Identity Theft, Mers and Other Issues: Great Post from James


Henderson, Nevada
Editor’s Comment: At the heart of the entire mortgage meltdown is identity theft by the banks and investment banks. They take your identity, merge it with the identities of thousands of other people and sell it to investors under false pretenses leaving you holding the bag not knowing who to pay or if you still owe anything after the insurance, bailouts and cross collateralization.)

Who owns your house???
Forecasting the future of any market whether it’s real estate or the stock market requires good financial analysis and a little bit of luck. Not if you are on the MERS Bandwagon, the real estate market changes every the day…. Even the Past..

The Mortgage Electronic Registration System, asset backed securities and trustee deed foreclosures are the name of this game. First In………First Out………….! In Clark County Nevada, (Las Vegas) and Maricopa, Arizona, an average of five thousand documents are recorded every day. The two municipalities even brag about the ‘State of the Art’ of their recording technologies. Online, Anytime.. In Maricopa County you can view the Unofficial Documents to any public recording on line. If you want the official document, you will have to order it and they will mail it to you. Chances are, it’s not going to be the same document you viewed on line. Remember, it’s the unofficial recordings as opposed to the Official Recording. Good, but not as good as Clark County Public Recorders Office. They will record any document as long as the paperwork is filled out per their instructions. Public beware since they record documents back in the time as well. Recordings are posted back in time superseding or outright replacing what really happened. Once the transaction posts, its official. Hindsight is 20/20 and in Clark County, Nevada and Maricopa County, Arizona, the past is never really history since it could change tomorrow. Confused?? So was I until I researched the fraud that has perpetrated my life. Only after hiring professionals whom I paid to uncover and identify these fraudsters, did I realize how big this criminal network really is. The professionals came in and covered up the past fraud and set me up for another round of financial loss. Don’t think it affects you, check it out for yourself. You can find out by checking your assets online @ Your lender’s trustee has probably already foreclosed once on you at least once without your knowledge.

The scenario reflects my personal experience with Wells Fargo Bank over the last several years. After banking with them for over 16 years, I realized that I was a victim of identity theft, which was controlled and perpetrated by the bank.

On my search for my stolen identity, I discovered a ‘ring of fraud’ involving several reputable companies who I discover all are under the umbrella of Wells Fargo Bank. If the bank owns the mortgage company (Wells Fargo Home Mortgage) and is also the trustee for the loan (American Securities Company of Nevada) and the title companies (pick one), and the insurance company, the only thing they need to make a deal is the consumer. They issue one loan to the consumer and one to themselves. One is recorded in the county the property is located with the lender as the beneficiary; one is recorded with MERS with MERS as the beneficiary. Since the consumer only pays on the loan he signed up for, the second loan eventually goes into default because of non-payment, which activates the foreclosure process by the trustee. These non-judicial foreclosures are kept in-house and are only known about by the insiders (the MERS network). This includes the lenders, real estate brokers, lawyers and title companies and other criminals, all of whom are breaking the law. Three months later the non-judicial foreclosure takes place without public knowing about it. The trustee for the lender adds the outstanding debt on the second bogus loan to the bid price for the property. Since the bid is now 80% +(typical value of second loan) of the original appraisal, the lender is able to clear the first and second loan off their books and now owns the property. The owner never knows what has happened but technically, the real first loan and bogus second loan is cleared by right of the non-judicial foreclosure, the lender now owns the property free and clear and the owner becomes a renter. If someone other than the lender buys the foreclosure, they are issued a Substitution of Trustee and a Deed of Reconveyance from MERS (Mortgage Electronic Recording System). The payment for the foreclosure (generally the amount of the borrowers loan balance at the time) is the price of admission into the loan pool of funds. Instead of getting to take ownership of the foreclosure property, they now have an investor number and an investor loan number which puts them in the real estate investment trust and secures there position in line to collect. It’s a pyramid. First in………First Out……….There is always the title policy that is often time collected on by the group as well since most of the title policies issued pay the lender for the property because of unmarketable title either because of easements, restrictions or other title flaws that are placed on the property using DMS Order Management Software. The title company can pick a start date and a plant date to insert negative history on the property that never really happened but clouding the title so they can collect once the home has closed. These encumbrances are added to the property history after the preliminary title report is issued but before the property closes escrow. The public doesn’t know about any of this or else it would be anarchy. To add injury to insult, the government ends up paying for the fraud as well through RESPA, HUD claims and through a Federal Reserve bank account held by Wells Fargo unbeknownst to the Federal Government. The RESPA and HUD claims are made possible by keeping the limit of the transactions below the HUD insured thresholds. The Federal Reserve account is an retired payroll withholding account Wells Fargo was supposed to close when Bank of America took over payroll (EFTPS) withholding electronic transfers for the government in the early 90’s.

This country will not survive if the very people paid to properly transact and control the home buying process are double dipping. This is not an isolated case. It is happening everywhere. The only way to stop it is to make these institutions and their employees responsible for their actions. Because of the very nature of the fraud, the people in the network are not rookies. Most of them are educated professionals holding well paying, respectable jobs and position in their communities. Unfortunately, our local, state and federal government is infected with people that help facilitate the transactions of these fraudulent activities as well. The war is not in IRAQ. It is here in the United States. Where do you think the money goes? Hidden originally in a trust account that is not audited and then electronically transferred OFFSHORE. Out of the reach of our government. All tax-free. Money Laundering at the Speed of the Internet.

The situation is much like anything terrible that is this big. Eventually the truth will come out. How many years did it take for the Catholics to even admit there might be some truth to the sexual misconduct of the clergy? How many people had to lose their life savings in their retirement plans did it take for the public to find out about the accounting improprieties that Big Financial Houses were committing? How many people will have to die fighting a war half way around the world when the real war is right here in this country? It is time for the truth to be told and the cross collaterization of United States real estate to STOP. The future of our democracy is at stake. The alternative is nothing less than true Anarchy.

Mortgage Electronic Registration System
The Myth Exposed

The first time I heard the term “MERS” was in April 2003. Not one person I have asked since knows what it is even though a few people acknowledge hearing the term before. “MERS” is short for Mortgage Electronic Registration System. It has quickly become the single most threatening thing to Homeland Security along with the 9th Circuit Courts in the United States. Why? Simple, both MERS and the 9th Circuit Courts are being manipulated and used to commit fraud. Unfortunately, the uninformed public will be left to bear the burden if the insanity doesn’t end soon. In the case of MERS, when JQ public borrows money to buy a home, the lender takes a second loan for the exact same amount as well. Since the lender is generally a bank, as long as they can balance the collateral against their outstanding loan obligations, they take as much as they want. Effectively, doubling the consumer debt by 100% for each real estate transaction made in the United States today. The purchase contracts are written up on VPN contracts (Virtual Private Network) agreements, which look like a normal escrow form with VPN on the bottom left hand corner of each page. What the hell am I taking about? MERS………… Lets start at the beginning.

*Excerpt from CTA Federal Legislative and Regulatory Committee White Paper written by James E. Cornwall, Chairman (in italics)

In 1993, a ‘Whole Loan Book Entry White Paper’ was published jointly by the Mortgage Bankers Association of America, Fannie Mae, Freddie Mac, and Ginnie Mae. The paper outlined a concept for a national registry system for tracking mortgage loans. The original concept is now a reality and is known as MERS (Mortgage Electronic Registration System).

CTA’s involvement in MERS began in 1994 when they began monitoring various news releases concerning the subject of electronic loan registration. In November 1995, CTA hosted a MERS meeting, which was attended by approximately twenty-five of our members and featured Dr. Leilani Allen of Tenex Consulting, representing MERS.


MERS is an industry-owned electronic registry and clearinghouse that revolutionizes the way the mortgage market works by eliminating paper, and cutting the cost of the mortgage process. A loan registered with MERS will receive a permanent 18-digit mortgage identification number (MIN) as early as loan application. The MIN will be a loan’s identifier throughout the life of the loan, even if ownership or servicing rights are transferred. Currently, a lender records the mortgage or deed of trust with the County Recorder and this step will remain the same. In addition, an assignment will be recorded with the County Recorder reflecting MERS as the mortgagee of record. The MERS database will reflect the name of the actual owner of the loan.


In April 1996, MERS selected EDS of Plano, Texas as its official information technology partner to develop the systems needed to make MERS work. MERS also held its inaugural meeting of the MERS Advisory Council in April 1996. The Council is made up of representatives from the broader real estate finance industry that is not directly engaged in originating, funding or servicing mortgage loan. (CTA is a member of the Advisory Council)


On April 28th, MERS production software was delivered to its first users, Norwest Mortgage, Inc. and Allied Group Mortgage Company. Both companies were the first companies to register mortgages electronically with MERS, Paul Mullings, Chief Executive Officer of MERS, said ‘MERS represents the culmination of a dream that those of us in the mortgage industry have long had, and that is to transform our business through the cooperative application of advanced business process and technologies. Many have been skeptical about our chances of bringing the entire industry together to create something that would be beneficial to all parties involved.
To date, more than 130 entities, including mortgage companies, data processing companies and trustees have signed on to become part or MERS. Several CTA members, including First American Title Company, Stewart Title Company, Cal-Western Reconveyance Corporation and T.D. Service Financial Corporation are listed as MERS members.

I’m not sure if this “White Paper” is accurate or not. I found it on the Internet during my research of MERS. Assuming it is accurate, than why hasn’t anyone heard about MERS? According to their website, MERS recently celebrated its 20 million recording. Twenty million real estate loans recorded and no one’s ever heard of it. I will tell you what it is. It’s white-collar crime. It is greed orchestrated through the use of technology unregulated and gone wild. It’s E-commerce controlled by imposters of our Federal and Local Governments in Cyber World. Every day of the business week, five thousand plus recordings are recorded with the County Recorder of Clark County, Nevada. This is the average per day, 5,000 recordings. That’s 25,000 per week, 100,000 per month, 1,300,000 per year. How is that possible? Its only possible if 50% of the recordings are fraudulent, and they are. Clark County is the center of the e-recording world where fraudulent transactions are recorded to offset the transactions taking place in Cyber Space. MERS is a major factor in these recordings. Still, no one knows what MERS is. Or do they? The only people that know about MERS are the insiders using it for ill-gotten gain. It is nothing more than a database of mortgage loans that are kept track of nationally in one place and are still recorded in the County where the property exists.

*According to the “MERS Quality Assurance Procedures Manual, Version 2.0 November 17, 2003: (in italics)

Legal title to the mortgage lien or the lien of other security agreements must be vested in the Mortgage Electronic Registration Systems, Inc.; a Delaware stock corporation with its principal offices at 1595 Spring Hill Road, Suite 310, Vienna, VA 22182.

The loans are vested in MERS recorded in the MERS database but not on the recordings in the County where the property exists. MERS is supposed to be the beneficiary on the note and not the lender. In my case, MERS is not listed anywhere on the title or note but apparently are listed as beneficiary on the MERS database for my properties. This double recording creates the opportunity for fraud. By changing the beneficiary on the MERS recording, they are essentially creating another record for the same loan. This enables them to issue two loans, one for the borrower and one for the lender. The second loan is collaterized by the same property as the first loan. Since the beneficiary is listed as the lender on the recordings made in the local County where the property exists, the borrower sees the lender or trustee listed as the beneficiary and has no reason to question the recording. At the same time, the mortgage is recorded on MERS with MERS as the beneficiary essentially creating two recordings for the same property. The MERS recording is used to keep up with the cross-collaterization that has just happened. Another place to track the double recordings is at This is owned by Choice Point in Atlanta, GA. Know X is a national public records database open to the public. It is a fee based search engine and is used extensively by law firms and credit managers in the United States. The MERS recording comes up as a (trustee deed forclosure) on record with knowx if you have a loan that is recorded with MERS and with the county recorder. Essentially, it keeps track of the fraud. If you have a loan listed on with (trustee deed forclosure) beside it, the property has been double-mortgaged. The second loan, which the consumer doesn’t know about, is a mirror loan. It will be exactly the same amount, issued the same date, etc. etc. as the originating transaction. This is done so that if there is a cross up and the consumer somehow gets a statement or invoice for the second loan, it appears to be information concerning the first loan. If the second loan is the same amount, same interest rate, issued the same day, then the amortization schedule will be exactly the same. This makes the second loan basically undetectable.

*Excerpts from MERS Commercial quality Assurance Procedures Manual Version 2.0 November 17, 2003
Obligations and Reliances:

The relationship between Borrower and Lender is solely that of debtor and creditor. The relationship between Borrower and MERS is solely that of mortgagor and mortgagee. Neither the Lender nor MERS has any fiduciary or other special relationship with Borrower, and no term or condition of any of the Note, this Security Instrument and the Other Security Documents shall be construed so as to deem the relationship between Borrower and MERS to be other than that of debtor and creditor, and the relationship between Borrower and MERS to be other than that of mortgagor and mortgagee. The grants, assignments and transfers to MERS made in Article I are for the benefit of the Lender and its successors and assigns. Borrower understands and agrees that MERS holds only legal title to the interests granted, assigned and transferred by Borrower in the his Mortgage and Security Agreement, but if necessary to comply with law or custom, MERS (for the benefit of the Lender and its successors and assigns) has the right to exercise any or all of those interests, including without limitation, the right to foreclose and sell the Property, and take any action required of Lender, including without limitation, a release, discharge or reconveyance of this Mortgage and Security Agreement.
In the event of a sale, by foreclosure, power of sale, or otherwise, Lender, or MERS on behalf of Lender, may bid for and acquire the Property and, in lieu of paying c ash therefore, may make settlement for the purchase price by crediting against the Obligations the amount of the bid made therefore, after deducting therefore the expenses of the sale, the cost of any enforcement proceeding hereunder and any other sums which Lender, or MERS on behalf of Lender, is authorized to deduct under the terms thereof, to the extent necessary to satisfy such bid. Notwithstanding the provisions of this Section 11.1 to the contrary, if any Event of Default as described in the clause (i) or (ii) of Subsection 10.1 (g) shall occur, the entire unpaid Debt shall be automatically due and payable, without any further notice, demand or other action by Lender, or MERS on behalf of the Lender.

Section 11.2 Application of Proceeds:

The purchase money, proceeds and avails of any disposition of the Property, or any par thereof, or any other sums collected by Lender, or MERS on behalf of Lender, pursuant to the Note, this Security Instrument or the Other Security Documents, may be applied by Lender to the payment of the Debt in such priority and proportions as Lender in its discretion shall deem proper. Upon any foreclosure sale or sales of all or any portion of the Property under the empower of sale herein granted (if any), Lender, or MERS on behalf of Lender, may bid for and purchase the property and shall be entitled to apply all or any part of the Debt as a credit to the purchase price.
This must be illegal. If a borrower defaults on his mortgage, the property goes into foreclosure and a non-judicial foreclosure sale takes place. This sale is supposed to be open to the public. The sale price is determined by high bid and once the bid is accepted, all encumbrances on the property including liens, mortgages, etc. are all wiped clean and clear title is presented to the highest bidder. If the Lender or agent of the lender is allowed to bid on the property and add the outstanding debt owed by the borrower as a credit to the purchase price, the lender is going to be the highest bidder every time. Basically, none of the money bid for the property goes towards satisfying the borrowers debt with the lender since the outstanding debt owed is factored in the bid by the lender. This effectively eliminates most or all-potential bidders from outbidding the lender since the lender is using the debt owed as part of the bid price. This must be illegal. Any vehicle such as this that makes foreclosure a more lucrative situation for the lender than actually servicing the loan as originally intended promotes fraud by design.


· EDS was given the contract in April 1996, to create the software used for MERS. According to my research, (Exhibit ) All but 3 EDS companies located @ 5400 Legacy Drive, Plano Texas are foreign entities. I would be surprised if the Federal Government through Fannie Mae or Freddie Mac would award the software development contract to a non-US foreign entity. Where is official government endorsement of the MERS system? Nowhere to be found!

· MERS is an industry owned entity.

What Industry? The Real Estate industry? If there is no clear ownership defined and the industry as a whole owns the system, who is responsible for the monitoring the system for accuracy and possible fraudulent recordings? The only way a national registry database makes since is if the federal government is in control of MERS and to my knowledge, they are not.

Who Owns MERS?

The main reason stated as the benefit of MERS is that the recordings will be cheaper. If the property still records in the County where the property is located, and another recording is required in the MERS database as well, how could it save anybody any money? There are now two recordings required instead of one. How can two recordings cost less than only one?
I don’t believe that Fannie Mae or Freddie Mac or any other real government agency approved or endorsed MERS and agreed to include government subsidized loans in this registry. I believe the Fannie Mae referred to in the MERS documents is an imposter. “In the name of” Fannie Mae is whom these people are, not the Fannie Mae which is a division of Housing and Urban Development, an agency of the United States Government Where’s the proof?

Why is listing thousands of trustee deed forclosures on properties where no foreclosures have take place? These foreclosures are not recorded in the county records where the property is located. Show me proof of these foreclosures and identify the new owners of these properties.

Twenty Million loans recorded to date with MERS and no one knows who they are. Who is MERS and why can’t anybody answer that question? Does MERS own our properties?

MERS Quality Assurance Procedures Manual contains language and instructions for handling mortgages that is against State and Federal Consumer Protection laws.

MERS is part of the Enron debacle. It represents the awards taken through the bankruptcies as unsecured debt. It represents recorded documents that generate the instruments to steal with. Essentially, they are borrowing from the past, debt registered owing in the future, collect the Money today.

Many major financial houses including Wells Fargo are included on the MERS memberships list (See Attached)

MERS is the master database tracking recordings that are offset for stolen loan funds.

MERS is recorded on loan documents that have VPN in the bottom left corner.

VPN stands for Virtual Private Network

MERS members are all committing fraud if they record the lender as the beneficiary on the county recorders office and MERS as the beneficiary on the MERS recording


Henderson, Nevada

23 Responses

  1. Reblogged this on Deadly Clear and commented:
    For those of you just recently waking up – this is worth the repeat & ReTweet.

    The scenario reflects my personal experience with Wells Fargo Bank over the last several years. After banking with them for over 16 years, I realized that I was a victim of identity theft, which was controlled and perpetrated by the bank.”

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  3. I think it still needs to proved ; it would cost thousand of dollars to do a good investagation. I would not put it pass them to do something like this? In need of more information about this where and what to look for ?

  4. I thought I was beginning to understand how this worked, but this secondary shadow loan confuses me. Can someone explain further? Is there any evidence collected on this either through discovery or SEC filings, or…?

  5. James,

    I hate to burst your bubble but you are wrong on a number of fronts with respect to the relationship of the Borrower and Lender and MERS. Again, if you are interested in getting beyond what has already been talked about here don’t hessitate to email me, and I will personally discuss it with you.

  6. I am not bashfull, but if we are going to successfull, it needs to be carfully orchestracted on the right case, with the right attorney.

  7. So now we know why “They” are all manufacturing defaults.

  8. Well Nick G. don’t be bashful share it with the rest of us as well

  9. Mike L. I can help you with your case. It is something everyone has overlooked and will put the steak trough the heart of MERS.

  10. I would also like to know if anyone has used the site yet. I have suit pending in Federal Court against my lender. I filed the suit to stop a foreclosure. MERs transfered the deed to someone to start the foreclosure. I would like to go into and do some searching. I’m just not sure what to look for. It cost $20 for 24hrs of unlimited use. So if anyone can help me get started with that site and tell me what I;m looking for it would help out a lot.

  11. Has anyone used yet. I’d like to search for shadow mortgages and foreclosures but I’m not sure which category to check under. Would it be real estate or liens? I want to make the best use of a one day pass.

  12. Philip, I believe what happens is the borrower is given what is called a MINS number
    Look at this example :


  14. What does everyone think about starting a class action against MERS – join the discussion here

  15. Litton assigned the loan to HSBC then MERS apparently had the Trustee rescind trustee’s deed upon sale and have rescission recorded 07/16/08

  16. I think Dan is right Fremont never recorded an assignment to Litton or Law Offices of Les Zieve yet the Law Offices of Les Zieve as foreclosing beneficiary granted HSBC bank my house through Trustee’s Deed
    Upon Sale 06/20/08 wasn’t recorded until 06/27/08 then 06/30/08 assignment of deed of trust was made by Litton and recorded on 07/10/08

  17. MERS is a MLM for Banks, Title Co’s, ect. anyone can join, even you the Homeowner, for a fee $250.00? once you become a member you have access to Membership Benefits. To Become a Member log on you can fill the application online
    MERS Virtual Private Network Software (VPN) you can download the documents you would need for your FAKE Mortgage/Lending Company. You would have easy payment options to pay your membership, Pay by Check, Pay Online, Pay by Phone, and if your have Q&A there is also a CSR. NOTE: At this time they are unable to process credit card transations. However, this option will be availble soon. Seriously, please check the Forum. For those of you that are willing to represent US, MERS Law Department# 1-800-646-6377.
    Thank you James and Kevin.

  18. If anyone has the opportunity to look into this information further I would be very interested in reading the results of your efforts, via Neil’s blog or directly to my email.

    Thank you very much for the information, James. You have no idea how much this and the previous post by Kevin means to me.

    MERS is the largest foreclosing entity here in Michigan.

  19. Mario –
    James is in Henderson


  20. This question is not in regards to the above but in general based on everything I have read here:

    I am not a lawyer so I would like to know – are borrowers being denied equal protection under the law?

    Or maybe it needs to be asked another way – if you are in foreclosure or have been foreclosed upon, are you being denied equal protection?

    Or maybe I do not understand equal protection?

    Dan Edstrom

  21. That seems a little complicated but I think I am beginning to see the light. This may be another way to think about it (I am just picking at straws here based on what James and others I said):

    Your “note” is not physically assigned like it used to be. There are no physical assignments, allonges, attachments and the like. The actual “note” is probably destroyed – or more likely hidden offshore. Your entry is added to MERS on (or before) closing. MERS keeps track of all assignments (which are only accounting entries). It is a hidden, “black box” system to which the borrower is not privy. My guess is that your “note” is tracked through this system. When the time comes to “foreclose” on your house they spit out a copy of the “note” along with a fake assignment from “?” (I assume whoever was last recorded at the county) along with a fake substitution of trustee.

    So in essence we have the “real” path of assignments and a virtual path. I would call the “real” path of assignments the MERS system and the virtual path what really happens – the mortgage is recorded and then only assigned at foreclosure. The burden is on the borrower to prove the “real” path and/or disprove the virtual path.

    Dan Edstrom

  22. I would love to speak to James Henderson

  23. I think this read must be the most important read ever.For the past hours I have been thinking about this and I have concluded in part in this way.

    The loan is signed and at inception two loans are formed with different numbers,the mers loan is cast into defuld and foreclosed upon,sold and the proceedes are used in liquidation of the other loan,paying it off.

    This is how I understood it in part,if I am correct many questions arise.

    How is the process serving working?
    How can I find the forclosed loan by mers?

    Wow how very wonderful this scam is,therefore in essence our country is bankrupt completely.

    With the amount of research I am doing I ask myself if Iwill ever finish,SEC and now Mers alone takes forever.

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