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View Diary: Bombshell MERS Ruling:Process Illegal (144 comments)

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  •  that is the plan bink, and if anyone doesn't (4+ / 0-)
    Recommended by:
    alizard, KJG52, Actbriniel, yaque

    get that, then they don't get what is really going on here:

    The idea behind MERS was to wipe away centuries of legal tradition that mandated the physical transfer of loan notes and ownership information. Whereas lenders once were required to physically register with county clerk offices every time a mortgage loan was extended or re-sold, MERS provided an "electronic registry" of mortgage notes where all such transfers were recorded in the wiry brain of a giant computer instead of on paper.

    Instead of the individual banks or lenders registering with the counties each time a loan was sold or re-sold, MERS would handle the initial registration and then become the "nominal" note-holder. Then, each time the note was passed on, MERS would record the transaction in its computer -- but no matter who the actual owner of the note was, MERS would remain the legally registered assignee of the note.

    WAPO – The “Great MERS Whitewash Bill”, Aggressive Lobbying Defends Mortgage-Trading System

    Posted by Foreclosure Fraud on November 21, 2010 · 6 Comments

    Aggressive Lobbying Defends Mortgage-Trading System

    By Ariana Eunjung Cha and Brady Dennis

    Washington Post Staff Writers
    Thursday, November 18, 2010; 11:10 PM

    The financial services industry has launched an aggressive campaign on Capitol Hill to bolster the legality of the way companies have turned mortgages into securities and traded them across the globe in recent years.

    The companies have opened wide their wallets for lobbying and are flying top executives to Washington for one-on-one meetings with lawmakers. They are holding briefings for key staffers, including an event last week that drew more than 60 aides. And they are blanketing Congress with white papers, memos and other documents that lay out their arguments.

    The focal point of their efforts is Mortgage Electronic Registration Systems, or MERS, the controversial, privately run electronic database that is used by practically every lending institution and investment company to track the transfer of the ownership of mortgages as they are packaged into securities and traded at lightning speed around the globe.

    But MERS does more than just track the trading of loans. In the vast majority of mortgage documents at local courts and offices across the country, it is listed as the holder of the loans. That allows the financial industry to trade mortgages as much as it wishes without spending the time and money to refile the paperwork.

    The industry is seeking legislation that would effectively affirm MERS’s legality and block any bill that would call into question what MERS does. MERS has spent more than $1 million in lobbying since fall 2008, when lower courts around the country began to rule against it. But MERS had kept its name under the radar until the recent uproar over foreclosures revealed broad problems in mortgage paperwork.

    The lobbyists are in full swing on this new deal, to make MERS legal, and if that happens, then what we are really looking at is centuries of the most basic principals of contractual laws for property rights being destroyed, right in front of our eyes.

    So does, Tom Miller, and all of the other 49 State US Attorney's all turning a blind eye, to what is going on now finally make sense to anyone here?  Crikey, at first they were all over this, because after all, it directly affects the basic tax revenues of their States, cities and towns, but isn't it strange, I mean, really strange, how they changed their minds so quickly on all of this?  One day all these US State Attorney's are swearing that 'people will go to jail' for this obvious fraud, and then, wow.....they turned on a dime.  

    It smells to high heaven.  It just disgusts me.  

    Ms. B.

    “I hope the two wings of the Democratic Party may flap together.” William Jennings Bryan

    by Badabing on Mon Feb 14, 2011 at 08:17:13 PM PST

    [ Parent ]

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