Banks Trying to Get Bill Through Congress Protecting MERS

Editor’s Comment: It is no small wonder that the banks are scared. After all they created MERS and they control MERS and many of them own MERS. The Washington Supreme Court ruling leaves little doubt that MERS is a sham, leaving even less doubt that an industry is sprouting up for wrongful foreclosure in which trillions of dollars are at stake.

The mortgages that were used for foreclosure are, in my opinion, and in the opinion of a growing number of courts and lawyers and regulatory agencies around the country, State and Federal, were fatally defective and that leads to the conclusion that (1) the foreclosures can be overturned and (2) millions of dollars in damages might be payable to those homeowners who were foreclosed and evicted from homes they legally owned.

But the problem for the megabanks is even worse than that. If the mortgages were defective (deeds of trust in some states), then the money collected by the banks from insurance, credit default swaps, federal bailouts and buyouts and other hedge instruments pose an enormous liability to the large banks that promulgated this scam known as securitization where the last thing they had in mind was securitization. In many cases, the loans were effectively sold multiple times thus creating a liability not only to the borrower that illegally had his home seized but a geometrically higher liability to other financial institutions and governments and investors for selling them toxic waste.

There is a reason that that the bailout is measured at $17 trillion and it isn’t because those are losses caused by defaults in mortgages which appear to total less than 10% of that amount. The total of ALL mortgages during that period that are subject to claims of securitization (false claims, in my opinion) was only $13 trillion. So why was the $17 trillion bailout $4 trillion more than all the mortgages put together, most of which are current on their payments?

The reason is that some bets went well, in which case the banks kept the profits and didn’t tell the investors about it even though it was investor with which money they were betting.

If the loan went sour, or the Master Servicer, in its own interest, declared that the value of the pool had been diminished by a higher than expected default rate, then the insurance contract and credit default contract REQUIRED payment even though most of the loans were intact. Of course we now know that the loans were probably never in the pools anyway.

The bets that ended up in losses were tossed over the fence at the Federal Government and the bets that were “good” ended up with the insurers (AIG, AMBAC) having to pay out more money than they were worth. Enter the Federal Government again to make up the difference where the banks collected 100 cents on the dollar, didn’t tell the investors and declared the loans in default anyway and then proceeded to foreclose.

The banks’ answer to this knotty problem is predictable. Overturn the Washington Supreme Court case and others like it appellate and trial courts around the country by having Congress declare that the MERS transactions were valid. The biggest hurdle they must overcome is not a paperwork problem —- it is a money problem.

In many if not most cases, neither MERS nor the named payee on the note nor the “lender” identified on the note and mortgage had loaned any money at all. Even the banks are saying that the loans are owned by the “Trusts” but it now appears as though the trusts were never funded by either money or loans and that there were no bank accounts or any other accounts for those pools.

That leaves nothing but nominees for unidentified parties in all the blank spaces on the note and mortgage, whose terms were different than the payback provisions promised to the investor lenders. And THAT means that much of the assets carried on the books of the banks are simply worthless and non-existent AND that there is a liability associated with those transactions that is geometrically higher than the false assets that the banks are reporting.

So the question comes down to this: will Congress try to save MERS? (I.e., will they try to save the banks again with a legal bailout?). Will the effort even be constitutional since it deals with property required to be governed under States’ rights under the constitution or are we going to forget the Constitution and save the banks at all costs?

When you cast your ballot in November, remember to look at the candidates you are considering. If they are aligned with the banks, we can expect slashed pension benefits next year along with a whole new round of housing and economic decline.


34 Responses

  1. I got this site from my pal who told me about this web site
    and at the moment this time I am visiting this web site and reading very
    informative articles at this time.

  2. Stop Venting Trash and start Googleing the Illinois Case and Case Law. Better Yet… Get an Attorney! You can not just set here on your Carcus and expect to get someone to do your work for you without getting paid, they have living expenses to….. Hire a Lawyer … Knucklehead!

  3. The reason all this Must and Will come to an end soon is the “Greedy Servicer Banks” are using Invester money to litigage the homeowners. And at the same time … they are using Taxpayer money to litigate the Investors. Whie at the same time …pocketing homeowners payments after collecting the Ins on Defaults from the Ins Companys we taxpayers bailed out. We are in a vicious cycle of sueing ourselves while Wall Street Gorges itself with our wealth and that of many generations to come.

  4. Only a Note Holder can transfer authority to FC, and ONLY if the Note Holder also holds the Security (lien on title/mortgage/dot) Folks are tired of boogymen jumping out from behend the Mers Curtain and making false claims when they dont even have the authority to even wipe their own butts. Just Sayin…

  5. Central Mtge. Co. v. McClelland
    [b]ecause MERS was never the lawful holder of the notes described and identified in the consolidation agreement, the corrected assignment of mortgage is a nullity, and MERS was without authority to assign the power to foreclose to the plaintiff.”

  6. It is however Ironic that the Benificiary to the Lender Title Ins Policy is MERS …. and yet they want immunity when they tainted our titles by the hand of the pretenders. The Servicers and MERS are one in the same. Your newest servicer claims why should they be responsible for what the previous servicer done via Mers. And now they want immunity for Mers (their own inside house Mers officers .. who Forge! Forge! Forge!). Its time to Bring Mers Down and restore the Law of the Land. The current servicer uses their Mers officers to forge forge forge more docs to cover up the previous forged docs. They Must Pay! Stop dumping the Crap on Homeowners, Investors & taxpayers! I see MERS as standing for … a Rental Agency of homes with Trashed Titles.

  7. Mass Resident, Lender Title Policies are never in the borrowers Closing Package. There is no way a closing agent would know this. I dont think you mean Title Closing Agents ….. What you mean is the Title Insurance Agent.

  8. Yeah… ok…… Did anyone read or see any report/story about Obama accepting millions of dollars from Bank of America and Wells Fargo for the Democratic National Convention? I read it in a Bloomberg article. AND without this money the convention would not have happened?? The only other coverage that I saw was local: in North Carolina. ( this does not mean I support Romney either). I find the whole thing disgusting.

    MERS riddle: Has anyone checked their “Lender’s Title Policy”? The one you paid for? The beneficiary is and I quote “MERS as nominee for the Originator (insert name here)”. No succesor/assigns language.
    How can a questionable database be the beneficiary of an insurance policy???? Anyone???

    And what does this speak to as far as the title/closing agent’s being invloved in this up to their eyeballs.

    Please chime in anytime.

  9. @Concerned

    Except that I don’t have a gate. Typical midwest house, with a front lawn and a driveway. And I can’t block my phone since I use it for work. It’s going to be 6 long weeks.

  10. @ Enraged

    Gee, I’m in CA but certain times of year I really find a front gate with a padlock stops a whole bunch of annoyances.

  11. SC,

    No, not upset. Very busy and still not getting ahead. And elections coming, which means phone calls, text messages, knocks on my door, it never stops. See, I am in THE state candidates must ab-so-lu-te-ly win to win the election (nobody has ever been elected without winning Ohio). You have no idea how harassed we can be!

  12. Are you ok Enraged? You seem upset today? I have a sticky keyboard to. I have to replace it a couple time a year courtsy of my 5 grandsons ages 2-7. What can I say … I Love those sticky little Fingers.

  13. Enraged
    Ya, sorry its awful i know lol..,I’m dealing with a frikin 50 yrs , bad eyes Now without 1.75 ,and none handy right now and On the iPhone. The only drawback I think I did good considering,
    I was kiddin re Romney but who else ???? I’m NO fan …And so make your vote count
    You can’t possibly know what I’m dealing with you can Perhaps relate but you don’t know , what we are all processing is very
    personal and not easy. Nothing is what it seems that’s for sure Im not sure i have any business being On here other than I hope to support in some way i hope to pick up good points … And i sure have, not always …but otherwise I would not be here . I know there’s reason for everything because we are all going home one day , our real home – The one within.
    Deb Wynn out. For today

  14. Deborah,

    You’re dealing with a frickin’, sticking keyboard too?

  15. I would vote for the guy that kills this bill but petnanantly with absolute assurance that it would never resurface and mers declared illegal. Forever.

  16. The word honest is tongue in cheek.
    I heard apple was liking payment in yuen. Im. Not sure I even spelled that right I’m so not wanting to get used to it

  17. Found out there is a companion bill, HR 3644. Call your Congressmen and tell them to KILL THE BILL.

    We need to kill S.1834 & HR 3644.

    Let’s do this, People!

  18. @enraged
    It might be the. Honest yuen we need to get by if we are talking currency. The barter system may become trendy. I’ll get my cash out anyway.

  19. Enablers. All of us. No excuse.

  20. Oops, I meant @Rabi… Darn keyboard!

  21. @Tabbi,

    ToLLe and I would prefer Carlin’s method: the handsaw. To make them feel our pain as they go down.

  22. Need to develop a list of candidates who are ” bank-maligned” I mean “bank aligned”, such that we do not vote for them. In fact prepare the political guillotine for them.


  24. @All,

    I posted something a few weeks ago about something big about to happen where banks would announce a cyber attack and close for the weekend. You wouldn’t be able to access your account and on the Monday, the account would be swept clean.

    I am not an alarmist by nature but given what we are going through, government is still deeply in bed with banks. i don’t have any advice to give but it may be a pretty good idea to withdraw enough cash from your account to hold on for a couple of weeks. Because the way I see it, either it is true, in which case we are being prudent, or it is not true and we haven’t lost anything being prudent…

    Major Banks Hit with Biggest Cyberattacks in History
    By CNNMoney
    Posted 3:36PM 09/27/12
    Posted under: Company News, JP Morgan Chase, Bank of America, Wells Fargo & Co
    Bank of AmericaBy David Goldman

    NEW YORK (CNNMoney) — There’s a good chance your bank’s website was attacked over the past week.

    Since Sept. 19, the websites of Bank of America (BAC), JPMorgan Chase (JPM), Wells Fargo (WFC), U.S. Bank (USB) and PNC Bank (PNC) have all suffered day-long slowdowns and been sporadically unreachable for many customers. The attackers, who took aim at Bank of America first, went after their targets in sequence. Thursday’s victim, PNC’s website, was inaccessible at the time this article was published.

    Security experts say the outages stem from one of the biggest cyberattacks they’ve ever seen. These “denial of service” attacks — huge amounts of traffic directed at a website to make it crash — were the largest ever recorded by a wide margin, according to two researchers.

    Banks get hit by cyberattackers all the time and typically have some of the best defenses against them. This time, they were outgunned.

    “The volume of traffic sent to these sites is frankly unprecedented,” said Dmitri Alperovitch, co-founder of CrowdStrike, a security firm that has been investigating the attacks. “It’s 10 to 20 times the volume that we normally see, and twice the previous record for a denial of service attack.”

    To carry out the cyberattacks, the attackers got hold of thousands of high-powered application servers and pointed them all at the targeted banks. That overwhelmed Bank of America and Chase’s Web servers on Sept. 19, Wells Fargo and U.S. Bank on Wednesday and PNC on Thursday. Fred Solomon, a spokesman for PNC, confirmed that a high volume of traffic on Thursday was affecting users’ ability to access the website, but he declined to go into more detail.

    Denial of service attacks are an effective but unsophisticated tool that doesn’t involve any actual hacking. No data was stolen from the banks, and their transactional systems — like their ATM networks — remained unaffected. The aim of the attacks was simply to temporarily knock down the banks’ public-facing websites.

    To get hold of all the servers necessary to launch such huge attacks, the organizers needed to plan for months, Alperovitch said. The servers had to be compromised and linked together into a network called a “botnet.”

    That level of pre-planning is a deviation from the kinds of denial of service attacks launched at banks in the past by so-called “hacktivists.” Typically, hacktivists use home PCs infected with malware to amass their botnets. Attacks on this scale would be impossible to carry out with home PCs — users too frequently turn them off or disconnect them from the Internet.

    The Islamist group Izz ad-Din al-Qassam Cyber Fighters publicly claimed responsibility for the attacks in what it called “Operation Ababil,” but researchers are divided about how seriously to take their claims. The group has launched attacks in the past, but those have been far less coordinated than the recent batch.

    Sen. Joe Lieberman, an Independent from Connecticut, said in a C-SPAN interview on Wednesday that he believed the attacks were launched by Iran.

    “I don’t believe these were just hackers who were skilled enough to cause disruption of the websites,” he said. “I think this was done by Iran … and I believe it was a response to the increasingly strong economic sanctions that the United States and our European allies have put on Iranian financial institutions.”

    A call requesting comment from the Department of Homeland Security’s cybersecurity office was not immediately returned.

    A cybersecurity firm following the attacks also expressed doubt about the connections between the Cyber Fighters and the bank attacks. On social networks and chat forums, the group urged its followers to use a mobile “low orbit ion cannon” — a software tool typically used by Anonymous and other hacktivist groups to direct a massive flood of traffic at a targeted site.

    That tool was not used in the attack, according to Ronen Kenig, director of security products at cloud security firm Radware.

    “Supporters of this group didn’t join in the attack at all, or they joined in but didn’t use that tool,” said Kenig. “The attack used a botnet instead.” He doesn’t think the Cyber Fighters would have access to a botnet as advanced as the one used by the attackers.

    But CrowdStrike’s Alperovitch said he is “quite confident” the perpetrator was the Izz ad-Din al-Qassam Cyber Fighters, since they announced each attack well before it was carried out, and the attack wasn’t that sophisticated — it just took significant planning. PNC was the last target on the lists the Cyber Fighters have circulated, but more attacks could still be coming.

    Both researchers agree that the controversial anti-Muslim YouTube video was not the initial impetus for the attacks, as the Cyber Fighters claimed in messages recruiting volunteers to join in. Before the video was even released, the group claimed responsibility for similar attacks.

    “The video is simply an excuse,” Alperovitch said. “It’s a red herring.”

  25. Description of Romneys Business Head … Its worn in his Britches, well below the shoulders. Via Bain Capital…Romney and his co-horts buy up (and steal) proffitable US businesses. They suck the capital dry and drown the company in debt with taxpayers dollers backing the loans. The Crooks take all the stolen money and move it over seas to create jobs there where labor is cheaper and profit is higher. Then comes the Big Bain Bankruptcy Bomb! Knowing those employees would lose jobs and could not meet thier mortgage payments … where do you think Romney invested his share? Of course He Did! He bet that the employee/homeowner would fail!! Why in tarnations do you think he REFUSES to release his tax returns … LOOK AT THE FULL PICTURE BEFORE YOU DECIDE WHOSE THE LESSOR OF TWO EVILS.

  26. Well, I see that several of the comments are just what I was thinking: BOTH PARTIES are aligned with the BANKS and WALL STREET.

    Since we don’t as YET have a VIABLE THIRD PARTY, we need to research the ones running to see if things would be better or worse with a CHANGE? Would 4 more with the current idiot be worse than the opponent?

    After this ballot is cast, can we SOMEHOW get a VIABLE THIRD PARTY formed? One that is not controlled by some ‘fringe group’?

  27. MERS is the bad gene it runs through the life blood of rights to real property and land

  28. Java
    At least Romney has a business head. Worse of the evils. We can not have another term of Obama nothing could be worse.

  29. Java
    At least Romney has a business head. Worse of the evils. We can have another term of Obama nothing could be worse.

  30. The fraud is becoming very obvious even to those not looking. Just in case you thought there were some “honest” people in Congress, if protection for MERS passes, you will know exactly who is NFG.

  31. “So the question comes down to this: will Congress try to save MERS?”: Yes since people sit in front of the tube instead of contacting their reps.

    “If they are aligned with the banks, we can expect slashed pension benefits next year along with a whole new round of housing and economic decline.” Who’s not, aside from Ron Paul who is not running? Are we supposed to vote blank on everyone running? Got a better alternative?

  32. When you cast your ballot in November, remember to look at the candidates you are considering. If they are aligned with the banks, we can expect slashed pension benefits next year along with a whole new round of housing and economic decline.

    I see the 2 main candidates are BOTH alligned with the banks !!!

  33. This is War against the people

  34. What? They dont want the investor to sue MERS for transferring title to two seperate banks without their instructions to do so?. What! They dont want the invesotr to sue MERS for transferring/selling the Note they were promised to two seperate parties without authority? How is that Possible? What? They dont want the homeowner who is left in Jeperady of paying multiple mortgages to sue them? No .. It can be True! Burn the Mers Bill and Take away the seats of those who vote for it! Because those who vote for the Bill made Millions themselves! Are they kidding … cant sue … ? Stick to Land Law .. its worked for us for Hundreds of Years…

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