William Black | The Unanticipated Consequences of MERS

“MERS’ members, therefore, had overwhelming incentives to engage in foreclosure fraud. The loans they were seeking to foreclose on often lacked essential documentation and were induced by defrauding the borrower. They had no legal right to foreclose, but that result was unacceptable to the senior officers controlling the loan servicers. They insisted on results, and did not monitor compliance with the law. The result was tens of thousands of felonies – monthly – by some of the largest financial institutions in the world. Filing false affidavits became business as usual. No one senior in the Justice Department or administration appears to be seriously upset about this. These felonies were committed by, or at the direction of, MERS “officers” – and MERS does not appear to be seriously upset about fraudulently foreclosing on the homes of tens of thousands of Americans. I study fraud by elites, and even I am stunned by the frequency and nature of the frauds and felonies and the lack of prosecutions and the overall blasé attitude by CEOs to the fraud and felonies.”


The Unanticipated Consequences of MERS

One of the defining motifs of theoclassical economics textbooks is the provision of examples of the unintended consequences of government action. Those consequences are invariably negative. The narrative is the government intended to achieve some goal, e.g., help the poor, and ended up harming the poor. Four counter narratives virtually never appear in these tracts. Theoclassical economists rarely mention: 1. Any governmental program that succeeds in its aims 2. Any governmental program that has unanticipated, positive consequences 3. Any private action that has negative unanticipated consequences 4. Any private action that has negative, intended consequences

A fifth counter narrative sometimes appears in theoclassical accounts – governmental actions that are intended to be harmful by the private parties that corruptly convince public sector actors to aid the private parties at the expense of the public interest. The fifth example reflects poorly on both the public and private sector actors and suggests that the private sector is a source of corruption of the public sector – which fits poorly with theoclassical dogma.

This column focuses on MERS as an example of the first and third types of counter narrative. It will be the first in a series of columns about MERS.

Read more: http://www.benzinga.com/economics/11/03/906223/the-unanticipated-consequences-of-mers#ixzz1FwastKib



14 Responses to “William Black | The Unanticipated Consequences of MERS”
  1. l vent says:


  2. boots says:

    MERS, don’t care because they are not paying any legal fees if you sue them. it was the responsibilities of the loan servicer to pay the legal expenses when you include mers in your lawsuit.

  3. l vent says:

    I watched an interesting interview today on RT news with Author and Journalist David Degraw. He was speaking about how the criminal treasonists are still running around free in America such as Hank Paulson and Lloyd Blankfein, Jamie Dimond. Foreign owned banks such as JP Morgan Chase and BofA have gone unpunished as well. He said we are all at this point in history because of a 100 year plan by aristocrats to create this One World Dictatorship Government. We are all suffering because of a systematic world wide plan by the eliteist’s using Global Policies of the IMF and the FEDERAL RESERVE to destroy our sovereignty and create worldwide oppression and debt slavery for generations to come. They are he also said being aided and abetted by neo liberal policies that were indeed centrally planned and are being implemented to destroy the economies of the world. He also said that all of the wealth in America is shared among 400 people. 400 people in this country hold more wealth than 155 million Americans combined wealth. Hank Paulson alone is worth upwards of around 50 BILLION DOLLARS and that is only what he is claiming to be worth as he probably holds vastly more wealth in overseas bank accounts. He said the U.S Government should seize his assets as well as all of the others criminally involved and return the money to the American people from whom they stole it from. He is 100% right on about that.

    • Joyce says:

      I check 4ClosureFraud a couple of times a day and Ivent always has excellent comments. Helpful to the reader and really well documented and written. Thanks !

  4. Grady says:

    Here’s a question. Why are we not filing criminal complaints against the robo signers and those that manufactured fraudulent assignments and other documents? There are state and federal laws that have been broken? I propose we organize an effort to file criminal complaints on a broad scale. What do you all think?

  5. MAGGIE DA QUEEN says:

    Ya think i may be growing a brain:) Im sticking to my story hate or not hmmmm i saw something lol!!!!!

  6. Bust them! says:



  7. l vent says:

    This is not about MERS, It is about the ORIGINATION FRAUD and TREASON and the FRAUDULENT INDUCEMENT OF OUR MORTGAGES. Ask the FBI, they blew the whistle on the ORIGINATION FRAUD in 2004. MERS is a disraction and a cover-up for all of the fraud. Mr Black knows this. He wrote extensively on the fraud. Can someone tell the truth so we can finally get a NATIONWIDE MORATORIUM ON ALL FRAUDCLOSURES. This is becoming stale.

    • Bust them! says:


      MERS is/was a tool for the fraud, as best as can be seen. It enabled the thugs to take out many loans on any given property, conceal their fraud from the record, and transfer their ill gotten gains to offshore hidden accounts.
      Study the NBank of Commerce Georgia.. It was shut down in 2008 by the FEDS. It is a prototype for the mechanism.
      Apparently, most of the thugs involved were not caught, or at least not prosecuted..
      There is reason to believe this goes to the ‘top’.
      If one is objective, one would think the banks are victims of this massive infection, as except for the inside racketeers, it is unlikely that the bank heads would have known about it all.
      It seems it was loan officers in side the banks, colluding with loan originators in the officers of private and public entities.
      Loan officers colluded with brokers, Loan guarantee officer colluded with co-racketeers in the banks, etc.
      IMHO, it is deep and ugly.
      The only reason their aren’t serious prosecutions at the depth of this can only be organized crime at the deepest.levels.
      If you have tried to have a person prosecuted for ID THEFT, and the appearance of counterfeit mortgage fraud, and tried to have an investigation into this persons activities where you have 100% proof if ID Theft, and serious indicators of a very well concealed counterfeit mortgage fraud (racket), and cannot get anyone to investigate it, you know what is going on.

  8. David Kanz says:

    I am about to file an action against MERS and Bank of America wherein MERS “assigned” the deed to BOA and a non-judicial foreclosure and eviction then ensued with no proof of assignment of the p-note from the original lender, American Home Mortgage, to BOA.

    Damages will be determined as well….

    • Joyce says:

      If MERS, by their own admission, has no beneficial interest in the mortgage, what is your claim against them, other than the fact that they can not assign to another entity that which they do not have ? I’m interested to know what your focus is if you have the time to share a little more.

      We have a mortgage that originated with Aascent Mortgage and then went to Amtrust bank and then to Wells Fargo. It’s a MERS mortgage, and the house is in Florida where MERS isn’t allowed to initiate foreclosures. However, unlike our other foreclosure in Florida which is with GMAC, who filed the foreclosure after MERS fraudulently assigned it to them, MERS did not assign it to Wells Fargo. Instead Wells Fargo “created” an allonge to the note, alledging to assign the note from Aascent to Amtrust, and attached it to the complaint they filed in April 2010. The allonge was not dated, other than to include the date of the original note, was not notarized, and was not included with the original mortgage that was filed at the county recording office, despite the fact that it claimed to be an allonge to the original note. It was signed ‘J B’ by someone named Jennifer Banville stating to be an authorized agent by Power of attorney for Aascent Mortgage Corporation. That’s it. No assignment from Amtrust to Wells Fargo, just some lousy, forged up, piece of crap, useless Allonge.

      We have responded to everything that’s been filed in tthe case, but as of last August nothing has happened on the case. They must have put our file in the back of their files because they don’t want to deal with us.

      • David Kanz says:

        1. MERS may not act as a trustee or fiduciary for anyone in the state of GA, which is what the Security Deed actually requires it to be, thus rendering the Security Deed void from the beginning, and thus any promissory notes associated with the Security Deed become at best unsecured loans.

        2. MERS must only act, as a nominee, at the express written instruction of the Lender holding the Note.

        3. The Note in question was never assigned, sold or transferred to BOA and BOA was required to record the assignment of the Note by the original lender PRIOR to proceeding with its non judicial foreclosure.I have spoken with the President of Bank of America’s office about proving chain of title and a loud, whooshing silence has ensued.

        GA allows a suit for damages for wrongful foreclosure as a tort.

        The original note must be produced by the purported note along with any assignments. Those too were to be recorded in GA at the county level.

        Allonges are infamous across the country and any lawyer who would present to a court a separate piece of paper apart from the note has serious legal and ethical issues.

        A friend of mine faced the same situation in Indiana with Deutsche Bank — and the bank lost because it could produce no legitimate assignment but kept submitting allonges.

        I suppose it all depends on where one is and in what state however, the Uniform Commercial Code is pretty clear about legitimate assignments and each state has recording requirements, Florida included.

        What is interesting is these banks have been the beneficiaries of the recent “bailout” and so basically have been paid for the face value of the mortgages and any deficiencies—-and are now double dipping with foreclosure actions on homes that were paid for by the bailout.

        I would encourage you to stick to your guns and request a forensic inspection of any allonges filed and the same for the original wet signature p-note.

        In a parallel example, even lenders who have had student loan p notes assigned to them and cannot produce the original p-note will have no standing to bring a default action absent the original note — I worked for the Florida Dept. of Education in the documents scanning division and we kept original wet signature p-notes in a literal vault—and were chastised and threatened with termination if we left those p-notes out of the vault overnite because “they are money…”

        The fact your case has been “put on the back burner” is a good sign—but be diligent….the ramifications of this gargantuan break in the chain of title and gaps in the mortgage audit trail are far reaching—-global in nature….the largest investor in Fannie Mae.Freddie Mac is:

        The nation of China…..who also financed the “bailout.”

        The house of cards is about to collapse…but those who own the house of cards are very good at convincing “us” the “emperor has clothes…” when he does not.

        Hope this is helpful.


      • David Kanz says:

        The problem MERS has is it changes “hats” depending on the forum—it claims to have an interest as a beneficiary of the express trust agreement (Security Deed) and in the debt sometimes——and then claims it doesn;t and cannot on other occasions.

        The Nebraska court’s ruling reveals this explicitly and described such actions and positions by MERS’ attorneys as “schizophrenic…” Rightly so…..you cannot be a nominee and beneficiary/owner/holder at the same time…in the real world anyway.

        Do you have an attorney involved? Have your counter sued? This is complex litigation and I would advise obtaining legal counsel if you are able…otherwise you will be responsible for contesting this very apparent fraud on the court.

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