Statement by CEO of Mortgage Electronic Registration Systems (MERS) “The MERS System is not fraudulent, and MERS has not committed any fraud.”

Statement by CEO of Mortgage Electronic Registration Systems (MERS)

RESTON, Va.–(EON: Enhanced Online News)–Mortgage Electronic Registration Systems (MERS) Chief Executive Officer R.K. Arnold today issued the following statement regarding the organization and clarifying certain aspects of its operations:

“The MERS System is not fraudulent, and MERS has not committed any fraud.”

“MERS is one important component of the complex infrastructure of America’s housing finance system. Billions of dollars of mortgage money flow through the financial system every year. It takes many, often-unseen mechanical processes to properly get those funds into the hands of qualified homebuyers.

Technology designed to reduce paperwork has a very positive effect on families and communities. They may not see it, but these things save money and time, creating reliability and stability in the system. That’s important to keep the mortgage funds flowing to the consumers who need it.

With millions of Americans facing foreclosure, every element of the housing finance system is under tremendous strain. What we’re seeing now is that the foreclosure process itself was not designed to withstand the extraordinary volume of foreclosures that the mortgage industry and local governments must now handle.

MERS helps the mortgage finance process work better. The MERS process of tracking mortgages and holding title provides clarity, transparency and efficiency to the housing finance system. We are committed to continually ensuring that everyone who has responsibilities in the mortgage and foreclosure process follows local and state laws, as well as our own training and rules.”

Facts about MERS

(NOTE TO EDITORS: The following is attributed to MERS Communications Manager Karmela Lejarde)

FACT: Courts have ruled in favor of MERS in many lawsuits, upholding MERS legal interest as the mortgagee and the right to foreclose.

This legal right springs from two important facts:

1) MERS holds legal title to a mortgage as an agent for the owner of the loan
2) MERS can become the holder of the promissory note when the owner of the loan chooses to make MERS the holder of the note with the right to enforce if the mortgage loan goes into default.

MERS does not authorize anyone to represent it in a foreclosure unless both the mortgage and the note are in MERS possession. In some cases where courts have found against MERS, those cases have hinged on other procedural defects or improper presentation of MERS’s legal interests and rights. Citations can be found at the end of this document.*

FACT: MERS does not create a defect in the mortgage or deed of trust

Claims that MERS disrupts or creates a defect in the mortgage or deed of trust are not supported by fact or legal precedents. This is often used as a tactic by lawyers to delay or prevent the foreclosure. The mortgage lien is granted to MERS by the borrower and the seller and that is what makes MERS the mortgagee. The role of mortgagee is legal and binding and confers to MERS certain legal rights and responsibilities.

FACT: The trail of ownership does not change because of MERS

MERS does not remove, omit, or otherwise fail to report land ownership information from public records. Parties are put on notice that MERS is the mortgagee and notifications by third parties can be sent to MERS. Mortgages and deeds of trust still get recorded in the land records.

The MERS System tracks the changes in servicing rights and beneficial ownership. No legal interests are transferred on the MERS System, including servicing and ownership. In fact, MERS is the only publicly available comprehensive source for note ownership.

While this information is tracked through the MERS System, the paperwork still exists to prove actual legal transfers still occurred. No mortgage ownership documents have disappeared because loans were registered on the MERS System. These documents exist now as they have before MERS was created. The only pieces of paper that have been eliminated are assignments between servicing companies because such assignments become unnecessary when MERS holds the mortgage lien for the owner of the note.

FACT: MERS did not cause mortgage securitization

MERS was created as a means to keep better track of the mortgage servicing and beneficial rights as loans were getting bought and sold at a high rate during the late 1990s.

At the height of the housing market, low interest rates prompted some homeowners to refinance once, twice, even three times in the space of months. Banks were originating loans at more than double their usual rate. Assignments – the document that names the holder of the legal title to the lien – primarily between servicing companies, were piling up in county land record offices, awaiting recording. Many times the loans were getting refinanced before the assignments could get recorded on the old loan. The delay prevented lien releases from getting recorded in a timely manner, leaving clouds on title.

MERS was created to provide clarity, transparency and efficiency by tracking the changes in servicing rights and beneficial ownership interests. It was not created to enable faster securitization. MERS is the only publicly available source of comprehensive information for the servicing and ownership of the more than 64 million loans registered on the system. The Mortgage Identification Number (MIN), created by MERS, is similar in function to a motor vehicle VIN, which keeps track of these loans. Without MERS the current mortgage crisis would be even worse.

FACT: Lenders cannot “hide” behind MERS

MERS is the only comprehensive, publicly available source of the servicing and ownership of more than 64 million loans in the United States. If a homeowner needs to identify the servicer or investor of their loan, and it is registered in MERS, they can be helped through the MERS website or via toll-free number at 888-679-6377.

FACT: MERS fully complies with recording statutes

The purpose of recording laws is to show that a lien exists, which protects the mortgagee and any bona fide purchasers. When MERS is the mortgagee, the mortgage or deed of trust is recorded, and all recording fees are paid.

*NOTABLE LEGAL VICTORIES:

a. IN RE Mortgage Electronic Registration Systems (MERS) Litigation, a multi-district litigation case in federal court in Arizona who issued a favorable opinion, stating that “The MERS System is not fraudulent, and MERS has not committed any fraud.”

b. IN RE Tucker (9/20/2010) where a Missouri bankruptcy judge found that the language of the deed of trust clearly authorizes MERS to act on behalf of the lender in serving as the legal title holder.

c. Mortgage Electronic Registration Systems, Inc. v. Bellistri, 2010 WL 2720802 (E.D. Mo. 2010), where the court held that Bellistri’s failure to provide notice to MERS violated MERS’ constitutional due process rights.

Contacts

Mortgage Electronic Registration Systems
Karmela Lejarde, 703-772-7156

Anyone care to rebut their facts???

You can even provide some facts of your own that they forgot to cover…

~

4closureFraud.org

Comments
23 Responses to “Statement by CEO of Mortgage Electronic Registration Systems (MERS) “The MERS System is not fraudulent, and MERS has not committed any fraud.””
  1. Robert Chaney says:

    In my son’s case: (I’ll be brief):

    On the day he signed the Note and Mortgage, the Note named Household Finance Corp. III as the “Lender.”
    On that day, an “allonge” was attached (unknown to my son at the time) to the Note, purportedly, transferring the Note to Decision One. On that day, the Mortgage named MERS as the “mortgagee.”

    Some time later, CitiFinancial held the Note. Then CitiMortgage held the Note (via a merger?). Citimortgage filed the foreclosure case and an “Assignment of Mortgage” (“AoM”) was executed two days later and recorded a month later. The AoM, purportedly, assigned the Mortgage, along with the Note, from MERS to Citimortgage. Evidently, Decision One and CitiFinancial never had possession or ownership of the Mortgage.

    One of my son’s defenses is that the note and mortgage were “bifurcated.” Thus, the Note became “unsecured” on the day he signed the Note and Mortgage.

    MERS is NOT transparent. My son can not get a complete “chain of title” from MERS. He can not get a chain of title from the Hall of Records, either.

    What a mess. The people who created the mess should pay the consequences… banksters!

  2. Jose says:

    These MERS people believe we all are stupid, or that we still continue to w=get our dose intravenously.
    Even if they did not directly acted on the fraud as a signer of the documents, by the same process that they did appoint their robo executives and secretaries. they gave blank check to a set of unscrupulous people to commit fraud using their name. As attorneys and the role they still play in the housin industry, theys erved as a voluntary shell for the fraud and are guilty either way. either by the fact of being a procuring cause and also by ommission.
    .

  3. Jose says:

    Just another conspiring and home stealing shell created in the most hostile state in the nation for home owners

    they have never paid a sent to Loudoun County, can they share their accounting to all of us?

  4. Jose says:

    Let me get this straight, they claim to hold the mortgage and the notes????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
    I have over 5000 copies of lost note affidavits signed by robosigners appointed by mers. NO NOTES.

  5. Sagittarius says:

    A brief study of Trust Law reveals some fatal flaws in the MERS argument. Even though borrowers entered into a debtor/creditor contract, the law of trust really governs the powers and relationships of the parties involved. No one seems to be questioning whether or not the laws of trust are being followed and there are many contradictions just in the deed of trust alone. First of all, MERS claims to be the beneficiary or nominee for the beneficiary under the deeds of trust. Beneficiaries, according to all leading authorative trust law sources, hold beneficial equitable title of the trust property NOT legal title. At closing, legal title was vested and conveyed to the Trustee named in the deed, typically a title company. A trust splits title to specific property in half, legal and equitable. Legal title almost always vests in the trustee. Beneficial title vests in the beneficiaries. If MERS is claiming beneficial status according to the deeds of trust, then it should be claiming equitable interests, not legal interests. But MERS never dares to claim the beneficial title to the deed or note because they were never granted beneficial title in the first place. There is no wording anywhere in a typical deed that conveys beneficial title to MERS. Only a beneficiary has the right to take trust property or authorize the trustee to sell trust property. MERS is ordering assignments, substitutions of trustee and foreclosure proceedings without being a true beneficiary with the RIGHT to compel a DUTY. At best MERS is a co-trustee holding legal title alongside the trustee named in the deed, usually a title company like Alliance, First American or Fidelity. But then MERS will say that it’s only acting as an Agent on behalf of the “lender” of record. However, an agency relationship is very different from a trustee relationship. The problem is the “lender” of record assigned its beneficial interest in the note within 3 months of closing. So who and where is the beneficiary? Could the beneficiaries secretly be Freddie and Fannie…hmm…only a beneficiary gets to take and Freddie and Fannie seem to be doing A LOT of taking these days. MERS is full of shit. It becomes whatever entity it needs to become in order to steal property it has no right to. How convenient. It’s one thing to claim to be a beneficiary, it’s another thing to prove it and MERS has no paper whatsoever to prove a beneficial interest.

  6. MARKER says:

    The fact that MERS has made a statement to defend its role and “Victories”, is a clear indication that their lunch is about to be eating by the legal community.

  7. Tim Barker says:

    Mers was created not to speed things up OR Mers was created to speed things up, make up your mind its one or the other.

  8. Tim Barker says:

    I am sorry but this articles keeps bugging me and I keep coming back to it to vent, so please pardon me.

    “Banks were originating loans at more than double their usual rate. Assignments – the document that names the holder of the legal title to the lien – primarily between servicing companies, were piling up in county land record offices, awaiting recording. Many times the loans were getting refinanced before the assignments could get recorded on the old loan. The delay prevented lien releases from getting recorded in a timely manner, leaving clouds on title.”

    and whos fault is that? it must be the deadbeat homeowners, if you were trying to help us then why wouldnt it have made more sence to create a law which we all know you seem to have plenty of power to change the rules as you go.

    why couldnt you have made a rule that you can not refinance for 6 months or even a year after a previous refi? so that our county records have the appropiate time to update prior instruments. seems fairly easy, right? No of course not because wall street wanted those loans ASAP to scam and defraud anyone willing to sign there name.

    then get this next paragraph he wrote, did you catch this part? “MERS was created to provide clarity, transparency and efficiency by tracking the changes in servicing rights and beneficial ownership interests. IT WAS NOT CREATED TO ENABLE FASTER SECURITIZATION

    Now didnt you just say about 6 sentences before this sentence, Mers was created because files were piling up in county land records causing a delay in new refinance deals, or in other words” I need to do this to speed up paperwork( or lack therof) so we can issue more toxic loans as soon as possible” condinsendling huh?

    was this guy just getting home from a long night drinking with his croonies?

  9. indio007 says:

    I’ll shoot it down anyway … I’m bored today :)

    IN RE MERS
    This is completely disengenious. The statement ” The MERS System is not fraudulent, and MERS has not committed any fraud” is the heading of a paragraph! Then it goes on to say “Plaintiffs have conceded this point”

    Secondly the Plaintiff pretty much sucked. Here’s another excerpt of the lack-luster pleading…
    “no facts were alleged showing any fraud was committed by MERS or in the MERS system.” …etc..
    “Plaintiffs fail to state a claim.”

    “Thus, due both a lack of an underlying fraud and insufficient allegations of conspiracy, the facilitation gloss advanced by Plaintiffs in their responses fails to save their claims for conspiracy to commit fraud. The Court will dismiss these claims for failure to state a claim.”

    Not much of a victory when the other side is unarmed LOL!

    http://scholar.google.com/scholar_case?case=16055101289176414591

    IN RE Tucker ,
    MERS presented the (allegedly) original note endorsed in blank at trial. The didn’t object to the authenticity or circumstances the acquisition of the note so pretty much any dolt would have prevailed.
    http://www.mow.uscourts.gov/bankruptcy/opinions/federman/Tucker_&_Gragg_Order_re_MERS_2.pdf

    Mortgage Electronic Registration Systems, Inc. v. Bellistri

    Can’t find this one but Tucker and RENKEMEYER v. Mortgage Electronic Registration Systems, Inc cite it.
    It’s not much of a legal mystery that anyone with an ANY interest, even an incorporeal one, deserves notice.
    There interest is one of duty. MERS needs notice in order to act on behalf it’s it’s principal and make the proper recordation.
    If this is what MERS considers victories , I am now even more of the opinion they are getting desperate.

  10. indio007 says:

    There is no need to refute it. This is just some guy’s self-serving opinion. It reeks of desperation. Let him and MERS make the statement under full personal and commercial liability then maybe I will take it seriously.

    The is a maxim of law that says “Sacrifice is the measure of credibility.”

    There is nothing to see here.

  11. Tim says:

    “creating reliability”

    OMG- I spit my coffee when I read that… too funny. Statements(lies) like that get my Irish up…

    • Tim says:

      “The MERS System is not fraudulent, and MERS has not committed any fraud.”

      Nor has it complied with the property recording statutes of each of the 50 states, creating clouded titles on millions of properties, as a result of the bifurcation of the Trust Deed and Note.

      I think MERS days are numbered, and the charade is coming to an end. Going forward, why would anyone with any knowledge of MERS, agree to sign loan documents where MERS takes attempts to take a Beneficial Interest in on the Trust Deed?

      Any bets on when MERS closes shop?

  12. Tim Barker says:

    “1) MERS holds legal title to a mortgage as an agent for the owner of the loan”
    (funny thats not what my mortgage says)
    2) MERS can become the holder of the promissory note when the owner of the loan chooses to make MERS the holder of the note with the right to enforce if the mortgage loan goes into default.
    ( really? and did they hand you my original note to store in a vault as the law requires)
    3) MERS does not create a defect in the mortgage or deed of trust
    ( it does if you dont have the original note and we know you dont)
    4) The trail of ownership does not change because of MERS
    ( really? and you recorded all the assignments in county records? funny, I have an alleged lender trying to foreclose that isnt listed on mers or in my county record, who is my lender?) ( really? you told me on my mortgage and promissary note that mers was my lender or showed me a dubious document to conceal the real party in intrest)
    5) MERS did not cause mortgage securitization
    (really? maybe true but you sure made it quite a bit easier for wall street to do it, Oh I forgot the real owners of Mers is Wall street, Very Very interesting inspector!!
    6) Lenders cannot “hide” behind MERS
    ( really my loan on mers does not show my lender, instead, is states lender choose not to list and call my servicer. Like they know, Ive asked them 5 times since June and they have told me 5 different lenders SO FAR.
    7) MERS fully complies with recording statutes
    ( really? then why does my county not have a record of my current lender?)

    I feel like beating the piss out of this arogant piece of shit. Im furious to see this blatant attept to completly lie and hope that the uneducated in real estate will just take his word for it, PLEASE UNDERSTAND EVERYTHING HE SAID IS ALL LIES.

  13. Bill McConnell says:

    While NOT a lawyer, I am not equipped to refute this message.
    As a victim of mortgage fraud at the hand of David Stern’s office and a wall street bank I can say that the MERS process may be questionable as to proper legal format and CAN be challenged with success in the stater of Florida. Can anyone explain to me why it is not unusual for judges to find Mers practices enough to often dismiss their case in favor of homeowners in many states?

  14. Lit Gant says:

    Ok, I hit return and it posted. I was not finished. There are hundreds of thousands of cases where MERS has apparently given power of attorney to at least 10,000 fake vice presidents. But, none of these fake-vps have ever had possession of these POAs. And to make matters worse, servicers like Ocwen and EMC have robo signers scribblining the signatures of these claiming to have the POA. And MERS knows about it. MERS has been shown the proof that if Scott Anderson had a POA as a vice president, how can he then give at lear 100 more notaries and employees of Ocwen an additional POA to sign his right to sign as a POA? MERS knows this is robo-poa-fraud. Additionally, MERS memebrship agreement at Rule 2 5 (a) gives members only a right to name them as nominee mortgagee in the land records. The lender who names MERS MUST be a member and have edocument and eregistration rights. Here is the FRAUD. Millions of mortgages WERE NOT registered on MERS because the lenders were not members. They were using a standard mortgage form that had MERS as nominee but no agency ever existed. You can check the MERS registry and you may find you are not listed and your lender is not listed. But MERS authorizes through these fake “vise presidents” assignments of mortgage which includes the note, and they have no legal right to do so. These assignments become clouds on the title. But, more importantly, plaintiffs rely on these fake assignments to convince a judge they have standing. And millions of foreclosures took place with these fake fraudulent MERS assignments. MERS knows about this because I brought it to their attention months ago. They now claim a lender does not have to be a paying member for them to be named nominee. This is fraud itself. MERS by the POAs of these fake vice presidents knows their whole system is fake and used for fraudulent purposes. Now review Rule 1 Section 2 (a) (iii) where it says if note is lost, the member MUST TRANSFER THE MORTGAGE OUT OF MERS. Yet, MERS has issued millions of fake assignements by the names of these fake vise presidents used to give standing where in the complaint and pleadings the mortgage and note are said to be LOST. So, this CEO is a liar and MERS is a system of FRAUD. It is time to make this fraudulent business pay for every foreclosure where these fake assignments were used against the American people. MERS deserves to die after it pays its just debt to society. If America voters do not stand up in November and demand from the Republicans and the Democrats justice, then we deserve all this fraud. I say vote out every judge, vote against every candidate that refuses to stand by the American people against this foreclosure fraud. For all you who lost your homes already. Get a lawyer and file a suit to vacate the order of foreclosure and go get your house back for FREE!

  15. Tim Barker says:

    I love how he says “transparency” even after Mers supposedly started listing the lenders and not just servicers, my laon on thier system still says, lender choose not to list name and says to call servicer for more info, what a JOKE.

  16. Reggie in PHOENIX says:

    “SAVE MONEY.” ???? Save money for who? They have stolen millions of dollars of revenue that our counties could have used in order to “save money” for THEM! This is wrong and these bastards should hang. What is ticking me off most is that this whole Fraud businesss is getting swept under the rug. They committed fraud and they know it. The judges are slapping them on the hands, the gov. is asking for 30 day ceases on foreclosures………..for what? So they can get their paperwork in order? This isn’t about mistakes made in the processs. This is about intentional by passing of laws and lying on documents in order to steal homes from innocent hard working people and familes with babies. What the heck is wrong with everyone? Don’t use the same terminology that they are trying to get you to believe and use. It is the same thing. It is a slide of the hand. Remember when we went into Iraq? What was the reason they told us? WEAPONS OF MASS DESTRUCTION. Well do you hear of anyone questioning that anymore? NO! Because they shifted the subject as always. No one is asking the question, “Where are the weapons of Mass Destruction? Isn’t that the reason we went in in the first place.” You see, they make the kool aid and you Americans Drink it!!!!! Keep calling this fraud and we need to insist that sanctions be brought against them ALL who committed it or aided in it! They are working hard at shifting this over to simple neglect of paperwork!!!!! Don’t go there!!!! Demand something America! Demand justice be heard!

  17. leapfrog says:

    For everyone who has not seen this article:

    http://blog.chinkinthearmor.net/wordpress/?p=420

    Enjoy! One of my favorite!

  18. Lit Gant says:

    MERS has commited NO FRAUD? Shame public statments like this are not perjury.

Trackbacks
Check out what others are saying...
  1. [...] Statement by CEO of Mortgage Electronic Registration Systems (MERS) “The MERS System is not fraudu… [...]



Leave a Reply