False Statements – R.K. Arnold Mortgage Electronic Registration Systems

False Statements

R.K. Arnold
Mortgage Electronic Registration Systems

Action Date: November 18, 2010

As the many problems (frauds) are exposed regarding documents used by mortgage-backed trusts in foreclosures, some revelations stand out. Literally millions of foreclosures by mortgage-backed trusts hinge on a Mortgage Assignment signed by an officer of Mortgage Electronic Registration Systems (“MERS”) showing that the mortgage in question was transferred to the trust by MERS. The “MERS officer” who signs the Mortgage Assignment is actually most often an employee of a mortgage servicing company that is paid by the trust. MERS itself has only 50 employees and they are not involved in signing mortgage assignments to trusts. These servicing company employees sign as officers of MERS “as nominee for” a particular mortgage company or bank. They are not employees of the mortgage companies or employees of the original named lender, but their titles on the Mortgage Assignment belie this and typically read: “Linda Green, Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Brokers Conduit.” MERS president R.K. Arnold testified in Senate testimony earlier this week that there are over 20,000 MERS “certifying officers.” To become a MERS certifying officer, a mortgage servicing company employee need only complete an online form and pay $25.00. Because of the concealment of the actual employer on the Mortgage Assignments, it is easy enough for Courts, and homeowners, to believe that they are examining a document prepared by the lender that sold the mortgage to the trust, when, in fact, the signer was a servicing company clerk paid by the trust itself. The representative of the GRANTOR is, in truth, a paid employee of the GRANTEE. In hundreds of thousands of cases, the authority is, therefore, misrepresented. It is now also coming to light that in tens of thousands of cases, the individuals signing these forms did not even sign their own names. The documents were made to look official because other mortgage servicing company employees signed as witnesses and then all four “signatures” were notarized by yet another mortgage servicing company employee. The titles were false, the signatures were forged, the “witnessing” was a lie, as was the notarization. Despite all of these false statements, the BIGGEST LIE on these documents is that the trust acquired the mortgage on the date stated plainly on the Mortgage Assignment. In truth, no such transfers ever took place as represented by these MERS certifying officers (or their stand-in forgers). The date chosen almost always corresponds not to an actual transfer, but to the date roughly corresponding to the time the loan went into default. The Mortgage Assignment was prepared only to provide “proof” that the trust owned the mortgage. Until courts require Trusts to come forward with actual proof that they acquired the mortgages in question, specifying whom they paid and how much they paid for each such trust-owned mortgage, the actual owner of these mortgages will never be known. In response to the exposure of the widespread fraud in the securitization process, the American Bankers Association issued a statement essentially saying that Mortgage Assignments were unnecessary. Investors and regulators were told, however, that the trusts owned the mortgages and notes in each pool of mortgages and that valid Assignments of Mortgages had been obtained. Where the proof of ownership put forth by the trusts is a sworn statement by a MERS “certifying officer” who had no knowledge whatsoever of the transactions involved and did not even review documents related to the transactions, such proof of ownership should be deemed worthless by the Courts. Other litigants are not allowed to manufacture their own evidence and offer it as proof at trial – there should be no exception for mortgage-backed trusts. In particular, where the “MERS Certifying Officer” is actually an employee of the law firm hired to handle the foreclosure, such documents should be stricken and sanctioned. “MERS Certifying Officers” should be the next group required to testify before Congress. Here are the statistics for one Florida county, Palm Beach County, regarding the number of Mortgage Assignments filed by Mortgage Electronic Registration Systems: January, 2009: 1,164; February, 2009: February, 2009: 1,230; March, 2009: March, 2009: 1,113. An examination of just one day’s (March 31, 2009) filed Mortgage Assignments reveals that the signers of these Assignments are the very same mortgage servicing company employees who signed the “no-actual knowledge” Affidavits that triggered the national scrutiny: Jeffrey Stephan from Ally, Erica Johnson-Seck from IndyMac, Crystal Moore from Nationwide Title Clearing, Liquenda Allotey from Lender Processing Services, Denise Bailey from Litton Loan Services, Noriko Colston, Krystal Hall, and other well-known professional signers from the mortgage servicing industry. The most frequent signers from that particular day were two lawyers, associates in the law firm representing the trusts, who signed as Assistant Secretary for Mortgage Electronic Registration Systems.

Lynn Szymoniak



7 Responses to “False Statements – R.K. Arnold Mortgage Electronic Registration Systems”
  1. “Although increasing numbers of courts are continuing to reject improper and fraudulent foreclosures, the Congressional Foreclosure Panel examination of mortgage services and foreclosure practices did not include foreclosure lawyers.

    Lawyers are officers of the court; knowledge of applicable laws and civil procedure is not required from mortgage lenders.  In states that require judicial foreclosures, lawyers are the ones who file lawsuits to seize and sell property; and lawyers are responsible for filing and recording foreclosure property deeds.

    An investigation could prove helpful to sorting out whether improper and illegal foreclosure proceedings are linked to any self-dealing conduct disadvantaging lenders, investors, homeowners, and city governments. . .”
    *see: Request for Congressional Foreclosure Panel to Examine Foreclosure Lawyers

  2. RAMONA says:

    ITS LIKE ANY HELP YOU GET FROMTHE GOVERMENT ..YOU HAVE TO JUMP HOOPS BAckwards to get any of that help, even if you paid the taxes years and years ………

  3. Flex says:

    As time goes by and as we keep waiting for the Federal Government or any big shot out there to do something about the greatest deceit and Fraud in the world. Many institutions like FTC, SEC, Fannie Mae, Freddie Mac, etc, etc. Comes out with reports from now and then trying to cover up the whole mess.
    This is without any doubt, the FTC just put out a report called “MARS” Mortgage Assistance Relief Services, The Final Rule, that suppose to protect the consumers from scammers who charge up front fees for services.
    Although there are times that some individuals engaged in these practices, now everyone pays for the wrong doing of some people. What is worse in this report is that even Lawyers, Mortgage Brokers, Real Estate Brokers, or anyone for that matter who engages in helping consumers for any type of help related to their homes. People are more aware now and more educated in this subject and can make smart decisions.
    I see this as another way for the Big Banks paying millions of dollars through their lobbyist to institutions like the FTC as we know even the FBI is in partnership with MBA, Mortgage Bankers Association to cover up and prosecute the little guys who are really doing something to help the innocent home owners out of this ordeal.
    Since we have not seem lot of help from Government institutions like HUD, NACA, HAMP, or even the newest Consumer Protection Agency, recently announced that Elizabeth Warren supposed to be the front runner, and now she even has been substituted.
    The consumer does not have another place to get help, but the places the government and the banks are telling them to go to, because help is for FREE, and since they don’t have much money they don’t want to pay anyone, since they already had been brain washed by all the propaganda that any help for their homes is free.
    Professionals know very well that the majority of people do not know how to prepare the documents, understand what they are doing, and most of all, they do not know the guidelines and the calculation of their financial statement, which is key to get the banks or servicer to get their application approved.
    The majority of the laws written to protect the consumer is so vague and their goal is to discourage people who can afford to get help and do their paper work right to protect their homes and their families. The banks, the serivcers, and even the government don’t want the people to get educated in this matter with their homes, so they continue with their charade of taking people’s homes in foreclosure.
    They are looking at this as a business and masquerading the facts that by continuing with foreclosure, the economy will improve, because they don’t want to distract the consumers who can afford this new market.
    Even the President spoke in their behalf by sending his task force to investigate the matter and to find out that nothing was wrong with the way the banks are taking peoples homes, and foreclosure must continue for the sake of the economy.
    So the President puts the economy before the innocent people losing their homes in foreclosure like losing your wallet. At least when you lose your wallet, you report it and can replace most of your belongings. How can you replace a home and a family?
    If you would like to read the FTC report called MARS, please click the blue type link below. So, here are some of the paragraphs you might want to read…


    • RAMONA says:

      EVERYTHING HAS been set up to help the banks not the homeowners, our tax dollars have just been poured into all these programs but who held the money? the bank,of course, so who profited ? not the homeowners that for sure, they are still headed into the streets for the winter! isnt it something that Dodds said we needed more rentals. ALL this is to PROTECT the banks, well? what about the american people who pay the taxes that you gave to the banks to begin with and then didnt even help them?

  4. bert says:


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