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Just released. Thanks to Dan Edstrom our senior securitization analyst for alerting me.

SEE MERS_Cease_and_Desist_2011_04_13



The Agencies find, and MERS and MERSCORP neither admit nor deny, the following:
(1)    MERS is a wholly-owned subsidiary of MERSCORP. MERSCORP’s shareholders include federally regulated financial institutions that own and/or service residential mortgages, including Examined Members, and other primary and secondary mortgage industry participants.
(2)    MERSCORP operates a national electronic registry that tracks beneficial ownership interests and servicing rights associated with residential mortgage loans and any changes in those interests or rights. There are approximately 5,000 participating Members, of which 3,000 are residential mortgage servicers. Members register loans and report transfers, foreclosures, and other changes to the status of residential mortgage loans on the MERS System. There are currently approximately 31 million active residential mortgage loans registered on the MERS System. Examined Members receive a substantial portion of the services provided by MERSCORP and MERS.
(3)    MERS serves as mortgagee of record and nominee for the participating Members in local land records. MERS takes action as mortgagee through documents executed by “certifying officers” of MERS. MERS has designated these individuals, who are officers or employees of Members or certain third-parties who have contractual relationships with Members, as officers of MERS. By virtue of these designations, the certifying officers execute legal documents in the name of MERS, such as mortgage assignments and lien releases.
MERS Consent Order
(4)    In connection with services provided to Examined Members related to tracking, and registering residential mortgage loans and initiating foreclosures (“residential mortgage and foreclosure-related services”), MERS and MERSCORP:
(a)    have failed to exercise appropriate oversight, management supervision and corporate governance, and have failed to devote adequate financial, staffing, training, and legal resources to ensure proper administration and delivery of services to Examined Members; and
(b)    have failed to establish and maintain adequate internal controls, policies, and procedures, compliance risk management, and internal audit and reporting requirements with respect to the administration and delivery of services to Examined Members.
(5)    By reason of the conduct set forth above, MERS and MERSCORP engaged in unsafe or unsound practices that expose them and Examined Members to unacceptable operational, compliance, legal, and reputational risks.
Pursuant to the authority vested in them by the Federal Deposit Insurance Act, as amended, 12 U.S.C. §§ 1818(b), the Bank Service Company Act, 12 U.S.C. § 1867(c)-(d), and the Federal Housing Enterprises Financial Safety and Soundness Act, 12 U.S.C. § 4631, the Agencies hereby ORDER that:
(1)    Within twenty (20) days of this Order, the Boards of Directors of MERSCORP and MERS (the “Boards”) shall each establish and thereafter maintain a Compliance Committee of at least three (3) directors, of which at least two (2) may not be employees or officers of MERS or MERSCORP or any of their subsidiaries or affiliates. In the event of a change of the
MERS Consent Order
membership, the name of any new committee member shall be submitted to the OCC Deputy Comptroller for Large Bank Supervision (“Deputy Comptroller”). The Compliance Committee shall be responsible for monitoring and coordinating MERS’ and MERSCORP’s compliance with the terms and provisions of this Order. The Compliance Committee shall meet at least monthly and maintain minutes of its meetings.
(2)    Within ninety (90) days of this Order, and within thirty (30) days of the end of each calendar quarter thereafter, the Compliance Committee shall submit a written progress report to the Boards setting forth in detail its actions taken to comply with each Article of this Consent Order, and the results and status of those actions.
(3)    The Boards shall forward a copy of the Compliance Committee’s report, with any additional comments by the Boards, to the Deputy Comptroller and the OCC Examiner-in- Charge within ten (10) days of receiving such report.
(1)    Within ninety (90) days of this Order, MERS and MERSCORP shall jointly develop and submit to the Deputy Comptroller an acceptable plan containing a complete description of the actions that are necessary and appropriate to achieve compliance with the terms and provisions of this Order (“Action Plan”), as well as the resources to be devoted to the planned actions, with respect to services provided to Examined Members. In the event the Deputy Comptroller requests MERS or MERSCORP to revise the Action Plan, they shall immediately make the requested revisions and resubmit the Action Plan to the Deputy Comptroller. Following acceptance of the Action Plan by the Deputy Comptroller, MERS and
MERS Consent Order
MERSCORP shall not take any action that would constitute a significant deviation from, or material change to the requirements of the Action Plan, or this Order, unless and until MERS or MERSCORP have received a prior written determination of no supervisory objection from the Deputy Comptroller.
(2)    The Boards shall ensure that MERS and MERSCORP achieve and thereafter maintain compliance with this Order, including, without limitation, successful implementation of the Action Plan. The Boards shall further ensure that, upon implementation of the Action Plan, MERS and MERSCORP achieve and maintain effective residential mortgage and foreclosure- related services on behalf of Examined Members, as well as associated risk management, compliance, quality control, audit, training, staffing, and related functions. In order to comply with these requirements, the Boards shall:
(a)    require the timely reporting by MERS and MERSCORP management of such actions taken to comply with this Order and/or directed by either Board to be taken pursuant to this Order;
(b)    follow-up on any compliance issues with such actions in a timely and appropriate manner; and
(c)    require corrective action be taken in a timely manner for any non- compliance with such actions.
(3)    The Action Plan shall address, at a minimum: (a)    the capability of the Boards and senior management to ensure that MERS
and MERSCORP are operated in a safe and sound manner in accordance with applicable laws, regulations and requirements of this Order;
MERS Consent Order
(b)    development and implementation of a strategic plan to include a comprehensive review of business operations, including the risks associated with each business line, and recommendations to implement the strategic plan;
(c)    consistent with the strategic plan, development and implementation of a financial plan to ensure that MERSCORP and MERS have adequate financial strength to support business operations related to Examined Members. The financial plan, at a minimum, shall address:
and liquidity risk; and
any need for additional capital, including the amount and source of
the identification, measurement, monitoring and control of funding
(iii) discretionary expenses and improve and sustain earnings, as well as maintain adequate reserves for contingency risks and liabilities;
(d)    development and implementation of a comprehensive litigation strategy to effectively manage lawsuits and legal challenges involving MERS and MERSCORP, regardless of whether MERSCORP or MERS is a named party, including early identification and tracking of such lawsuits and challenges;
(e)    development and implementation of a communication plan to communicate effectively and in a timely manner with MERSCORP’s shareholders, Members including Examined Members, and relevant external parties;
(f)    development and implementation of a compliance and quality assurance program for ensuring that Examined Members implement and follow all of the Rules, including
MERS Consent Order
a profit and budget plan to include specific goals to reduce
adherence to the requirements set forth in MERS Announcement 2011-01, dated February 16, 2011;
(g)    development and implementation of a plan to ensure that MERS certifying officers are transitioned expeditiously onto the Corporate Resolution Management System (“CRMS”) in accordance with MERS’ current certifying officer policy and process;
(h)    development and implementation of appropriate standards to maintain separation of corporate functions between MERS and MERSCORP;
(i)    review of the effectiveness of the Rules, and related Procedures, Terms and Conditions to determine what, if any, additions, amendments, or deletions are appropriate;
(j)    development and implementation of enhanced information reporting practices to senior management from lower levels of each organization, and from senior management to the Boards to ensure that significant issues are properly identified and escalated, and that corporate actions are considered, taken in a timely fashion, and properly documented;
(k)    any Matter Requiring Attention in the OCC Supervisory Letter No. MERS 2011-01, dated January 19, 2011, that addresses an issue that is not otherwise covered by provisions of this Order; and
(l)    development of contingency plans to address issues that arise with respect to any of the foregoing elements of the Action Plan, including plans that address operational continuity issues in the normal course of business and in a stressed environment.
(4)    The Action Plan shall specify timelines for completion of each of the requirements of this Order. The timelines in the Action Plan shall be consistent with any deadlines set forth in this Order.

33 Responses

  1. Great blog here! Also your site loads up very fast!

    What web host are you using? Can I get your affiliate link to your host?
    I wish my site loaded up as quickly as yours lol

  2. any one reading this who can help please do.

    i had an alias summons issued on my home because i was forced to stop paying in order to get a loan mod.

    the process server walked into my home ( in my garage ) while i was inside my home. when i looked in my garage i yelled to the person that she is on private property and needs to get out now! the process server had no chance to say a word to me… pounded on my door yelling and i could not hear because of my tv and dog barking and left the alias summons at the front door. this process server was tresspassing and i dont believe there was proper service. court dockets still have not been updated to state that the papers were served either.

    im in Florida
    my loan was with INDY MAC BANK now ONE WEST
    MERS is the NOMINEE for the the lender
    im with in 3 years of recission for TILA Violations.

    i dont know if i should respond yet since i dont believe i was properly served.

    but i do want to slam them with


    i also need a forensic loan audit, but finding it very difficult to reach some one that i can talk to over the phone.

    if you can help me send an email to



  3. Dear DyingTruth, on April 14, 2011 at 12:37 pm said:
    This cease and desist order reinstates and extends the satatute of limitations for many laws including TILA because it counts as a regulatory action

    Thank you. Copied post so appears at top. Could there be intent by Congress to show some good faith here?

  4. More forecloser, more dirty tricks by servicers, things just harder?I agree with ca pro se the nightmere continues!

  5. Tresspass,

    I was, really sorry to say, and i ment what I said. As a person of strong conviction i have read, and learned the codes. State and Fed. Yes you are correct in pointing out the obvious, as we all have done. Speciffically as to the TITLE 18, “securities fraud” I have submitted on more than one occasion, pleadings that if taken as true would put the Judge and the Pretenders in the place where they belong…The bottom line in my blurb being, To WIN A CASE, MEANS OUR GOVERNMENT IS THE RING LEADER OF THE CARTEL, and this being the fact never to see the light of day. SO as we see the Theft will go on until the balance of private property is in the hands of the CARTEL. It seems hard to believe one could simply sue A criminal enterprise, in a court ran by the very same criminals. They would probably just change the rules of the game, as we see is just the case before us.

  6. Well said trespass unwanted. Couldn’t agree more.

  7. trespass unwanted,
    That’s right. You got it down the right way with the right perspective. Recovering the economy will require a restoration to the ‘Status Quo Ante’ of all us that would be buying things and keeping the flow of commerce healthy if not for being robbed for all of our assets, forced out into the street and left with no option but to spend all our money on unreasonable rent to predatory landlords.

  8. Ca pro se,
    With all due respect, you need to stop thinking someone anyone, agency with no real body behind it that will put their name on an agreement, can make decisions for you.

    90 days may clear a title if things are done according to law. Fraud is never cleared nor can it convey a clear title when the transaction is through theft.

    I sometimes believe they throw enough information at us to get us confused so that our ‘short memories’ will make us forget there is ‘fraud’, with no statute of limitations.

    Do you care what settlement was made with whom? Unless you hired them, they had no right!

    You need to get out there and research their codes.
    Go read Title 18, and learn what they can and cannot do. Go learn that they have less room to move about but as long as you think they are ‘all powerful and omnipotent’, you will give them the power they don’t have, but you gave it to them.

    Fraud is Fraud.
    Compensation? Well maybe the compensation is that they give me my home back (buy out the current people they gypped into buying stolen property), and give me money for the dispossession, the cost of living while I was away from my home and had to pay another entity for a place to stay whereas if I stayed in my home I’d owe nobody because I sure didn’t owe them, and other penalties for the stress, duress, and coercion of them robbing me of my estate and my right to ‘experience’ life at that location around those neighbors.

    That’s why they can’t set a minimum and a maximum, it’s what you agree to.

    The way I see it, and this is my opinion, whoever purchased a home stolen by these people need to be evicted and I get my property back. They can go to court and settle their dispute with the title company or the lender or the realtor or whoever, but they know if they bought a home at a steal of a deal, and all this news about people wrongfully foreclosed, it was on the back of my misfortune (and I use that term lightly) that they wanted to get their fortune.

    My home was sold by MERS through Quicken Loans. MERS is still active in taking property. Pretty soon, it will own all the land in America and since it’s an entity shared by the major banks, they will own all the property in America. They control the flow of money, they control the flow of loans, they control the stock market, betting against it, and creating money to buy low and sell high. When they finish, all of America will always be a tenant never a land owner. That’s not how it works in my world.

    MERS is fiction, and so are the fictions that created it. All being equal and One, they will have to give me back the property they stole. It’s not for sale, there is no bargain to let someone else keep it, it’s mine, I get it back AND you pay penalties for the damage you caused when your actions caused a ‘man with a gun’ to put a notice on my door that he would return in a few days to remove me and my property.

    I never abandoned my property…never.

    I see what they could and couldn’t do.
    They filed things and they recorded things without authority to do so. Their name is on the things they’ve done.

    Go read Title 18, and see they aren’t immune. You just don’t know how to bring up what they’ve done to get them in trouble.

    AG’s if they don’t do right, I’ll be filing the right things and the 100th monkey in all 50 states will make sure they cannot allow fiction to hurt the people of the land again.

    This is a dog and pony show.

    They either get on board, or fall just like everyone else who’s falling because the ‘people’, not persons, not individuals, the ‘living people’, will read your rules that you must govern yourself accordingly by, and have you removed by the signatures you place upon the documents you agree to for the fact that you’ve violated your oath of office.

    The people are awakening. We did not like having our homes stolen and we don’t agree to settle for money that is depreciating every time they print more.

    That is not an equitable settlement. That is not justice. We will not settle for less.

    Even if all of us got a million dollars, within ten years, they could monetize our checking and savings, and have so much money in circulation, it will seem like $10,000 by the time it’s said and done.

    No way. I do not consent to just a cease and desist.
    The people are to be made whole. You reboot, and back out all the agreements of the last three years…you reshuffle the new home owners, regardless of whether they knew or not.

    This is not fair for any set of people to deal with what happened, and if it turns out the ones you foreclosed can’t get the homes back because they got it from someone who was foreclosed on, well I’m sorry, but back this mess up.

    I want to experience my life where I was before a fiction took a ‘real’ out of the private and pulled them into the ‘public’ on a fraudulent controversy that misrepresented, mislead, misconstrued, and misrepresented the law.

    They had no right to alter my ‘life’ like that, so they will fix what they broke.

    I do not consent to be bound by the obligations of any contracts I did not enter into knowingly, willingly, or intentionally. I will not be compelled to perform the obligations of any contracts created in fraud, or by coercion, threat, or duress.

    Your bonds do not protect you from what you’ve done. They are only as good as the work you do without fraud. Your system will remove you as soon as you are identified within it.

    “I know Kung Fu.” (Neo, The Matrix 1999)

    By The Creator within: Trespass Unwanted, Executrix, alive, allodial, corporeal, life, live born, born alive, in jure divino, in jure proprio, free, freeman, whole blood, adult, sovereign

  9. This cease and desist order reinstates and extends the satatute of limitations for many laws including TILA because it counts as a regulatory action

  10. this is a way to try to make legal what is illegal.

    Just more crap from your corrupt federal government

  11. .



    Neil and other WordPress Customers- Please pass on


  13. Phoey! MERS needs to be completely abolished. It’s entire business plan is illegal. You cannot “hide” the existence of the notes inside MERS. MERS hides the proper chain of title inside an entity the rest of us have no way of examining. It is still an entity that violates real property law. If I was a mega pretender/lender, I would not use MERS anymore–too dangerous. Whatta whimpy government we have.

  14. also, can anyone tell me how the settlement(s) the government is entering into with these companies is going to effect private lawsuits, or if they will effect them? i have a private action in state court in the beginning phases against MERS and GMAC, what happens now?

  15. Adam Levitin had this deal pegged two weeks ago. All smoke and mirrors.

    The C&D order basically tells banks to set up lots of internal procedures and controls within the next few months and then to tell their regulators what they have done. The reporting on these internal controls to the regulators will be non-public (like all safety-and-soundness review issues), so it will be impossible to judge whether the controls are adequate and whether the regulators are being sufficiently demanding. The result, I suspect, is that in a few months the bank regulators will declare that everything is fine.

    ~ snip ~

    Don’t buy it–this is Potemkin regulation, plain and simple. The C&D orders are a barely a slap on the wrist for the largest consumer financial fraud case in history. The CFPB estimates that servicers made at least $25B by failing to comply with the law. And that’s with very conservative assumptions. The idea that requiring the internal controls that should already exist in any well-run financial institution is a sufficient penalty for fraud of this magnitude is chutzpah to a degree that one could not expect except from an agency like the OCC.

    Our regulators aren’t. Our legislators don’t. Our justice system isn’t. Our Attorneys Generals are more like privates. The Masters of the Universe rule with an iron fist. We all knew full well that nothing of substance would come from these investigations when Jamie Dimon said that money penalties were off the table. John Walsh gets his marching orders from Dimon, make no mistake about it. They’re BFFs.

    The only thing that can change this system is revolt. Anything less is simply letting the lunatics run the assylum. TPTB have proven time and time again that they are unwilling to change their oligarchy….it’s just way too profitable and took too long to perfect. It’s pitchfork time in America.

  16. why is the government so affraid to call a spade a spade? mers is a scam, scheme.. nothing more. the players should be on trial or in jail. what the hell is going on? mers was created so the bankers could do exactly what they did.. cheat, lie and swindle. and why would the government let a private company take over a state/county function, and take the revenues those functions generate, with no questions asked?

  17. Again, are we jumping the gun here? Post haste to get the word out? The correct word?


    This is a stipulated agreement for the government to help MERS/MERSCORP “attempt” to legitimize itself.

    This will not happen according to their action plan.

    The reason this will not happen is because quiet title actions will muddy up their plans.

    Anyone with MERS on their mortgage or deed of trust has reason to suspect their title is clouded.

    There is only one way you fix a cloud on title.


    I am in the process of setting up a consulting firm which should be completed by the end of April. We will be doing national training in QT actions for both attorneys and paralegals. The many phone calls I got after my Florida trip bear this out as to the need for it.

    My review of this CONSENT ORDER is soon to be posted on

    This Order does NOTHING for the homeowner with a cloud on title. This is a “circle the wagons” type of doublespeak. MERS and MERSCORP are neither fined nor sanctioned for any of their behaviors. As I said in the book … the government is in bed with the banks and this is one more demonstration of that involvement …


  18. Yawn. It’s all simply a bedtime story told to us all by Uncle Sam, in his various incarnations. He wants to put us, and all those pesky allegations of mortgage-related impropriety (dare I say law-breaking), to sleep.

    Unfortunately, the bedtime story (“cease and desist order”) doesn’t match the tough “sheriff is back in town” talk from these agencies in stories planted in the media.

  19. This does indeed seem to be a de facto recognition of the supposed legitimacy of MERS rather than a takedown. However, MERS will likely not comply, which may result in punitive legal action against them–but probably not…


  21. What we new would be the endgame…Read it over its a step by step Hands Down Sel of Approval For MERS and the Completion of The Graetest Theft Of Private Property in World History…Within 90 Days its all legit, all of it. Robosigners, Certifying Officers of Freddie, Fannie and all they have done is now legit. YOU Have 90 days to clear yor title, after that, its not your property anymore, even if you think its yours…ENDGAME..Please Debunk My Nightmare come true.

  22. Anybody see this posting today?

  23. I know I only skimmed thru the long order, but did anybody notice there was more of a hand slap but no substance?
    It’s like they said “we know you’ve been bad and got caught but you gotta clean it up and try to look legit. Shame on you, now go play.
    Or am confused with all the legalese you have to wade thru?

  24. i would like MERS and MERSCorp and its subsidiaries to be out of the pictures of my deed of trust.


  25. After reading it, it looks to me as if the consent order for MERS just let it off the hook. It allows MERS to become legitimate and permanent through cleaning up its act. I think the banks will fund the cleanup. What does this mean for MERS cases now pending? What does it mean for mortgages naming MERS that were made before MERS cleans up its act? Is the company going to be given the opportunity to manufacture assignments for those? I had been planning to file a MERS case if my quiet title action doesn’t work out. What does this mean for the show me the note” offense? What does this do for forensic audits of securitizations — will they mean anythiing now? What does this mean for recording assignments in local courts? Will MERS continue to get away without paying filing fees? Etc.

  26. […] ALL MAJOR FINANCIAL FEDERAL AGENCIES ENTER CEASE AND DESIST ORDER AGAINST MERS « Livinglies’s… This entry was posted in World News. Bookmark the permalink. […]

  27. Looks like window dressing with the goal to leave MERS in place; otherwise, why no mention of past and present foreclosures that were facilitated under these cease-and-desist-worthy business practices?

    According to this, MERS endangered the BANKS, no mention of screwing the investors, the debtors/homeowners, and 50-state county revenue. No mention, either, of the voluntary aspect of members inputting these loans into the system. What happened to the loans the banks, or some $10 hr. clerk, decided not to put in the system? How can anyone know which loans were registered when that decision was left up to the bank? What about violation of professional code of ethics or flagrant conflict of interest when an attorney from the foreclosure firm acts as a MERS certifying officer to assign the mortgage to the plaintiff so it can sue MERS as co-defendant? In other words, the foreclosure firm represents the plaintiff and the defendant in the same case. And what about resolving whether the certifying officers were appointed according to the corporate rules? Was Hultman authorized to appoint any of these people to represent MERS, or was only the board allowed to appoint officers?

    This news is disheartening to hard-working attorneys and hard-fighting homeowners. Anyone can be sure that the banks will put up the money to do whatever MERS needs to do to comply with this order.

    WHERE are the handcuffs?

  28. It appears that the Feds closed the barn door and upon experation of the 90 days will have has time to implemented stratigies that will again open the flood gates of foreclosures.

  29. This be a way for MERS to say we are doing our own house cleaning under the direction of the Feds, who are blessing our ongoing business plan and business model, so as a State judge, just but out.

  30. The cease and desist goes after 8 banks and LPS and so on, but, and it’s a big butt, it’s bad summer stock theater. Yves Smith predicted this just a few days ago. Bad karioke at a strip mall.

  31. I agree with tnharry, I do not see any explicit cease and desist order. However, my take on it was that as a practical matter, MERS will have to fold up and go away. There are too many aspects of this order that seem very difficult to comply with. Take for example the part of the order stating that the compliance committee must “ensure that MERSCORP and MERS have adequate financial strength to support business operations related to Examined Members. The financial plan, at a minimum, shall address:capital;and liquidity risk; andany need for additional capital, including the amount and source ofthe identification, measurement, monitoring and control of funding…” That seems difficult.

  32. This sounds like a scolding from a parent:
    ” Straighten up now. You need to tell me what’s going on at school. And defend yourself against that no good bullie!” What a joke. The OCC will pat their friends on the back. Stuff happened, oh well.

  33. So I read the article and then clicked through to read the actual consent orders. I’m now wondering if the meaning of cease and desist order has changed recently…

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