practices. I dont know how that gets done; perhaps this is the equitable mortgage process whereby new title is created through a massive write-down of the unsecured debt.
http://news.firedoglake.com/2012/02/03/schneiderman-sues-three-big-banks-mers-for-deceptive-practices-illegal-foreclosures/
I like this part from the release:
MERS conduct, as well as the servicers use of the MERS System, has resulted in the filing of improper New York foreclosure proceedings, undermined the integrity of the judicial process, created confusion and uncertainty concerning property ownership interests, and potentially clouded titles on properties throughout the State of New York. In fact, several New York judges have questioned the standing of the foreclosing party in cases involving MERS loans and the validity of mortgage assignments executed by MERS certifying officers.
The lawsuit cites 13,000 different instances of MERS listing itself as the plaintiff in foreclosure cases when they lacked the legal standing to foreclose. And it cites countless other cases where the MERS certifying officers submitted foreclosure documents to state courts with legal defects and misrepresentations. MERS indiscriminate use of non-employee certifying officers to execute vital legal documents has confused, misled, and deceived homeowners and the courts and made it difficult to ascertain whether a party actually has the right to foreclose, says the release. This is a big deal.
Schneiderman seeks injunctive relief as well as damages for homeowners harmed by MERS, which reaches into the thousands of New York State. And then theres this curious line: The lawsuit also seeks a court order requiring defendants to take all actions necessary to cure any title defects and clear any improper liens resulting from their fraudulent and deceptive acts and practices. I dont know how that gets done; perhaps this is the equitable mortgage process whereby new title is created through a massive write-down of the unsecured debt.
http://news.firedoglake.com/2012/02/03/schneiderman-sues-three-big-banks-mers-for-deceptive-practices-illegal-foreclosures/
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Schneiderman Sues Three Big Banks, MERS for Deceptive Practices, Illegal Foreclosures (Original Post)
phantom power
Feb 2012
OP
way to go - don't let the obama admin get away with its attempts to let predators off the hook nt
msongs
Feb 2012
#1
If I were advising any of these folks, banks named in suit, MERS, I would tell them...
stevenleser
Feb 2012
#6
msongs
(67,420 posts)1. way to go - don't let the obama admin get away with its attempts to let predators off the hook nt
tabatha
(18,795 posts)4. He works for Obama
"co-chair of the federal task force looking into the residential mortgage-backed securities market" for this explicit reason.
jaxx
(9,236 posts)5. President Obama appointed AG Schneiderman to the special unit.
Announced in the SOTU speech.
stevenleser
(32,886 posts)2. I keep telling folks, Schneiderman is the real deal.
I've met him several times. He is not the one to mess with.
phantom power
(25,966 posts)3. MERS is the lynchpin
Pull the plug on that and you pull the plug on the entire fraudulent MBS industry. I assume it would also expose once and for all how the proper paper trail for mortage ownership has evaporated since MERS came into existence.
stevenleser
(32,886 posts)6. If I were advising any of these folks, banks named in suit, MERS, I would tell them...
go to Schneiderman hat in hand and beg for mercy and settle.