Matt Tiabbi on MERS | An Extremely Long Metaphor to Explain Mortgage Chaos

An Extremely Long Metaphor to Explain Mortgage Chaos

Happy New Year, America…

Have multiple relatives en route to my home this morning, but wanted to post a few thoughts on an interesting story that came out this week before I disappear into a weekend of overeating and meaningless NFL games.

The piece, which came out Thursday, is the Washington Post’s feature on MERS, the electronic mortgage registration company that is at the center of the foreclosure/mortgage bubble mess. MERS is the brainchild of the mortgage-lending industry and is essentially an effort at systematically evading taxes (more on that in a moment) and hiding information from homeowners in ways that enabled the Countrywides of the world to defraud investors and avoid legal consequences for same.

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.

Check out the rest here…


5 Responses to “Matt Tiabbi on MERS | An Extremely Long Metaphor to Explain Mortgage Chaos”
  1. This is so disgusting…for shit like this to happen in America. Racketeers are never to big to fail…someone bigger comes along and it’s over. I agree…this year will tell it all…it has gone far enough. We the People need to show them what ‘standing is’. The game is over…fraud was done as planned…nothing has been done so it will be up to the people to settle it. Whatever it needs, whatever it takes, no one can say there were no warnings. Power of the people united is the only way to solve this crime done to our country. Not one person has stepped forward to stop this fraud…to busy in bed with each other..and to think OB …while on his 1000 vacation… leaks word that he may have a JP Morgan exec. appointed to a high post in government. Only proves who runs who…So now let’s see what this year will bring…we know it can’t get any worse…demand..don’t ask…for indictments.. This is the ‘change’ we want…and want now….will not settle for less… indictments to the top dogs of fraud…then release all prisoners…. most are in for crimes way less than what has been pulled with multi crimes with banksters and the government shielding them with their famous protection…while spitting on the people. And yes…that includes CONgress. All knew and know what the hell is going on….We the People have out smarted everyone of them….so now it is our turn to settle this mortgage mess that was to be such a great plan to suck this country down. Sorry banksters… or should I say fraudsters…your plan failed….you are on the end of your spree of greed.

  2. l vent says:

    MERS is only a part of the fraud. MERS is the cover up for all of the fraud at origination. MERS is a distraction from the truth about FRAUDCLOSUREGATE. The FBI knows about all of the origination fraud so why are we using MERS as a reason why the banksters cannot foreclose? MERS helped the banksters cover up the fraud at origination and allowed the banksters and Wall Street to continue to make money off of our names and paid off deeds at a more rapid rate. I think once the TRUTH comes out about all of the origination fraud the banks will be through fraudclosing on homeowners. Why don’t the banks just admit that they could not buy and sell off of our names and deeds if they were not paid off? They needed paid for collateral and a sucker’s signature to commit their crimes. If they attached a mortgage or note to that paid off deed or name they could not have used us as collateral in their crimes. I think it is time the truth came out and the banksters and the Government called it even with the homeowner’s They made trillion’s of dollars and never securitized the mortgages or notes to the recorded paid off deeds so they cannot foreclose.The attempts to cover-up their crimes and all of the lies are costing everybody way to much time and money. It is time for the truth about fraudclosuregate. We The People will have no false debt slavery in America. Our homes are paid for thank you very much and the banksters and wall street made trillions. I say it is time to call a truce.

  3. DanJS says:

    To continue with the metaphor, the culprits didn’t “total” the truck(s)… they “stripped” them all for “redistribution” by SEC approved salespeople, and “packaged the paper” as negotiable “bills of sale.” They sold these “secondary market parts” in thousands of “gift wrappers” with exotic, “financial-sounding” names.

    Finally, these “brokers” who claim to be “financial fiduciaries” name the “bill(s) of sale” a flashy, new name “derivatives” and sell the valueless paper “investments” as “quality parts” to pension plans and other institutional investors all over the world who should know better.

    Remember the last words of the attorneys and their compatriots who include “educators,” “political representatives,” “judges,” “prosecuting attorney general(s),” etc. as they “inked” the final “powers” for “beneficiaries” in the last document(s) in the fiduciary chain…. “Trust me! I know what I’m doing. Catch me if you can!”

  4. Eugene Villarreal says:

    No Respect for New Jersey. The Rodney Dangerfield Effect.
    With 94% of foreclosures Uncontested. That’s NINETY FOUR PER CENT !!!
    New Jerseyans need representation at the January 19th hearing in Trenton where Supreme Court Justice Rabner will ask six major banks why (whhhyyyyyyyy ? ) he should not halt foreclosures in New Jersey. If 94% is not a big enough number, then what is ? Standing on the sidelines for so long and enacting statues likes allowing electronic filing of foreclosure cases and electronic notary signatures and now asking why ? Even President Obama was FORCED to veto the Notarization Act HR3808. It doesn’t take a country bumpkin picking tomatoes in the Garden State to figure this out. It’s one for the banks.This Dream Team ( Judge(s), Banks, Foreclosure Mills ) that is meeting on the 19th is responsible for 94% of the damage they have done on the American dream of New Jerseyans. The Atlantic County Judge is one of the very few in New Jersey are the exception.

  5. J Glenn Lowe says:

    When Banksters break the rule of law to steal the American Dream and the politicians take bribes to look the other way while your country burns to the ground. It means that laws can’t protect you anymore…Time to get a rope. – Die Banker Die by J Glenn Lowe – A Tribute to Wall Street Banksters and Fraudgate

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