MICHIGAN SUPREME COURT: NO TO MERS, YES TO SERVICERS

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EDITOR’S COMMENT: The decision is somewhat scrambled but the basis for it is well-defined in the law. An agent CAN bring an action on behalf of a principal as long as they disclose what they are doing. If you had a bookkeeper, theoretically she could go into small claims court claiming payment on your behalf — but she can’t claim payment to her on the promise or implied promise that she will turn over the money to you. I don’t think this decision does much for the chances of either the banks and servicers on one hand, or the homeowners on the other hand.

When the lie about who they are and what they are doing they are committing fraud on the court which is what those indictments in Nevada are all about.

Michigan Supreme Court upholds controversial foreclosure system

By Eric W. Dolan
Wednesday, November 16, 2011

foreclosuresign-commons

The Michigan Supreme Court on Wednesday reversed an appeals court ruling that held the Mortgage Electronic Registration System (MERS) had illegally foreclosed on thousands of homes last spring, according to Bloomberg.

The Michigan Court of Appeals had ruled that MERS, a national system to assist in the sale of mortgage debt, didn’t have the legal right to foreclose by advertisement when it didn’t lend the money.

The decision had been used in multiple lawsuits seeking to prevent or void foreclosures.

Democrats blasted the ruling, noting that the Michigan Association of Realtors’ spent $450,000 to help elect Republican justices in 2010.

“This is just another pro-special interest, pro-big bank decision by the Michigan Supreme Court,” Michigan Democratic Party Chair Mark Brewer said. “These Republican Justices repeatedly side with the special interests who fill their campaign coffers during election season. Siding with big banks over the victims of illegal foreclosure is inexcusable and the voters will hold this Court accountable in 2012.”

“We need a Court that is fair and unbiased,” added Brewer. “If you’re an insurance company, oil company, big bank, or polluter, this is the Court for you.”

Eric W. Dolan

Eric W. Dolan

Eric W. Dolan has served as an editor for Raw Story since August 2010, and is based out of San Diego, California. He grew up in the suburbs of Chicago and received a Bachelor of Science from Bradley University. Eric is also the publisher and editor of PsyPost. You can follow him on Twitter @ewdolan.

 

12 Responses

  1. Will this Michigan ruling be overturned?

  2. MERS is a Fraud and the Servicers are lender pretenders no original notes and original mortgage no proof of any kind of a owner to the debt that gives them the right to foreclose no proof of title chain no assignment of mortgage attached with foreclosure complaint or recorded in the clerks of court of public official records MERS is named mortgagee and nominee on mortgage documents holding no interest or standings to foreclose because they did not lend,MERS is not a valid creditor with any right to collect a debt,or enforce a debt, and it does not own mortgages,so it cannot foreclose neither can MERS assign any power it does not have.the property is mortgaged to MERS,but MERS is a mortgagee which does not own mortgages,or notes,or transfer interests,by a mortgage contract that made MERS, and only MERS,the only mortgagee,in spite of all it’s impotency and inabilities, It is as if i put someone who is in a coma in charge of my life.

  3. $450,000 in funds paid to get judges elected by the assoc of realtors helps, huh?

    MI historically is a state that permits the financial raping of clients. I am SO not surprised. Also, our past two AG’s are worthless when it comes to any relevant activities associated with their oath to protect consumers. Sad, sad state.

  4. Three judges would have granted leave to appeal in this case. But, this case clearly demonstrates that courts look to state law to interpret MERS. Which means, if state law was shabbily written, antiquated, and vague as is the case here, need to find federal law to preempt.

    I am not an attorney but, the only federal law that I know of that could override is the TILA Amendment and accompanying Federal Reserve Opinion (CFR) (codified as rule) that states who is not the creditor by Fed Res opinion. TILA is a defense to foreclosure.

    Congressional intent of the TILA Amendment was for the creditor to be identified so that borrower could directly negotiate with his/her creditor. And, in BK the creditor must be also identified.

    Anyone else know of any federal law that could preempt vague and antiquated state laws???

  5. RELS REPORTING SERVICES, L.L.C.
    Business Type
    Limited Liability Company (Foreign) MN Statute
    322B File Number
    1251-LFC Home Jurisdiction
    Iowa Filing Date
    9/28/1998 Status
    Active / In Good Standing Renewal Due Date:
    12/31/2013 Registered Office Address
    100 S 5th Str #1075
    Mpls MN 55402
    USA Registered Agent(s)
    C T Corporation System Inc Manager
    Stan Baldwin
    12395 First American Way
    Poway CA 92064
    Principal Executive Office Address
    10400 Yellow Circle Drive, Ste. 400
    Minnetonka MN 55343

    Home Office Address
    C/O Wells Fargo Home Mortgage div Wells Fargo Bank NA or
    C/O Fidelity National or
    C/O First America Financial or
    c/o First American Exchange Company or?

    1 Home Campus MS 122481
    Des Moines IA 50328 0001
    USA

    Filing History
    9/28/1998 Original Filing – Limited Liability Company (Foreign)
    9/28/1998 Limited Liability Company (Foreign) Business Name
    11/13/1998 Limited Liability Company (Foreign) Business Name
    7/9/1999 Limited Liability Company (Foreign) Mailing Address
    6/12/2000 Limited Liability Company (Foreign) Biennial Renewal
    4/10/2007 Registered Office and/or Agent (Global) – Limited Liability Company (Foreign

  6. Minnesota Business Name
    Rels Settlement Services
    Business Type
    Assumed Name MN Statute
    333 File Number
    3353759-2 Home Jurisdiction
    Minnesota Filing Date
    5/26/2009 Status
    Active / In Good Standing Renewal Due Date:
    05/26/2019 Registered Agent(s)
    (Optional) None provided Principal Place of Business Address
    5700 Smetana Drv #400
    Mtka MN 55343
    USA Nameholder Nameholder Address
    ATI Title Company LLC 5700 Smetana Drv #400, Mtka, MN 55343

  7. Business Type
    Assumed Name MN Statute
    333 File Number
    932196-2 Home Jurisdiction
    Minnesota Filing Date
    6/8/2004 Status
    Active / In Good Standing Renewal Due Date:
    06/08/2014 Registered Agent(s)
    (Optional) None provided Principal Place of Business Address
    5700 Smetana Drv #400
    Mtka MN 55343
    USA Nameholder Nameholder Address
    ATI Title Company LLC 5700 Smetana Drv #400, Mtka, MN 55343

  8. Business Type
    Trademark MN Statute
    333 File Number
    1155490-2 Filing Date
    12/22/2004 Status
    Active / In Good Standing Renewal Due Date:
    12/22/2014 Registered Agent(s)
    (Optional) None provided Classification Number
    36 Used For
    title searching, closing and post-closing services etal Date First Used in Minnesota
    11/08/2004 Logo Description
    “Rels” preceded by 4 rectangles forming a square

    Markholder Markholder Address
    RELS Reporting Services LLC 5700 Smetana Drv, Mtka, MN 55343

  9. Business Type
    Trademark MN Statute
    333 File Number
    1155488-2 Filing Date
    12/22/2004 Status
    Active / In Good Standing Renewal Due Date:
    12/22/2014 Registered Agent(s)
    (Optional) None provided Classification Number
    35 Used For
    real estate appraisal & valuation services; providing title etal Date First Used in Minnesota
    11/08/2004 Logo Description
    “Rels” preceded by 4 rectangles forming a square

    Markholder Markholder Address
    RELS Reporting Services LLC 5700 Smetana Drv, Mtka, MN 55343

  10. MINNESOTA. REVENUE
    August 5,2007
    County Auditor/Treasurer
    Bill Lonergan
    651-556-4721

    Loans foreclosed in the name of “MERS.”
    About “MERS”
    Mortgage Electronic Registration Systems, Inc.
    “MERS,” was set-up by the banking industry to
    improve the mortgage process.
    The “MERS” system allows loans and loan servicej to be traded
    without the need for filing additional documents every time there is a change in either the
    servicing of the loan or the ownership.
    Loans foreclosed in the name of “MERS.”
    1.) An attorney will foreclose and bid on property at sheriffs sale in the name of “MERS.”
    Sheriffs Certificate of Sale- Exempt from Deed Tax.
    2.) Sheriffs Certificate will then be assigned from “MERS” to the owner of mortgage(i.e. bank).
    Because of “MERS” nominee relationship with the owner of the mortgage only the minimum tax
    would be due on the assignment.
    If you have any questions, please call me at (651) 556-4721.
    Tet

  11. Wow! This is a big blow to the millions of struggling homeowners across our nation. Very disgusted and disappointed with this ruling. Once again, he with the biggest and deepest pockets always win…

  12. Wow this is a terrible blow to the homeowners! And once again, he with the biggest and deepest pockets wins!!

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