NY's Schneiderman sues banks in foreclosure effort
NY's Schneiderman sues banks in foreclosure effort
ALBANY, N.Y. New York's attorney general on Friday accused some of the nation's largest banks of deceit and fraud in using an electronic mortgage registry that he said puts homeowners at a disadvantage in foreclosures.
Democrat Eric Schneiderman sued Bank of America, J.P. Morgan Chase and Wells Fargo over their use of the Mortgage Electronic Registration Systems Inc., or MERS, claiming the banks submitted court documents containing false and misleading information that appeared to provide the authority for foreclosures when there was none.
The lawsuit also names the registry operator, MERSCORP Inc. of Virginia.
Schneiderman claims the MERS system has eliminated homeowners' ability to track property transfers through traditional public records. He said the electronic system now stores that data and is plagued by inaccuracies.
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http://online.wsj.com/article/AP49a5ae2893f744cf99dc2f4fe9a52137.html
annabanana
(52,791 posts)ms.smiler
(551 posts)Homeowners, as well as the general public and the courts, do not have access to the vast majority of information maintained on the MERS system, including records reflecting the sale of mortgage loans from one financial institution to another.
Oh, my attorney and I know the above well; MERS wont disclose loan information even with a Subpoena.
Yes, privatized and secret land records MERS, does a splendid job of concealing the chain of Title and loan ownership from homeowners and our courts. The banksters prefer to hide their records so they can eventually use our public land records to file fraudulent Assignments of Mortgage in favor of themselves.
Mortgage securitization and MERS has clouded the Titles to millions of properties in the U.S.
YvonneCa
(10,117 posts)...insurance companies are so quiet on this?
ms.smiler
(551 posts)They were part of the formation of MERS and yet they have a liability because of the conduct of the banks and MERS.
Ive heard that Title policies are now written to permit Title insurers an out but havent researched present day policies so Ive seen nothing with my own eyes.
I wouldnt be surprised though if Title companies sought a reason to deny claims.
YvonneCa
(10,117 posts)...response. I didn't know that they were involved in forming MERS, but that makes sense to me. I once...many years ago...worked in a 'low level' tiltle job and learned just enough to think they had to have some liability in all this. After all, they insure that grantors actually own the property in an owner's policy, and they insure that the lender holds the note in a lenders policy. That's why people pay for those policies in the first place.
The creation of a system like MERS complicates their role considerably. And I imagine that different states have different laws and rules related to TD assignments and real estate sale/loans.
What a mess!
like a James Baker III scheme...MERS.