KABOOM – WOW – JPMorgan Chase Dumps MERS, Mortgage Electronic Registration Systems
Posted by Foreclosure Fraud on October 13, 2010 · 1 Comment
JPMorgan exits electronic mortgage tracking system
NEW YORK – JPMorgan Chase’s CEO says the bank has stopped using the electronic mortgage tracking system used by major financial institutions.
Lawyers have argued in court proceedings that the system is unable to accurately prove ownership of mortgages.
JPMorgan Chase & Co. and other banks have suspended some foreclosures following allegations of paperwork problems in thousands of cases.
JPMorgan’s CEO, Jamie Dimon, made the announcement in a conference call Wednesday to discuss the bank’s quarterly earnings.
Rest here…
Not sure of the ramifications on this but it is going to be bigger than anything we have ever seen…
Filed under: foreclosure |
I heard the bank theves was useing witch craft – while on the other side , the gods was training the banker to give away a few houses , the devil came to steel kill and destory , and the god came for u to have the light – isent this making sense now 2011 ? They said it took the police a few years to see this case , why cause the case has the power from wicked in a hi level place – what do that mean , that mean onto the good god is ready he a let the little devil who he threw from heaven on earth , place his game – onto he say – look at me son – the one , who want take up the devil evil going no matter what . If u born with that good light , its in u , let it shine , because it a shine anyway . Mr bush the old pres didn’t need the white house , he needed a gun him self to go fight a oil war he had with them middle eastern , the us troop , didn’t , or the usa , didn’t have nothing to do with that , he had the white house power and used it to get back at his – p a l .of the oil mines of weath .
They have u now u chase manhatten bank theft , ceo james dimon , u turn my grand mom banks chase into a fraud ground , and now u have turn her passing away property into a tire dump , she died at 1460-1462 memorial dr atl ga 30317 , j burton j henderson .and my brother girl friend passed away to at this address . And they a get u soon , from the federal warrant ,and now the city of atl ga a take a nother warrent out on u for tire dump scam , and the fraud owner scam . Yall going to prison for 450 years theves , taken people stuff they work hard for /oing around showing off to the ladys yall own this and that yall theves going to own a nice jail cell , I’m the real president owner .I don’t no yall and don’t want to no yall .
I think the conference cleared up some of my questions about this insurance thing, So without any security interest this is merely to cash in on a “loan” that has already made paid to the original lender. I do not understand the benefit of pushing along an empty morgage that is not secured by anything as I do have the Title given to be by the original lender. Problem is they have continued to call and harrasse to the point of then stating that the ‘LOAN” is not modifiable as they knew all along, they are just trying to force a pretend obligation at you.
RECENT ACADEMIC PAPER:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1469749&download=yes
——————————————–
Foreclosure, Subprime Mortgage Lending, and the
Mortgage Electronic Registration System
Christopher Lewis Peterson
University of Utah – S.J. Quinney College of Law
University of Cincinnati Law Review, Vol. 78, No. 4, 2010
Abstract:
At the roots of the worst recession since the Great Depression were unaffordable home mortgages packaged into securities, sold to investors, and used as capital assets by financial institutions. The process of securitization, as well as financial institution over-leveraging associated with it, has been well documented and explored. However, there is one company that was a party to more questionable loans and foreclosures than any other and yet has received virtually no attention in the academic literature. Mortgage Electronic Registration Systems, Inc., commonly referred to as “MERS,” is the recorded owner of over half of the nation’s residential mortgages.
MERS operates a computer database designed to track servicing and ownership rights of mortgage loans anywhere in the United States. But, it also acts as a proxy for the real parties in interest in county land title records. Most importantly, MERS is also filing foreclosure lawsuits on behalf of financiers against hundreds of thousands of American families.
This Article explores the legal and public policy foundations of this odd, but extremely powerful, company that is so attached to America’s financial destiny. It begins with a brief explanation of the origins of the county real property recording systems and the law governing real property liens. Then, it explains how MERS works, why mortgage bankers created the company, and what MERS has done to transform the underlying assumptions of state real property recording law. Next, it explores controversial doctrinal issues confronting MERS and the companies that have relied on it, including (1) whether MERS actually has standing to bring foreclosure actions; (2) whether MERS should be considered a debt collector under the federal Fair Debt Collection Practices Act; and
(3) whether loans recorded in MERS’ name should have priority in various collateral competitions under state law and the federal bankruptcy code.
The article culminates in a discussion of MERS’ culpability in fostering the mortgage foreclosure crisis and what the long term effects of privatized land title records will have on our public information infrastructure. The Article concludes by considers whether the mortgage banking industry, in creating and embracing MERS, has subverted the democratic governance of the nation’s real property recording system.
By the way, the secutity interest spot was left blank on the policy
Question for someone, Today I recived a “lender based insurance policy” in the mail stating that the new Predenter lender is from Chase Home Finance LLC which does not own the “Loan” or the property. So, In regards to this insurance in a frauduent “lenders”name with all the chips pointing to thier courner. How do you get your own policy “restored” and the pretender lender’s name of as Succsessors and assigns?
THE GSE BUSINESS MODEL mandates that JPM have MERS—-not optional. FNMA buys 99% of all mortgages from JPM today. If they did not have MERS there would be a breach of warranties and representations.
Do you think that JPM will walk away from FNMA otherwise known as the “BIG TIT”?
UPDATE: Mortgage Electronic Registration System (MERS) has released a statement in regards to JPMorgan Chase’s earlier announcement that it was no longer using MERS: “JPMorgan Chase is a valued member of MERS. They currently have their correspondent loans registered on the MERS System. They do not, nor have they ever, registered their retail loans on the MERS System. As members of MERS and for loans registered on the MERS System, banks have the option of foreclosing in their own name, or MERS foreclosing for them. JPMC has chosen to foreclose in their own name, which is a common decision that is allowed under the structure of MERS.”
http://nationalmortgageprofessional.com/news21103/jpmorgan-chase-stop-using-mers
angry & NOT TAKING IT
That is not going to happen. Trust me, this is coming from high officials in executive departments of US government. Us AGs did not think of this themselves. It is not a ploy to win in settlements without recognition of what has been done to the people. Whether or not they try to accept all claims to “fix” all problems is my concern. However, as stated, you cannot retroactively go back and “fix” documents – when conditions have changed. Courts across the US should have recognized this themselves. This is a slap in the face.
Lucy
Love your articles – you are good at uncovering them!!
zurenarrh,
Go get em!!
Fifty state attorney generals..
this is bad for borrowers!!!..
Fifty state attorney generals will settle out of court,fpr some bulshit amount that is meaningless to borrowers, and the Fifty state attorney generals actions will bar borrowers for bringing their own actions against the vermin.
BofA after they acquired country wide inked deals with they Fifty state attorney generals to prevent the borrowers individual SURE TO FOLLOW lawsuits.
OUR GOV CAN NOT BE TRUSTED.. BOTH STATE & FED GOV IS COMPLICIT .
The alphabet soup of agencies is owned & run by these very criminals, look at the inaction & the actions that have gone on is meaningless to the middle-class situation. WE are not one of the group that is protected by the alphabet gang.
Bart: That’s the point–it leaves all those approximately 65 million deeds out there “broken”. By doing this it forces some across the board Congressional action under the “commerce clause” to fix these titles–what does that do? Unfortunately, these lenders will claim it is a “fix” of the problem–its not–but they will claim it is. This is a backdoor attempt to get Congress involved to “fix the problem”. Its coming
Ok, so this may be another ploy, but if MERS is out the window, what happens to all those frudulent assignments from MERS to Jp morgan chase ?
to those saying this is a state’s rights issue–here’s the resolution of this–claim it is an interstate commerce issue and therefore can be done under the interestate commerce clause–that is what I would argue as a congress person. I know I got removed to fed court and the defendants argued interstate commerce and are winnning on that argument–i think they are wrong but fed judge is buying it. What do I know after 30 years in the courts!
About three years back, I walked into 120 law offices in the Washington DC Metro area, (DC, MD and VA), from Baltimore to Richmond. And only a hand full said they would take a look and jump in with me and a group of disgruntle, crazy former, real estate brokers, mortgage brokers and title agents that sat down and started to look in detail as to what was happening. And through our own personal experiences we faced the SERVICING monster and the Foreclosure mill predatory practices.
After being well versed and very strong on the compliance side (75 years of combined compliance experience), we started to notice a pattern. Missing notes, missing signatures, out of state notaries, the foreclosure attorneys would never pick up the phone, they would ask the judge for heaven and they would bring down the universe in a silver platter, foreclosure paperwork would look like a scrabble game board and a dancing chair contest combined. Entities would appear in o ne paper and be substituted incongruously with others, when that did not do they decided to create entities out of the blue, unregistered corporations, and then the TRUSTS, oh! the TRUSTS, the entities that are supposed not to own anything and do anything but to be a cash conduit and holder in trust of money and/or documentation. These trusts started to appear and then the theater began on the court house steps hidden in some unseen corner, the foreclosure mill attorneys showing the outrageous gall shown for lately, started coming out with strange credit bids and bidders, some properties were sold for pennies on the dollar, some went to Fannie and Freddie at the court hose and the the tax records would show something different, some investor not related to the TRUSTS of FANNIE or FREDDIE.
And the theater in the court house, Your honor the borrower is causing undue harm to the rights of the lender, your honor, the lender as the holder in due course ask the court for summary judgment and or dismissal of this case with prejudice. And the Judge like in a well rehearsed general Hospital scene would agree and declare that he could not justify the moral hazard of the borrower getting a wind fall, and there fore you Mr. Home owner, you’d better move out and the hell with your family and your claims. because here in Old Virginia Country the Land of Jefferson, we do not believe you deserve due process and your claims be heard on their merits. Since the “lenders” are always right.
And then the Sheriff, of the town and county sheriff having to evict my family with my mother in a wheel chair and an IV line with pain medication due to her lymphatic cancer and my three kids on the curb. Who cares may have said my neighbor when he saw that unnatural scene for a high class neighborhood of million dollar homes, in which I have live for ten years prior to the eviction, and only two years prior I had refinance to use my home as an ATM machine to pay for medical bills, since my mom with a preexisting condition could not get health insurance. But as in the holocaust, I carried my sign on the forehead as a dead beat.
Oh that day, that day. and How things change when some one makes a stand and fight for his rights. Now after three years of fighting and teaching, training, looking over 5,000 files of borrowers from NY, to FL. Most of the lawyers I talked to and threw me out of their office because I had gone mad, and by saying the lenders would never do such a thing, all these loan are fully compliant, the “software” says it is. You Jose, are out of your mind. The Virginia State bar came knocking at my door threatening to put me in jail if I continued talking and sharing the knowledge, The Maryland Licensing and Regulatory board came to my office and threaten me and my staff with felony charges if we did not provide them with the names and addresses of the lawyers who were using our Mortgage forensic analysis services. they then went after the lawyers, these MD people accused the lawyers of attempting to modify loans through litigation, WEIRD!!!!, the lawyers were sanctioned, prevented from filing more cases in some venues, the clients became upset, the lawyers frustrated, and then total despair. But one day, I go back one more time into LIVINGLIES and I see a post, I could not believe my eyes The servicers and pretender lenders employees admit to signing thousands of documents without knowing their content and veracity.
The whole dynamic changed. Now those lawyers who kicked me out have been calling me like crazy. I told them you need to come into my office and I will charge you $1,000 an hour for a consultation of how not to be a stupid lawyer!
now they want expert witness services, analysis, review, class action assistance, consultation, now they want to play catch up. Oh and the judges, now they are into the “Oh! My GOD, what have done” , and they are granting TRO’s in circumstances where that was never seen.
Still some dumb heads out there, but eventually they will realize that the emperor is naked and jump ship and all rats do, when they see the ship sinking. And all the loan modification outfits calling as well asking to see if they by selling their services like they were the last coca cola in the desert, did not harm their clients by having them sign contracts with a party that had no business in the deal.
And all the bankruptcy attorneys that flooded the radio and tv with I will get your foreclosure stopped, but never told the client that it was only for a few days. These vampires are also calling, they just cannot understand how they could be so dense as to not understand that the whole bankruptcy was a total failure and that their client still owes the money to some undisclosed entity and that their licenses if the clients were smart enough to file for malpractice would be in jeopardy.
Like the soap opera, As the World Turns!
I said it before and I’ll say it again, OBAMA IS A GENIUS !!
I WOULD LOVE TO PLAY A GAME OF CHESS WITH HIM.
Mr. Garfield, what do you think?
http://subprimeshakeout.blogspot.com/2010/10/new-york-judge-tosses-greenwich-suit.html
Anonymous, I’m wondering that too–if there’s an investigation, shouldn’t we wait for the results of it before we decide anything in all these lawsuits? Or not–I don’t really care because I’m gonna kick their ass in court anyway. But still, it does create some questions…
The N.Y. State Banking Department has suspended home foreclosure actions by mortgage loan servicers, requiring that they conduct internal reviews of their foreclosure practices.
http://market-ticker.org/akcs-www?singlepost=2210849
i gotta hand it to Karl Denninger …. what a call on his part.
please notice the directive of “lipservice” given in FINALLY the appropriate
context!!.. THANKS KARL!
http://market-ticker.org/akcs-www?singlepost=2210579
by Karl Denninger
in Foreclosuregate
Now We’re Cooking: The Right Wakes Up
The consistent argument from the right since Foreclosuregate began is that “this is just procedural” along with the usual whine “those evil lefties are just trying to get a free house.”
(Notice how they spin it?)
Well, the dam just broke.
“At the core of this problem was a widespread, massive interconnected fraud” says Janet Tavakoli of Tavakoli Structured Finance. “The fraud didn’t begin at foreclosure, the fraud began when these loans were first made.”
Well well well. Fox News finally quotes someone who knows what they’re talking about, and instead of running the BS line about “it’s just paperwork” prints the truth: the fraud goes back to when the loans were first made.
And who made the loans? THE BANKS.
Who securitized the loans? THE BANKS.
“Just paperwork” eh? Uh, no, the paperwork problem is a cover-up.
Thus, my name “Foreclosuregate”, which is the proper name for it, since this entire edifice certainly appears to be nothing more than an attempt to cover up the fraud in origination and securitization – fraud that, were it be uncovered and the responsible parties held to account, would sink all the major banks.
Welcome to the real world Fox News.
Many years late (more than three behind me and a few others, even more behind Janet) but better late than never.
To the right-wing base: Wake the **** up – you’re being asset-stripped to the bone, and the political party that gets in front of this and hammers the responsible parties owns both Houses of Congress for the next 20 years.
No, you can’t keep fellating the banks and still come out ok.
This is going to blow up and if you’re on your knees in front of Jamie Dimon and Blankfein servicing them when it happens you will go up in smoke with them.
Capiche?
AG’s been vey busy lately.
http://4closurefraud.org/2010/10/13/bam-florida-economic-crime-division-of-the-attorney-general-subpoenas-to-lps-lender-processing-services-docx/#comment-7624
What happens to ongoing cases while the investigation is pending?? What if judge rules for foreclosure – and investigation shows fraud – what do they do then??
Yeah – but this is what they first wrote about Alabama
“Alabama initially did not sign on to the investigation. It reversed course after the joint statement was released.”
See full article from DailyFinance: http://srph.it/bDQu3h
This shows the incredible bias of the WSJ:
“Officials in the state of Alabama joined the nationwide investigation into the nation’s mortgage servicing industry, a move that could pressure financial institutions to rewrite large numbers of troubled loans.”
Oh gheez, they’re already privy to the outcome of this investigation! Move along people, there’s nothing to look at here……
Betcha they were pressured by stock holders 🙂
Fifty state attorney generals signed onto investigation. Alabama – originally wanted no part of it. The sponsor of the Interstate Recognition of Notarization Act – was Congressman Robert Aderholt from ALABAMA. He is up for re-election this November – If you live in Alabama – vote him out.
I agree with Gwen. I smell something fishy.
Do not let up…
Gwen, as I see it, title is an issue of state and county laws (recording). How can a (new) federal law trump state and local laws on recording? That is what they tried to do with MERS and hoped it would become the defacto “federal” recording mechanism. By distancing themselves from MERS, seems to tell me that they understand that that will not happen.
I’m not an attorney, so what do I know, but seems all the “states rights” folks would (should) be up in arms over such a federal power grab.
~~Old Jamie boy is cagey as a fox~~
Yes, but foxes can be caged…..
Hey banker, what’s in your wallet?
And what’s that smell?
I agree , we need to watch this move as Old Jamie boy is cagey as a fox. Keep the pressure everyone call /email your AG, Congress member & Senator & White House.
We have 3 weeks to put pressure on all of them !
WHAT??!!! HUH????!!!! WHAT??!!! Did Chase just publicly announce that “there are issues with the system properly being able to prove the ownership of mortgages” Did they just give everyone their home for free? WTF??? What kind of back room shananigans are going on? Why would they make this public admission? It may be a lot more than just Mr. Geitner with the check book again. I’m pretty scared to find out. I’m quite sure we “can’t handle the truth”
OMG!!
DON’T BE SO EXCITED FOLKS! There is a reason they did the moratorium and there is a reason for this and if you think it is the banks dumping on MERS you are smoking those funny cigarettes. What do the banks have to gain by this and that should be the question–besides pointing the finger at someone else–they have now said all these titles are screwed up. The only way to clean this up without clogging the courts with a gazillion qt actions is to get congressional action–WHAT WILL THAT DO? Listen up, it will make the latest pretend lender the last in the line and now having clear title so they can foreclose without title problems–that is what they ar after–clear title, ability to foreclose and the ability to say we own the note–They did not do this for the hell of it folks.
It’s about damned time . . .
Sweet! Front row seats to the implosion. They will get everything they deserve.