Skip to main content

Delaware joined what is becoming a growing legal battle against the  mortgage industry today, charging in a Chancery Court suit that consumers facing foreclosure were purposely misled and deceived by the company that supposedly kept track of their loans’ ownership.  By operating a shadowy and frequently inaccurate private database that obscured the mortgages’ true owners, Merscorp made it difficult for hundreds of Delaware homeowners to fight foreclosure actions in court or  negotiate new terms on their loans, the suit filed by the Attorney General’s Office said.

Read the article and feel the bile rising in your stomach. This is one more example where the game has been rigged and the 99% have been screwed to line the pockets of the 1%.

I can't resist quoting one more excerpt from Eric Ruth's article:

Also known as MERS -- Mortgage Electronic Registration Systems -- the national registry was established by investors,  banks and industry players in the 1990s to streamline the process of buying, selling and re-selling mortgages, a practice that grew ever more frenzied as the now-burst housing bubble expanded.

Yet  the company -- incorporated in Delaware and based in Reston, Va. -- is actually an industry “front” that frequently fails to accurately track the ownership transfers or even enforce its own rules on members,  leading to many cases where crucial legal documents were improperly “robo-signed” by employees at the various member banks, the suit said.

Attorneys General throughout the country are increasingly on the cutting edge of fighting on behalf of the 99%.  While we have been critical at Delaware Liberal of some of Biden's actions in-state, he has consistently challenged the big-money interests on behalf of the rest of the taxpayer. Be it Bank of America, Blue Cross/ Blue Shield, and the rapacious mortgage industry, he is doing far more to promote the goals of #OWS than any other elected official in Delaware.

We salute him for it and urge him to keep it up.

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  Drip, Drip, Drip . . . (5+ / 0-)

    The hits keep coming.  I am glad to see that MERS is finally getting some exposure.  I like how it is described thusly:

    is  actually an industry “front” that frequently fails to accurately track  the ownership transfers or even enforce its own rules on members,  leading to many cases where crucial legal documents were improperly  “robo-signed” by employees at the various member banks,

    Not many people know of the existence of MERS.  The only reason I know of it is because they have been written about extensively here on Kos.

    Justice moves slowly at times.  Good for Beau Biden for taking action.

    In politics stupidity is not a handicap.

    by LynChi on Thu Oct 27, 2011 at 12:17:36 PM PDT

  •  MERS was created to avoid fees (13+ / 0-)

    "And because it tracks ownership among members electronically, it is able to avoid the transfer fees that traditionally were paid to county Recorder of Deeds offices in such transfers."

    This is often overlooked.  By not filling with local authorities they avoided title transfer fees and totally destroyed the government paper trail put in place to protect land owners, undermining centuries of property protection.

    This also cost counties millions of dollars.

    "The man who speaks to you of sacrifice is speaking of slaves and masters, and intends to be the master." Ayn Rand

    by aznavy on Thu Oct 27, 2011 at 12:27:01 PM PDT

    •  MERS has cost my county $22 million in fees (10+ / 0-)

      I live in Essex County, Mass. and the MERS is supposed to pay the County Registrar $75 for each change in title.

      Essex South Register of Deeds John O’Brien announced today that he will be seeking over $22 million dollars from the Mortgage Electronic Registration System, “MERS” which represents several major banking conglomerates.

      O’Brien bases the $22M number on the fact that the Salem registry has recorded over 148,663 MERS mortgages since 1998. After a careful review of a number of these mortgages O’Brien said it became very clear to him that MERS had assigned mortgages to other entities at least twice without paying a recording fee. Based on this information the taxpayers have been defrauded out of $22,299,450 in Southern Essex County alone.

       It is quite possible that in some cases they may have assigned the notes more than twice resulting in even greater loss of revenue. O’Brien called MERS “one of the greediest schemes ever perpetrated on the American people. They have compromised the integrity of the public land recordation system and in d

      oing so, have wreaked havoc on our economy”.

      Keep in mind this is only the southern part of the county. I live in the northern half where I believe the registrar of deeds is located in either Lawrence or Lowell. So we could well be looking at the theft of $45 million or more just from one county alone. If you add up all the local governments that MERS has ripped off, we're probably talking about tens of billions of dollars at least.

      •  Every single town owed fees should be suing MERS (4+ / 0-)
        Recommended by:
        gailwax, FindingMyVoice, WineRev, Pompatus

        I wonder if there could be a class action style suit on behalf of all the cities/towns that were screwed out of these fees by these criminals.

        Occupy is not fighting for the rights of a few to sleep outdoors, but for the right of millions to sleep indoors.(VanJones - I think from a tweet).

        by Actbriniel on Thu Oct 27, 2011 at 12:43:14 PM PDT

        [ Parent ]

        •  May be under way (4+ / 0-)
          Recommended by:
          LynChi, petral, wilderness voice, Sandino

          This site:MERS Lawsuits
          seems to compile these suits.

          And yes, this is a MAJOR chink in the banks' armor for 2 huge reasons.
          1) MERS was used to slice and dice all those mortgages packaged together and sold to chumps/other investors. Lost in the shuffle quite often was the "chain of title", that is, just who EXACTLY owns this property and the mortgage on it.
               This is important because Ohio and Florida courts (I know of those so far; I suspect there are others) have held, with ample justification, that if a mortgage holder cannot prove they hold a mortgage cleanly THEY CANNOT FORECLOSE.
               The banksters hate this but they are stuck on their own petard.

          2) As is being referenced in this diary and comments, when you buy real estate and take out a mortgage on it, the bank or other lender has (physically) go down to the courthouse of the county where the property is located and indicate they property has a lien on it (the mortgage). The county notes this and charges the bank something like $30. (One comment above says $75 in MA.)
                 When you pay off the mortgage/take out a second mortgage/home equity line of credit you go down to the courthouse and legally remove (in the case of a payoff) or add (in the other cases) the new liens on the property....and pay the county another $30 or so.
                Now, when the banksters set up MERS to launder their mortgages they sliced and diced all those mortgages into packages, right? They sold the packages to others, right? Some of these others were banks and THEY sliced and diced and RE-packaged them all over again, right? And all these little pieces of YOUR mortgage were sold to somebody as part of a larger package, who sold them to someone else, right?
                By law, EVERY ONE of those sales in EVERY ONE of those slices and dices REQUIRES the mortgage holder (even if its just a teeny-tiny piece of the mortgage) to PHYSICALLY go down to the courthouse, put the new lien on the property AND PAY THE COUNTY ITS FEE!

          This is EXACTLY what MERS was set up to evade. MERS was(and is BEING) used to commit FRAUD against the counties.....and the counties are suing to get their fees. There's one case out in Nevada in federal court I read about this spring here at KOS that has cleared the opening hurdles and is on the calendar. Other counties around the country are joining because the amount in fees at stake nationwide amounts to nearly $2Trillion (with a capital "T")!

          The bank bailout (signed by BUSH you Reidhvingers!) was $700 billion. This is 3 times larger! This is REALLY serious money.

          Andddd........if the counties win, that means a $2 Trillion stimulus to the American economy being applied at the local level, while those bastards who are holding/hoarding their dollars just to try to stall the economy and unseat Obama will be body slammed in their balance sheets.

          Sounds like a win-win to me. Go Beau Biden! Rip the cover off and follow the money!


          "God has given wine to gladden the hearts of people." Psalm 104:15

          by WineRev on Thu Oct 27, 2011 at 01:53:27 PM PDT

          [ Parent ]

    •  And cities/towns are desperate for funds (1+ / 0-)
      Recommended by:

      I wonder why.....bastards.

      Occupy is not fighting for the rights of a few to sleep outdoors, but for the right of millions to sleep indoors.(VanJones - I think from a tweet).

      by Actbriniel on Thu Oct 27, 2011 at 12:42:04 PM PDT

      [ Parent ]

  •  Bless Beau Biden (7+ / 0-)

    and also AG Schneiderman of New York.  

    They are true American Heroes - We need to let them know we've got their backs.

    Occupy is not fighting for the rights of a few to sleep outdoors, but for the right of millions to sleep indoors.(VanJones - I think from a tweet).

    by Actbriniel on Thu Oct 27, 2011 at 12:41:21 PM PDT

  •  Thanks for the good news! (2+ / 0-)
    Recommended by:
    Delaware Dem, LynChi

    More of this!!!!!

    Be the change you want to see in the world. -Gandhi

    by DRo on Thu Oct 27, 2011 at 12:42:53 PM PDT

  •  thank God! Go, Beau, Go! (1+ / 0-)
    Recommended by:

    Now we know why he didn't run for Congress.

    Being ignored is the difference between being a one percenter and an American.--sweeper

    by SouthernLiberalinMD on Thu Oct 27, 2011 at 01:09:27 PM PDT

  •  HOORAY! MERS is a kingpin (1+ / 0-)
    Recommended by:

    designed by the Mortgage industry, without which the entire housing debacle could not have transpired.

    This November, 2008 spells out the MERS problem if you re facing foreclosure

    Save Homes from Foreclosure, Here's How - Please Share With Others

    It's difficult to be happy knowing so many suffer. We must unite.

    by War on Error on Fri Oct 28, 2011 at 08:26:28 AM PDT

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site