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MERS Has Trouble, Right There in Ohio, With a Capital ‘T’…

Geauga County’s prosecuting attorney, David P. Joyce has filed a class action lawsuit on behalf of the county “and all other similarly situated counties in Ohio,” against MERS and everybody else who used the MERS “scheme,” alleging that they violated Ohio law requiring that, “each and every mortgage assignment must be recorded in the proper Ohio county recording office,” and that by doing so, they avoided paying the counties the attendant recording fees.

Former Ohio Attorney General Marc Dann says the case does accurately represent what he referred to as “black letter law” in the State of Ohio for the last 200 years.  He also described the case as being fairly narrow in that it’s really going after the recording fees that were not paid to each county when the defendants used the MERS system, but in doing so, the case is also going to have to establish the problems with the over all MERS operation.

Attorney Marc Dann

According to Dann, “Ohio law requires that transfers of beneficial interest be recorded in the appropriate county, so either they avoided paying the fees to the counties for what was otherwise a valid transfer, or perhaps the transfers were invalid, in which case many, many foreclosures should not have been allowed to happen.”

Geauga County is a small, rural county near Cleveland, Ohio, and Dann, who has his law office in Cleveland, has been fighting for the rights of Ohio homeowners since serving as the state’s Attorney General in 2007-08.  He says that if Geauga County’s prosecutor wins this case, he may be reopening thousands of foreclosures.

“This case asks court very directly whether the MERS system complies with state law.  If it doesn’t then I’m going to go back and reopen all of the foreclosures alleging that the transfers were invalid,” says Dann without hesitation.

The class action lawsuit, however, is about damages, and they could be substantial.  Dann says that the county recording fees are in the $30-$40 range, so in a state with over 80,000 foreclosures a year, and I have no idea how many mortgages that have been securitized over the last so many years, the amounts of fees avoided by easily reach into the millions.

The complaint alleges that the MERS system is a “scheme” designed to evade the required recording fees and the suit specifically seeks payment of those fees, saying that in the securitization process mortgages are assigned at least twice.

Also included in the complaint is the allegation that the defendants “systematically broke chains of land title throughout Ohio counties’ public land records by creating ‘gaps’ due to missing mortgage assignments they failed to record, or by recoding patently false and/or misleading mortgage assignments.  Further the complaint  states that the “defendants’ failure to record has eviscerated the accuracy of Ohio’s counties’ public land records, rendering them unreliable and unverifiable.”

I asked renowned consumer bankruptcy attorney Max Gardner what he thought would happen if the case were to be successful and he said it could put MERS out of business, or certainly make it a costly mistake for all involved.

O. Max Gardner III

“MERS INC. is a wholly owned subsidiary of MERSCORP and has no assets to speak of, and MERSCORP has some assets but it looks to me like a multi-million dollar judgment would be beyond their ability to pay,” Max said.

“So, I guess they’d need a bailout,” he quips.  “If it even looks like the prosecutor is going to be able to win this case, it’ll definitely be time for MERS to make a call to Houston, you know to say, we’ve got a problem… and it’s a big problem,” Gardner adds.

Max says that, although this case is somewhat similar to a case previously filed in Minnesota, he’s not aware of “any other case alleging this theory filed by a state or county to-date.”

The complaint states that the “defendant’s purposeful failure” to record the mortgage assignments in compliance with state law has caused “far-reaching, devastating consequences for Ohio counties and their public land records.”  And further, that those damages “may never be entirely remedied.”  (Emphasis added.)

The lawsuit, which was filed on October 13, 2011, names as defendants: MERSCORP, INC. and Mortgage Electronic Registration System, Inc., but also names:

Home Savings and Loan Inc., Bank of America Corp, CCO Mortgage Corp, Chase Home Mortgage Corp, Citimortgage Inc, Corelogic, Corinthian Mortgage Corp, Everhome Mortgage Corp, GMAC, Guaranty Bank, HSBC Bank, MGIC Investors Services, Nationwide Advantage Mortgage, PMI Mortgage Services Company, Suntrust Mortgage, United Guaranty Corp, Wells Fargo Bank, and Doe Corporations – names and addresses unknown.

So, obviously this is one to watch, both for the homeowners in Ohio, and elsewhere.  The ramifications, should the case be successful, could very well spread to other states, as the Ohio counties involved could receive hundreds of thousands or millions of much-needed dollars.

Once again, the arrogance of MERS and the industry that created it is astounding.  I mean, to simply disregard out of hand, 200 years of Ohio state law, without a second thought, is remarkable.  And when I read that it may never be entirely remedied, I can’t help but wonder what the ultimate cost of what was done will be and who will one day be forced to pay it.

From talking with Marc Dann and Max Gardner, it looks like this is a case that will cause great concern back at MERS headquarters, and all I can say is… it’s about time.

85 Responses

  1. Pat,

    Responding to your post to me below. Yes, you are correct numerous “errors” in recordings. More importantly, many recordings are not only in error as to ownership, but also as to payoffs.

    Here’s the problem, Pat, the “errors” are spilling over to those that PAID off loans — who may even have some “sort-of” recording of payoff. But, internally, that pay-off is never recorded.

    Recordings are becoming — worthless. And, this is going to be the big issue going forward.

    Origination is the first source of fraud — and we have barely touched the surface.

  2. Yes, Pat likes to “play” with us…then he sits back in his evil lair and chuckles with his cronies…

    But, we’ll have the last laugh…eventually.

  3. Pat said;

    “As to the $400k loan, the property is underwater. So, the lender is SOL when the first forecloses. He can try for a deficiency judgement, but since the homeowner has nothing left, what is the use?”

    That was the plight the guy who made the 400k 2nd signed up for when he made a second. He was in 2nd to start with and the refi of the first which was already ahead of him doesn’t change that. Unless one is an
    idiot, one knows that. You’re presumably not an idiot, which leaves
    faulty logic used to manipulate, I’m afraid. I certainly respect dfferences of opinion, but willful misstatement of facts really irks me. The holder of that second is no worse off than a zillion parties who made 2nds on homes which are now under water bur dd not “suffer” from some
    “mis-indexing”. In fact, I think you’re just trying to see how that insipid argument would play. Now you know.

  4. Pat—a homeowner is NOT to blame for signing a contract that was FRAUDULENT from the start…END OF STORY.

    Unless you really believe that if someone puts a contract in front of you that claims to one thing ( a real, bona fide FUNDED mortgage “loan”), and turns out to be something totally different—that means that the signer is in any way responsible for the consequences…

    And if you believe that, you are truly hopeless.

  5. somehow the idea that MERS was meant to be a national registry and completely screwed it up took a detour. MERS was never meant to be a national regisrty and a substitute for county recorders. it was meant to be used by the banks themselves to facilitate the securitization scheme. it screwed that up too, but the idea that MERS was an experiment in a national registry for the benefit of all is just not accurate. if anything, it was meant as a private substitute. it’s since come to light that the research and due diligence that went into its formation was flawed. the idea that they could avoid assignments in all the areas that require them to be recorded to be valid will soon be shown to be an incredibly costly mistake.

  6. I wrote this about a National Registry, MERS and Recording Offices to simply see what type of a reaction it would generate. It is exactly what I expected, and needed to know because of a White Paper being published.

    As to the $400k loan, the property is underwater. So, the lender is SOL when the first forecloses. He can try for a deficiency judgement, but since the homeowner has nothing left, what is the use?

    Frankly, for all the detractors, I no longer care about what is happening between most homeowners and lenders. Both are at fault, along with many other parties involved in each transaction.

    When I do get involved in a case, it is because there is clear evidence to support the allegations. Otherwise, I will not get involved. I am not going to go into court making unsubstantiated claims about a subject without knowing the subject in and out, knowing the pros and cons on each side, and geing able to make the arguments on each side. Only by understanding each side can I form a reasonable opinion that I can testify to in court.

    I am focused upon resolving the problems inherent in the entire industry. There are issues with regard to recording offices, statutes, lending issues, securitization, Fannie and Freddie and much more. Before housing can recover, these issues must be resolved. And to resolve the issues, they must be brought to light.

  7. i would be very surprised if the servicers go “off the list” for their attorneys. for one thing, it would be too much of a disruption to them to seek out new counsel in each state when they have relationships already in place. second, there aren’t that many firms set up to handle that type of work. Wells Fargo or US Bank can’t just walk into the 3 man shop on the county square and dump thousands of files on them. this is nothing more than a PR stunt for Fannie and Freddie and nothing will likely change

  8. @enraged

    you said to me:

    “I can tell you’re really enraged. Please make sure you don’t take it out on yourself. I’m concerned you’ll end up with a heart attack.”


    no worries my friend. As Worf from the Star Trek series says

    “It’s a lovely day to do BATTLE”.

    And I might add every day is a lovely day to do battle. The price of freedom is constant willingness to fight…………

  9. I’ve been saying this for awhile, this guy says it better:

    “This is why I favor direct, perfectly legal action by individuals and households to divest themselves of servitude/complicity in the Status Quo. Max Keiser’s campaign to cripple Power Elite speculators in silver is one example: if 100 million households each bought 10 ounces of physical silver, that would completely disrupt the speculative game played by Wall Street.

    One way to take direct action is to avoid student loan servitude: whatever it takes, get an education and degree without burdening yourself (and enriching Wall Street) with huge student loans. It can be done, but it means moving outside the Status Quo propaganda and narrative.

    There is no law (yet) requiring citizens to have a mortgage, or credit card debt or an auto loan. Imagine what would happen to Wall Street’s ponzi financialization schemes if there were no mortgages to slice and dice and sell. Removing your interest payments and debt from the system is a direct action against servitude and the dominance of the Wall Street/Washington Power Elite.

    Debt forces our complicity and servitude. The first step to true independence and freedom is to owe Wall Street and the other systemically dangerous institutions (SDIs) nothing. Owing them nothing is still perfectly legal. Once their income streams collapse, then buying the pimps and prostitutes of Washington becomes much more difficult.

    The storm troopers of the Elite in Washington will protect their interests at every turn; that is why “reforming the system” is essentially impossible.

    There are three ways not to have a mortgage:
    1. don’t get a mortgage
    2. pay off your existing mortgage
    3. If you are insolvent, declare bankruptcy and dismiss the mortgage debt via the legal process of bankruptcy.

    Others have taken the route of strategic default.

    Other direct actions include:

    –remove your money from Wall Street firms and “too big to fail” banks, opting for credit unions and online securities accounts.

    –closing credit card accounts and/or minimizing your use of credit cards, which generate vast fees and profits for Wall Street and TBTF banks–what William Black calls systemically dangerous institutions (SDIs).

    — don’t vote for either criminal gang–the Demopublicans or the Republicrats. Vote for an alternative, or the non-incumbent, or at least someone who refuses to play the game (for example, Ron Paul or Dennis Kucinich). Not voting plays right into the Power Elite’s hands: the passivity and complicity of the average citizen is their greatest ally in maintaining their neo-feudal power.

    There are other direct actions we can take in the privacy of our own lives and homes. The basic idea is simple: stop being complicit in an exploitative, oppressive Status Quo, and stop passively accepting the governance of prostitutes and pimps and the lackeys they appoint (Geithner, Bernanke, et al.) It is perfectly legal (so far) to be debt-free, to own silver and to vote against the two criminal gangs that run Whoretown (Washington, D.C.)

    Demonstrating is a good way to join in common cause and to raise awareness within the passive public, but being debt-free and thus a free citizen is even more powerful. Removing your debt and interest from Wall Street and the other systemically dangerous institutions (SDIs) will cripple their power in a way that toothless political reforms cannot.

    Becoming a free, independent citizen won’t solve all our nation’s problems, but it will certainly enable solutions that are now impossible in the current neo-feudal, neo-colonial plantation run by Wall Street and Washington. ”

    from below link

  10. On Occupy Wall St:

    “We are a DECENTRALIZED non-violent movement. If you are looking to contact one of our leaders, go to the nearest mirror and peer deeply into it. It may take some time, but, eventually, one of our leaders will appear with answers to all of your questions.”

    “This lack of identifiable leaders and shadow financial backers is driving the Power Elites and their Mainstream Media lackeys crazy. Since they are all pimps or prostitutes for one special interest or another, the storm troopers of the Elite cannot believe there isn’t some interest group behind the whole thing. A decentralized, self-organizing mass protest movement against their rule simply doesn’t compute.”

    “A nation ruled by a deeply, pervasively corrupt political/financial class is not a democracy or a haven of free market capitalism: it is a neo-feudal kleptocracy organized along a neo-colonial “plantation economy” model with debt-serfs kept in line by the toadies, lackeys and apparatchiks of government, media and finance–a class of enforcers, propagandists and regulators that constitute a Technocratic Caste, a caste with a taste for power and the big bucks that flow to those willing to sell their souls and bodies in service to extreme concentrations of wealth and power.”

    http://oftwominds (dot) com/blog.html

  11. I guess this about sums it up thats to easy credit:

    Debt-Serfdom Is Now the New American Norm


  12. Extremely cogent analysis on the Bevilacqua deal, as well as the entire fraudulent Wall Street scheme. A must read written by some savvy writers who understand the issues.

    “Radical though it may seem, we believe the only way to stop the chaos of fraud and the breakdown of the rule of law in our courts, and most importantly to ensure that we ourselves are not participants in the fraud, is for homeowners who can afford their mortgage to stop paying it…”

    “For example, what is easier; to scorn those who are being foreclosed on because they can no longer afford their mortgage or to accept the possibility that our entire financial, and maybe justice system might be badly corrupted? Across all spectrums of crime, victims are often blamed, just ask attorneys who represent rape victims. This phenomenon is by no means unique to mortgage fraud, or those who have been raped by the institutions who carry out this trade. It has been made to appear as if those who have fallen on hard times are a matter of “incidental” inequalities in an otherwise procedurally just system. However, it is precisely the opposite which is true. Our financial institutions have created deliberate inequalities, through the use of procedurally unjust systems.”


  13. This country is now being Held hostage by Wall Street and the Banks
    Occupy Wall Street. Never forget , Never forgive !

  14. Enraged regarding BofA the answer to your question is? Why do you think you are enraged?

    Because BofA thinks they can say and do what they want.
    That is one of the reasons why you are enraged.


  15. @enraged….

    Here is the answer to your question… DVA is a keyword for this earnings period for banks….


  16. I have to keep at this, I think. There is a concerted effort under way by all accounts to create a national registry, which we should not ignore and should vehemently oppose.
    Anyone who hears anything should tell the rest of us.
    It is just a matter of time before such a registry would seek to get
    adjudications that its records are the bomb, that whatever is at the land offices in counties doesn’t stand for anything. They will, i tell you, try to
    patch over the corrupt and incomplete chains of title which now exist
    in land records. That’s THEE goal. The secondary goal is to use the
    power of the registry to further control legislation regarding interests in real property. We slept thru some other anti-consumer legislation lobbied for by these creeps. We canNOT do it anymore. Maybe a few people here will put themselves in charge of scouring newspapers, etc. for
    efforts to get such a registry. We have to shut it down. Maybe such a registry is part of MERS’ secret 7 year contract with Genpact. That and spoilation as Dave Krieger suspects.

  17. @enraged – well, it doesn’t mean the servicers can’t still use the network attorneys, but it could be good news still. They probably will. It is the network attorneys who are particularly well-versed in the art of deception. The gov’t entities have probably been accused of misdeeds like discrimination for using a network, a few select firms to the exclusion of others, in the first place. And secondly, people could try to make them liable for the law firms’ myriad misdeeds. The gov probably isn’t liable, tho, I think anyway, because a principal is not liable for the actions of its agents which were taken outside the authority granted the agents. (and that’s one of the reasons any ‘agency’ related to real property must be
    expressed unambiguously in writing)
    But, like everything, there are exceptions to that theory (that a principal is not liable for the acts of its agent exceeding its authority). And those organized network guys were all privy to their own white papers full of
    rotten litigation strategies. I’ve got one around here somewhere that made me so mad, I couldn’t even assault it because I’d have to read it again. The entities engaging the network criminals knew or should have known of their misdeeds but did nothing.

  18. B of A in a really hot (federal) seat… thanks to Schneiderman and Biden. What I can’t understand is how in hell B of A can boast huge earnings when its stock fell 60%.


  19. This looks like a good news: servicers will have to hire their own lawfirms from now on. What the article doesn’t clarify is whether servicers will have to PAY the lawyers (who, from what I understand, were paid by Fannie and Freddie).

    If I understand incorrectly, please stratighten me out…


  20. Hey Pat, did Judge Shack’s rulings get reversed like you claimed on that other forum where Indio007 called you on your bullshit?

    Cubed, he’s not a Wall Streeter. He operates out of his basement office in socal. He’s extremely desirous of being somebody special, someone important in legal circles, but at most he’s insignificant, at the least he’s a nuisance.

    He does, however, try really hard to sell his crap to bankers, going so far as to pitch his services where he claims he’ll look over the loan file and advise the lender not only on details they might have missed as to foreclosure, but how to initiate litigation on the borrower. Now mind you, he’s not qualified to do this. He’s not credentialed. Am I wrong Patrick? Please, by all means prove me wrong. Are you published? Are you a professor? Do you have any of the talents or skill sets that are generally accepted in this business to call yourself an expert? Years on Wall Street? Or were you simply a small time broker or realtor? Or, what do you want to bet Patrick completed a weekend course where he got a frame ready certificate? CFLA? Bets!

    In his mind, he’s an important expert witness. In actuality, he’s simply terrorizing pro se borrowers who know jack-shit but are trying to hold onto their home, and Pat here’s working on behalf of bankers who pay him a pittance to act the part that I’m sure easily buffalos the average judge.

    But rest assured that this behavior will come back to bite him in the ass. One day, a borrower with new legal representation will come after him for his lack of expertise and for screwing them in court with fraudulent, incorrect testimony, and he’ll get to make license plates for the struggling borrowers on the outside for a good while. You cannot escape the repercussions of your actions. Karma is perfect in every way. You are causing mayhem for yourself. Not for others like you falsely believe.

  21. @Pat – Yes, more often than not, a court will rule that way on the equitable subrogation claim on the principle that the 400k guy expected to be in second position when he made the loan. But here’s the big thing you failed to mention, and that failure is troubling. I don’t have to look at the case to know this because I am familiar with those cases: The 400k guy is NOT out in the cold. He still has his loan in second
    position. He hasn’t lost it. And most likely he is in the same position because the court probably made him second only to the dollar amt of the first which was paid off by the refi and not any “new” funds advanced by the refi party. Pat knows just what I mean, so I won’t go into further detail unless someone wants to know. My
    point is twofold:
    1) the 400k guy is not out of luck as a result of the index mixup and
    2) Pat, you left that part out and made it appear he was out of luck.
    At any rate, S happens and nothing you said supports “MERS” or a national registry imo.

    If, and I repeat, IF a county recorder’s index
    system causes grief here and there, it can be fixed. In fact, some have taken steps to improve their systems, like requiring the parcel number on the top left of any document to be recorded. Recorders could certainly afford to hire the staff to revamp their systems as necessary if they were
    in receipt of all the funds to which they were entitled but never received.

    It is imo naive to believe that any type of national registry would not come with its own brand of deficiencies. No, our records need to stay where they have always belonged.
    If some foo’ wants to drop the dime for his own back-up national archive, have at it, but our reliance must be on our local land records. And if I may, believe me, there is another reason anyone would want a national registry and I promise you it is not for our benefit.

    But THIS is almost funny – Pat said:
    “Because the Citi loan did not have “proper notice” of the $400k loan, Citi is not responsible for the loan.” Sounds familiar, doesn’t it? Kind of like when homeowners have no “proper notice” of alleged assignments of interests in their homes? Some people must beware the double-edged sword.
    In fact, maybe that’s a good case for homeowners to cite about
    “proper notice” and responsibility. I mean, what’s good for the goose is good for the gander, right?

  22. Cubed,

    I can tell you’re really enraged. Please make sure you don’t take it out on yourself. I’m concerned you’ll end up with a heart attack.

    You make some good points. If, as Pat says, recorder’s offices make mistakes, they probably have been making them eversince they came into existence, 200 years ago. To my knowledge, a mistake here and there has NEVER caused millions of foreclosure, the complete destruction of the world economy, heart attacks, despair, suicides, etc.

    Pat mentioned the need for a centralized national recording system. Well, that’s what MERS purported to do for the banking industry/Wall Street. And it is a disaster. I keep mentioning that MERS doesn’t even know my house was sold to me by the previous owner a few years ago. MERS still shows an active loan, taken 4 years before I ever saw the damn house and never paid off. And no recording of satisfaction of mortgage exists on something preexisting me. What is the likelihood that anything at the national level will be any more reliable? Thousands of people were foreclosed on because of previous active loans never closed in MERS and never recorded locally. They call that “glitches”. That’s the reason more and more title companies won’t touch foreclosures: they know damn well the risk they take to have to indemnify a homeowner because something was not properly done before some poor schlemiel ever set his eyes on the property he bought. Title insurers can appreciate that “glitches” have become common occurrence. A national recording would be overseen by whom? This is pure insanity.

    Pat doesn’t get it: the solution is not in promoting larger and larger agencies that centralize all the info but, on the contrary, to go back to human scale. Local credit unions where local businesses can deposit their money and obtain loans. Keep recording local, where the real estate is. In the end, that’s exactly what will happen: we will go back to local businesses, local banks, local agencies. We’ll go back to manufacturing locally, farming locally. Why are so many people going back to growing their own food? Once things become too big, they become incredibly remote. No one is accountable anymore for anything. We don’t know anymore what they’re made of.

    Everything in this society has become remote. The only way out if to get back to basics. Get back to a society where people deal eye to eye, people discuss (try talking to any of the TBTF!), people negotiate and compromise. People treat each other with humanity and respect.

    That, I firmly believe.

  23. […] Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor, Mortgage, securities fraud Tagged: bankruptcy, borrower, countrywide, disclosure, foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, MERS, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee, WEISBAND Livinglies’s Weblog […]

  24. PAT is walking the down the street and see’s a kid fall off his bike, it’s a bloody affair, kid all tangled in the bike and concrete. Pat says I’ll help you out, sign this contract for my time lost helping you and I might be able to trade this contract on Wall St since you signed it. Hey, I’m helping, what’s the problem.

  25. Let’s see PAT,

    how come 20 years ago you could have 100k in your savings account and earn 5% interest, a cool 5000 bucks return on your money in deposit at a bank.

    how come you can’t get that now?

    how come???????????

    they, the gov’t (owed by wall st and as Bob Brinker says – we have the best government that money can buy) and banks and financial institutions want you to deposit your money into wall st to get a so called higher return on inflation……………how come?

    You answer me PAT.

    Obama says the answer is education———go out and get a student loan……….turn in your car clunker and get a newly financed car loan……….jobs bill, more borrowing,,,,,,,,,,same old war on borrowing,,,,,,,,,,,,it’s all borrowing money………..credit credit credit

  26. @PAT

    you said:

    “Have you ever checked out the problems with the recorder’s offices across the country? The use of the Grantee/Grantor Index is terribly inefficient and leads to errors in title all the time”


    So how come we have this problem now and not 20 years ago, how come we have a problem with mortgages? how come we have a problem with MERS? How come we have a housing problem? How come we didn’t have one before the year 1990? How come it meets the headlines now? How come AG’s are involved? How Come???????????

    WHY??????????? now all of the sudden???????//

    Pat, you are a shill for the Federal Reserve System of Corruption and the money in Politics and Wall Street…………

    no doubt about it……………

    you, my friend,,,,,,,,,,,,,,wish to see everybody in debt to the banks one way or the other……to Wall Street……you are a debt slaver

  27. @Pat – and HAMP would not EVER trump federal statutes.

  28. Pat – I don’t believe it. As presented to a borrower, a mod is (allegedly) a refinance of an existing loan secured by real property. I do not believe that the a.p.r., for instance, must not be disclosed to the borrower. In fact, it’s unconscionable. The bankster is taking credit info from the borrower, and that itself triggers certain rules, like giving the borrower a good faith estimate, for instance. Still, I’d look at your ‘stuff’ if you want to point me to it.

  29. @PAT

    you said—–

    “Recording offices were established in a time whereby horseback was the means of travel, and the written word could only be delivered by horseback, or slower. As a result, records needed to be kept at the local level.”


    GOOOOOOOOOOOD. Home mortgages should not be traded on WALL STREET. Your view is just more trading on trading and via’s and vias for making money on money BUT NO ACTUAL PRODUCT EXCHANGED. That is the difference, Wall St trades paper but NO ACTUAL PRODUCTS because they trade paper but not the real thing while the 99% have to trade the real thing…………….

    Pat, you are a shill for Wall Street and the bankers…………….I am convinced now………….

    tell me all the real good things you have done in life?

  30. @PAT

    you said:

    “We need Wall Street money for lending. Fannie and Freddie use Wall Street money themselves. Eliminate Wall Street money, and you cripple worse than it is now.)”

    BULLSHIT. You are a Wall Streeter. Wall Street should not be trading HOME MORTGAGES you fuk in trader……….you are a trader and a shill for wall street………….no doubt about it.

  31. Johngault,

    A loan modification is not subject to TILA. I have researched this in the extreme, and there is nothing in TILA to suggest such a requirement for a modification.

    Nor does HAMP guidelines, nor OCC/FDIC requirements on mods make mention of it either.


    There is another side of the story to MERS. Have you ever checked out the problems with the recorder’s offices across the country? The use of the Grantee/Grantor Index is terribly inefficient and leads to errors in title all the time. The errors lead to deeds missed in title searchs, missing assignments, you name it.

    I spoke with guy two weeks ago in New York. He provided a $400k private second mortgage to a homeowner, and had it recorded, properly he thought. But, the recorder office screwed it up.

    Citi went to refinance the property for the homeowner. They did the first, but missed the second. When the new loan was recorded, the second of $400k should have become the first.

    The homeowner went into foreclosure on the Citi loan. The $400k loan is being “ignored” by the court based upon Equitable Subgoration. Because the Citi loan did not have “proper notice” of the $400k loan, Citi is not responsible for the loan. Nor is the recorder liable for misindexing the deed.

    The title company is on the side of Citi, and has actually joined forces against the $400k loan. In the end, the homeowner will likely lose.

    I see errors on Chains of Title all the time. Some are from misindexing of a Deed. Others are from common names. Others are from lack of Reconveyances on previous loans being filed. Others are missing assignments. The errors are rampant, the older the home.

    Recording offices were established in a time whereby horseback was the means of travel, and the written word could only be delivered by horseback, or slower. As a result, records needed to be kept at the local level.

    Today, we have a completely world. It is time to create a “National Registry” for deeds, etc. With searchable databases, etc, the problems associated with local recorder offices would be significantly reduced, or eliminated.

    BTW, without MERS or a similar entity, there could be absolutely no securitization of loans other than Fannie and Freddie. The requirements of “assignments” per Trust, time frames considered, and the logistics involved would completely eliminate securitization for lending purposes. (We need Wall Street money for lending. Fannie and Freddie use Wall Street money themselves. Eliminate Wall Street money, and you cripple worse than it is now.)

  33. carie – did you ever link or post your letters to your bankster here? If so, would you tell me when please or repost? thanks

  34. leapfrog – yep.


    I suppose this is another pandora’s box, but those
    loan modifications, in reality servicer-subsidiations in disguise, surely are subject to respa and tila, and after reviewing a couple more lately, I see there is NO disclosure of the a.p.r., etc and imo there MUST be.
    Furthermore, these pieces of dog doobage done to get your autograph
    on an agreement to ‘modify’ what I’m starting to believe is charged off
    debt (and thus unsecured debt) is just that: the scam we have suspected it is.

    These deals are allegedly an agreement (bullshyt) to “modify”, that is, a REFINANCE of existing debt. They aren’t cause they’re crap, but when sold as such to the homeowner, they are subject to the applicable lending rules. First of all, these rat b servicers, et al are not licensed lenders. Check your states and you’ll see they aren’t. (And anyway, every lender must have a license to do a refinance even of its own loan.) No matter whom, if anyone these days, has the beneficial interest in your loan, to do jack with you, they must be licensed.
    Secondly, as i said, when done as ‘modification’ (best but errant light) read-refinance there is no reason tila, respa, and any other consumer protection laws and rules are suspended or otherwise not applicable. So here’s the good news IMO: all those mods which are bs, and in which you feel belatedly was the dog doobage it is, are likely to be subject to rescission for failure to follow rules requiring disclosure of a.p.r. etc. and probably a zillion other remedies.

    We want our HAMP funds back and of course

  35. tony is so right. “Standing” is a jurisdictional issue, and thus a threshold issue. No standing, no right to invoke jurisdiction of the court. Love a link to that case….?

  36. @zurrenah – I’d like to see that state statute. Can you post it or at least a link? thanks

  37. TMT

    Great post from Dr. Levitin.- thank you. Quote — “But this isn’t and shouldn’t be about robosigning. Robosigning was symptom of a much larger endeavor in reckless lending, in which corner cutting was the order of the day, from MERS to securitization paper work to no-doc loans. All of this was done to maximize profits and to enable a housing bubble that was hugely profitable to a limited number of financial institutions and with extraordinary collateral damage. Simply put, there needs to be accountability for blowing up the economy.”

    And, that is directed to Professor Zywicki who wrote the Forbes article.

    Dr. Levitin also discusses servicing — but, disagree a bit here — servicing is a huge problem — because no one knows who servicer is servicing for. Same with Greece— those nasty CDS.

    Dr. Levitin , what about those former GSE loans that came to be bank owned (you know — those subprime refinances)??? If we cannot get a complete and thorough investigation by the AGs — we have nothing.

    Let us get that investigation.

    But, up to the people to demand.

  38. Pat —

    Also — very important — There is federal law preemption to state —- in the TILA Amendment with Fed Reserve Opinion (now codified as Rule of the law) — that was also not pleaded in Gomes. According to new law — creditor must be divulged with contact information . And, by codified Rule the creditor is NOT security investors — and NOT the servicer — and NOT the trustee to security investors — and NOT any party with beneficial title.

    So did Gomes cite the law??? Would love to see this law — before the Supreme Court — but, first have to plead properly in lower courts.

    To Neil —–

    I have no idea why Neil has not promoted this law. Maybe because it states security investors are NOT the creditor, which Neil disputes with me —– but — people — we need to use it. This law (amendment) is now 2 1/2 years old — with little and improper application.

    Attorneys??? Your opinion??? Fed law does preempt state law. How does the (amendment) law preempt CA antiquated law???

    There is issue of retroactive — but only as to voluntary compliance — any request for identify of creditor — must be honored. And, if that “honor” does not match “assignments” — CA has a problem.

    I am not an attorney, and this is not meant to be construed as legal advise — but, only in the capacity of constructive educational opinion.

    But, if Neil does not get on the band wagon with this —

    Why —-Neil are you not on the band wagon??? Give me your reasoning. If you give me your reasoning perhaps I could possibly agree. But, you refuse to do that. Why do you negate or ignore the new law????


  39. Kudos! MERS IS BUSTED? Prosecute those involve in this schemes.

  40. tnharry

    Whether or not all states require recording is irrelevant — Ohio win could put MERS out of business.

    hman – new case win in NJ against Aurora — not on LEXIS yet — will post when it is. It is a good one.

    Pat — MERS is a national issue –public policy – Gomes v Countrywide is specific to non-judicial foreclosures — perpetrated by outdated laws such as in CA. Would not hold up in judicial states — this then becomes an issue of national dilemma — you cannot have some fraudulent foreclosures going through in some states with antiquated laws — and not going through in other states with judicial review. MERS will not survive going forward — because private securitization is not returning for a long time. — judicial courts will finish them in time — even if it takes cases like that in Ohio to bankrupt them. . Further, Gomes v Countrywide does not allege fraud — if they had— it would be a different outcome. Case states CA law — “that a trustee, mortgagee, or beneficiary, or any of their authorized agents – can initiate a (non-judicial) foreclosure.” Problem is none of those parties are properly named — none of the assignments are properly executed – and, in fact, fraudulently, and Gomes does not challenge this. And, as far as I know — in CA every assignment must be be legally and properly executed and without any element of fraud. Very strict. Case does not plead properly — all in the pleadings — However, do not worry — judicial states will eventually finish MERS off — if it has not already finished itself off.

    As you are aware, almost all new home loans and refinances are GSE loans — MERS not even a honorable mention. MERS — gone.

    Nevertheless — CA residents need to come forward——know of one resident who is outstanding – but need more — CA is the original source of foreclosure fraud. One third of all foreclosures in CA. CA — “The Land of Make Believe” – and original site of most subprime origination. If you are going to take to US Supreme Court — make sure plead properly.

  41. oops!!—This should have been the second clip I posted—the one with Bernie Sanders…not Mr.Cain!


    Good stuff!

  42. Great new Dylan Ratigan clips…MUST WATCH!!!



  43. Pat—what about the ledgers—what about subject matter jurisdiction—what about standing—what about real party in interest???
    Uh huh…thought so.
    You LOSE.

  44. Mary,

    This is the kind of statement that I would tend to qualify as “sweeping”.

    It is based on the premise that the eventuality was not considered and worked out ahead of time (which I find odd, considering the number of financial entities, including loan originators, that have disappeared/gone bankrupt in the past 5 or 6 years). And you know, I have never seen any contract between MERS/Merscorp and the loan originators but I bet it is spelled out and to the benefit of Mers/Merscorp.

    Just a hunch…

  45. Pat I beg to differ. Plus the Federal Government can be very very very persuasive if it wants. Regarding Ms Harris you did not read the article. She is being sued by homeowners.

    Just a reminder Pat works for the Banksters. Verified


  46. Comments on this statement would be appreciated.

    Any assignment executed by MERS in the name of defunct or bankrupt loan originators such as BNC Mortgage, New Century or Ameriquest should be scrutinized. The MERS relationship with loan originators is based in Agency Law: once the Principal company ceases to exist, the agency relationship with MERS does too.

  47. We shall see. MA has different statutes than CA.

  48. @ Pat,

    Thank you for clarifying. But you know what? Banks found every possible and imaginable loophole. Now that states are going on the attack, I bet they’ll be able to find their own…

    Let’s just wait and see. And in the meantime, I’m putting my money on MA as the next one.

  49. A man,

    You are in error on the Fed law overriding state law regarding foreclosures. The marijuana issue is totally different. You are comparing apples to oranges.

    Kamala Harris is a typical politician. She is using foreclosures to attempt to gain higher office in the future. Never trust a politician.

  50. A man,

    The case you posted concerns completely different issues: it’s about investors v. B of A. I dopn’t see that it has much to do with defrauding states of recording fees…

  51. In Ca, the original DOT must be recorded. Gomes, Cavallo, Cervantes and other courts have ruled that MERS on the DOT is lawful.

    2932.5 requires that with a mortgage, only “the beneficial interest by right of duly recorded assignment can foreclose”.

    The problem is that Ca is a DOT trust state. Since 1908, Ca courts have continuously ruled that a DOT is different than a Mortgage. 2932.5 is applicable only to mortgages, and not DOTs.

    Cavallo, in the Ca 4th Appeals Court, in Sep once again upheld that a DOT is different than a mortgage, and therefore 2932.5 does not apply.

  52. Here you go Tn


    Also once the City officials find out how much money they have been duped out of they will change the laws. Laws can be changed.

  53. Federal Court.
    Ask the AG of California about her law suit she will fill you in or google it.




  54. @Pat,

    I didn’t get your answer. The question was: does CA require recording of mortgages, assignments and transfers in the county where the property is located?

  55. @A-man, what do you mean by that statement that there is federal law that CA has to follow? what law are you referring to?

  56. But there is federal law that the state of CA has to follow. Just ask the Medical Marijuana dispensaries and the AG of California who is being sued by homeowners in federal court.


  57. CA does not require an Assignment for a Deed of Trust. Only a Mortgage.

    BTW, Gomes v Countrywide was denied by the US Supreme Court, as I predicted.

  58. I bet the next state to file will be MA. O’Brien in Salem (Essex county, I believe) was really, really pissed at the loss of revenue and made no bones about it. After that, CA (major loss of revenue there and they need money. A lot of it.)

    But… tn is right: not every state has a recording requirement. Bryan, if your state does, send that article to your DA and ask him/her to follow suit.

    Remember? DAs are elected. Put pressure on yours.

  59. @enraged – been on vacation trying to stimulate the economy of florida

  60. @ tnharry,

    Where have you been? For a minute there, I feared Carie and E.Toile had scared you off…

  61. Hey Neil, I posted that last night in the “Letter to Zywicki” and your “moderator” blocked it ’till this morning! What the hell? Is this in retaliation for my having said that you were a sold out? Real classy!

    Anyway, when I found that, I was tinckled pink and I immediately posted it here for everyone to enjoy. I knew it was just a question of time before something like that happened. Now, we absolutely need Judge Burt to allow it ‘cuz up until now, class actions have not fared very well in this country.

    And even though not everyone appears to be named, B of A is in, Chase is in, Wells is in and there is plenty of room left to add a few names.

  62. @hman:

    Have you asked your “debt servicer” (Aurora?), for PROOF with a LEDGER and a BALANCE SHEET of your payments being conveyed to an actual “MORTGAGE”—not just some fraudulently obtained alleged “debt” that is being serviceed by an entity that PRETENDS to be associated with an actual “lender”—WHO ULTIMATELY HAS NO STANDING TO EVER FORECLOSE AND IS NOT A REAL PARTY IN INTEREST?!?!?!?

    You must DEMAND these things, people—DON’T BE AFRAID TO—we have nothing to fear but fear itself when it comes to these scummy debt collectors…the FDCPA is on our side—USE IT!!!!!

  63. “The standard language in the MERS’ deed of trust may not withstand scrutiny.

    The attorneys (presumably) who crafted the MERS’ dot were apparently missing some essential experience. With a background in real estate, agency, and the statute of frauds, they might have recognized that the term “mortgagee” is inappropriate in a deed of trust. The term “mortgagee” is used to describe a party in a two-party instrument who owns a note and a lien on real property securing it, but has no application in a deed of trust.

    The deed of trust was originally formulated and legislated to do away with the time and costs of
    judicial foreclosure required in the enforcement of mortgages, including the borrower’s lengthy right of redemption.
    Regardless of any recitations in a dot, there are only three parties, and none of them is appropriately called a mortgagee. The three parties are the trustor, the trustee, and the beneficiary and these are the only legitimate names for these parties.
    It is today’s deed of trust’s, specifically MERS’ deeds of trust, reference to “mortgagee” and “lender” which causes if not encourages confusion. While there has been no head-on adjudication on the confusion in the MERS’ deed of trust, courts have found similar confusion to render a contract unenforceble. ”


    P.S. Anyone know if this author is also “our” John Gault? I assume it is and I’ve always thought so, but maybe I’m wrong.

  64. This is great news. Hopefully, Ohio will win and many others will follow suit. Unfortunately, AZ recent court decesion didn’t see it that way. http://www.financialserviceslitigationmonitor.com/2011/10/articles/consumer-protection-litigation/az-court-dismisses-72-lawsuits-against-mers-confirms-its-role-as-beneficiary/

    It seems as though the MERS recordation system was validated in AZ. I wrote a Debt Validation to my servicer stating several of the statutes pertaining to recordation of real estate in AZ. I got a response back from a firm representing Aurora. The firm stated that I had agreeded and had knowledge of registering my Deed of trust on the MERS system when I signed my DOT being MERS was a nominee for my lender.

    How do you rebute that? Especially given the outcome of AZ recent MERS decission in favor of MERS?

  65. Wrong zur, not all states require assignments be recorded. I know Tennessee doesn’t, and I know we’re not the only one. There are a few more.

    @carie – what about ledgers? i have discussed subject matter jurisdiction before. it’s certainly one of the first lines of defense. it’s not exactly what it’s been represented as on the site previously though.

  66. There you are, tn—how come you never answered my question about the “ledgers”???

    Thanks…also—your thoughts on subject matter jurisdiction issues—with regards to real party in interest and standing?

    to refresh—I’m referring to this post from “tony”:

    tony, on October 17, 2011 at 6:57 pm said:

    It is “unsecured” debt protected by smoke and mirrors. What makes it funny is that it isn’t even unsecured debt. Unsecured debt is when you at least owe someone money. These servicers are not even owed any money they are just hoping they can get something from you.
    I was at a hearing the another day and the judge asked the “banks” lawyer does the servicer have standing? They said no, then she asked can they join the “real party in interest”? Lawyer said no, the judge shook his head and hoped that the pro se didn’t hear that.
    Of course the pro se did and he said can we end this case now, I think I won on the issue of standing and real party in interest plus lack of subject matter jurisdiction. Judge said yeah I think you did. Denied the banks (without prejudice of course). Then the judge asked for the so called note that they had. Lawyer said no you can not get my note, how will I foreclose he said you know it and I know it that’s not going to happen. Banks lawyer said but we have the note we should be able to move. Judge said you can’t even get past jurisdiction first, much less talk about notes.
    It was a funny case, after the case the judge closed out the rest of the docket he was so mad. So in short always bring up jurisdiction first before you even get to your other areas of defense.

  67. How do i start this in Rhode Island?

  68. I’m pretty sure that all states require recording of assignments but they have some loopholes. In my state, one of the big loopholes is that if an agent of the beneficiary is named, they don’t have to record assignments. My argument is, of course, that MERS–who is listed as the beneficiary of my DOT–is NOT the beneficiary, and therefore assignments must be recorded.

    I may not have that loophole exactly right, but I did bring it up in my complaint and in other papers. However, there are other, more significant issues that have come up that I and the Defendants are focusing a lot more on and so I have forgotten the exact details of that loophole. But my point remains–all states require recording of assignments, but there are some loopholes that MERS tries to take advantage of.


    BOOM!- Feltus v. US Bank, 2nd DCA Reverses Summary Judgment! Great Job Mack Law Firm!
    October 19th, 2011 | Author: Matthew D. Weidner, Esq.
    We view U.S. Bank’s filing of a copy of the note that it later asserted was
    the original note as a supplemental exhibit to its complaint to reestablish a lost note as
    an attempt to amend its complaint in violation of Florida Rule of Civil Procedure
    1.190(a). U.S. Bank did not seek leave of court or the consent of Feltus to amend its
    complaint. A pleading filed in violation of rule 1.190(a) is a nullity, and the controversy
    should be determined based on the properly filed pleadings. Warner-Lambert Co. v.
    Patrick, 428 So. 2d 718 (Fla. 4th DCA 1983).

    Before a court may grant summary judgment, the pleadings, depositions,
    answers to interrogatories, admissions, and any affidavits must ” ‘conclusively show that
    there is no genuine issue as to any material fact and that the moving party is entitled to
    a judgment as a matter of law.’ ” Allenby & Assocs., Inc. v. Crown St. Vincent Ltd., 8
    So. 3d 1211, 1213 (Fla. 4th DCA 2009) (quoting Fini v. Glascoe, 936 So. 2d 52, 54 (Fla.
    4th DCA 2006)). The party moving for summary judgment bears the burden to show
    conclusively that there is a complete absence of any genuine issue of material fact. Id.
    The properly filed pleadings before the court when it heard the Bank’s
    motion for summary judgment were a complaint seeking to reestablish a lost note,
    Feltus’s answer and affirmative defenses alleging that the note attached to the
    complaint contradicts the allegation of the complaint that U.S. Bank is the owner of the
    note, a motion for summary judgment alleging a lost note of which U.S. Bank is the
    owner, an affidavit of indebtedness alleging that U.S. Bank was the owner and holder of
    the note described in the complaint, and U.S. Bank’s reply to Feltus’s affirmative
    defenses asserting that it was now in possession of the original note, which it attached
    to the reply. But the note attached to the complaint showed the lender to be
    Countrywide Bank, N.A. And the complaint failed to allege that “[t]he person seeking to
    enforce the instrument was entitled to enforce the instrument when loss of possession
    occurred, or has directly or indirectly acquired ownership of the instrument from a
    person who was entitled to enforce the instrument when loss of possession occurred.”

    § 673.3091(a). In addition, the affidavit of indebtedness revealed no basis for the
    affiant’s assertion that U.S. Bank owns and holds the note. The affiant is an assistant
    secretary for the alleged servicing agent of the Bank, and she asserted that she had
    personal knowledge of the loan based on the loan payment records. She did not assert
    any personal knowledge of how U.S. Bank would have come to own or hold the note.
    See Shafran v. Parrish, 787 So. 2d 177, 179 (Fla. 2d DCA 2001) (“When affidavits are
    filed to establish the factual basis of the motion [for summary judgment], they must be
    made on personal knowledge, demonstrate the affiant’s competency to testify, and be
    otherwise admissible in evidence.”).


  70. This is MOST excellent news and I needed it on a couple of bad news days like the derivatives exposures that the taxpayers will be expected to be saddled with – 75 trillion, folks. When have we had enough? I’m going to borrow A-Man’s quote (thank you A-Man ; )

    Never Again.

  71. Not all states have a similar requirement that assignments must be recorded and those that lack it likely could not maintain such an action. But many do, and they haven’t stepped forward yet. What ever happened to the case filed by the DA in or near Dallas that Neil reported on?

  72. http://mattweidnerlaw.com/blog/2011/10/boom-3rd-dca-rips-apart-improper-bank-practice/

    I dissent because I cannot condone the unprofessional and unethical means used by the bank’s counsel, with the trial court’s complicity, to obtain an amended final judgment in this case. Counsel for Centennial Bank admitted at oral argument that the amended final judgment, which more than doubled the amount of the deficiency judgment, was obtained after an ex parte communication with the judge’s chambers. Either the judge or her staff then advised counsel on how to
    proceed. Not only was it improper for the trial court to give legal advice, but the advice was wrong—directing counsel to send a letter with a proposed amended final judgment, rather than to file a motion seeking appropriate relief. This was then followed by another ex parte communication—a letter from the bank’s counsel to the judge, that then resulted in a new final judgment two and half times larger than the previous final judgment. The bank did not even send a copy of the
    letter to the appellant. Incredibly, the majority of this panel is willing to condone and reward such behavior.


  73. Bye bye MERS! And good riddance. But thank you for putting all your fraudulent info online, easily accessible to everyone!

  74. Geesh I second that – where in the heck is the other spineless states – like PA right next door with even older land history being destroyed – get a clue states . . it’s either MERS or Me (persons)!

  75. They will..we do things slowly in America—have you noticed?

  76. As if MERS really has a “headquarters.” They are a shell. So glad he named the real owners of MERS.

  77. Occupy Wall Street has inspired millions, and the movement is just taking shape.

    Over the last 10 days, we’ve seen countless heroes stand up and challenge big banks, Wall Street and the 1%.

    NPA affiliates took over a Wells Fargo bank branch in Minneapolis,http://showdowninamerica.org/minnesota-stands-big-banks
    NPA affiliates took over a Wells Fargo bank branch in Minneapolis, coordinated a “Millionaires March” in New York http://showdowninamerica.org/news/millionaires-march-targets-milstein-other-real-estate-moguls/101111 which made stops at the homes of some of the city’s wealthiest, occupied the People’s Park in Des Moines, http://www.iowacci.org/news/newsarticles/OccupyDSM2.html joined forces with Occupy Kalamazoo , http://www.youtube.com/watch?v=9kBBQG8TvDs&feature=youtu.be held actions all week long to make Wall Street banks pay in Los Angeles,http://showdowninamerica.org/la-week-action-concludes-rally-city-hall and helped mobilize 5,000 people to occupy and Take Back Chicago. http://showdowninamerica.org/robin-hoods-storm-mortgage-banksters-conference. Miami Occupy movement http://www.miamiherald.com/2011/10/17/2458806/local-activists-sign-on-to-support.html

    Meanwhile, Americans are holding strong in Zuccotti Park after police tried to power wash them out on Saturday.

  78. Why the heck isn’t every other state doing the same thing?

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