Listen to This! 6PM The Fannie Mae-MERS Flush — The Neil Garfield Show

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Going back to even 2011 and before, approximately half of the mortgages owned or guaranteed by Fannie Mae were registered in the Mortgage Electronic Registration Systems (MERS). And the loan value on the official books for such loans was and undoubtedly still is over a trillion dollars.

And the value of all loans traded and refinanced during that period is over $20 Trillion. And the “value” of the derivative instruments on that was over $250 Trillion —- which is more than all the actual money in the world by a factor of 3. Those instruments remain as 1/4 of the entire shadow banking market. They are presently not subject to regulation even though by any reasonable analysis they are securities requiring adequate disclosure for the sale of any security.

In a recent deposition in a case Bill is associated with, a Fannie Mae official essentially admitted under oath that there is no agency relationship between MERS and Fannie Mae.

This is a potential bombshell for borrowers, in that it exposes how MERS is used by purported holders of notes and associated mortgages or deeds of trust to bypass recording statutes in that MERS is allowed to do what we have discussed on this show many times: record property interests in states near and far through robosigning and associated sleights of hand.

Yet what this deposition admission shows is that the mortgage entities using MERS, such as Fannie Mae, under the pressure of being under oath are subject to disclaiming the existence of a true agency relationship between MERS  and the purported ‘lender’.

To put it plain terms — if FANNIE has no agency relationship with MERS on loans it claims to own, then MERS has no right to be executing any documents of transfer of the mortgage after the date on which Fannie allegedly became the owner. And don’t take their word for it. In many of my cases on cross examination the robowitness testified that Fannie was the investor “from the start.”

See Neil’s Blog–and tune into the Show today–for further details.


Also see then following statement issued by R.K. Arnold CEO of MERS in 2010  containing numerous misrepresentations of fact and law and some admissions against interest. I would hasten to add that the fact that MERS was NOT named as claimant in a foreclosure does not make any assignment executed purportedly on behalf of MERS valid or truthful nor does it create any legal rights. Despite the lies contained in the following statement, MERS has never processed, received, transmitted or delivered any money or documents in connection with any loan. Any document stating or implying the contrary is a living lie.

3 Responses

  1. Once again Neil! Thank you.
    I hope that you stay on this subject matter.

  2. Fannie & Freddie were privately owned until the Fed Gov seized them and now they admit no agency relationship, but we know for a fact that Ginnie can never originate, buy or sell a mortgage loans and have admitted this but they are receiving the foreclosure proceeds from Wells Fargo Bank on the 1.3 million Fed Gov loans that WAMU pooled into their Ginnie Mae MBS.

    Had Wells simply modified the loans there would not be this issue because new Notes would have been issued as with titles!

  3. This is why the government is afraid of total financial meltdown. They bucked it once, but if ever disclosed the threat is back.

    All derivatives — yes, derived from securities, but derivatives are (debt buying) contracts. NO regulation. NONE.

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