White Paper | The Case Against Allowing Mortgage Electronic Registration Systems, Inc. (MERS) to Initiate Foreclosure Proceedings

“MERS is currently a plaintiff in as many as forty percent of pending foreclosure actions in some locales. This Note argues that foreclosure actions brought in MERS’s name, without joining the real party in interest, are unlawful. Furthermore, this Note reveals how granting standing to MERS in foreclosure actions threatens to undermine the protections for homeowners that foreclosure law has traditionally provided, and violates important property law doctrines that ensure the proper functioning of the recording system and minimize clouds on title.”

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The Case Against Allowing Mortgage Electronic Registration Systems, Inc. (MERS) to Initiate Foreclosure Proceedings

Nolan Robinson
Benjamin N. Cardozo School of Law

Cardozo Law Review, Vol. 32, No. 4, p. 101, 2011
Abstract:
Few American homeowners know much about the small, Virginia-based company that has revolutionized the mortgage industry over the past fifteen years. Yet, Mortgage Electronic Registration Systems, Inc. (MERS) is the named mortgagee on nearly two-thirds of all newly originated residential mortgages in the United States. Industry leaders – including Freddy Mac, Ginnie Mae, and a host of private lenders – created MERS in the mid-1990s to help facilitate a burgeoning market in mortgage-backed securities.

At the time MERS was created, a robust and lightly regulated secondary market for mortgage-backed securities seemed like a good idea. The recent subprime mortgage crisis, which has impacted millions of American homeowners and played a key role in a global recession, has done much to challenge that presumption. One unfortunate byproduct of the subprime mortgage crisis has been a dramatic increase in the number of American homeowners facing foreclosure. For many of these homeowners, the MERS system may compound their hardships by effectively masking the identity of the owner of their loans. One of the benefits of MERS membership, according to MERS, is the legal right to foreclose on a defaulting homeowner in MERS’s name rather than in the name of the entity who actually owns the mortgage. This can mean that homeowners have no way of ascertaining the identity of the party with whom they can negotiate their loans.

Several state courts have considered challenges to MERS’s right to initiate foreclosure actions in its own name. MERS claims to have the legal authority to initiate foreclosure proceedings throughout the United States, but not every court has agreed. Some jurisdictions have expressly upheld MERS’s right to foreclose, while some have questioned or limited MERS’s foreclosure rights. Still other courts have reserved judgment, expressing frustration and confusion regarding MERS’s role in an increasing number of foreclosure and bankruptcy proceedings, and the ostensible connection between MERS and the subprime mortgage crisis.

MERS is currently a plaintiff in as many as forty percent of pending foreclosure actions in some locales. This Note argues that foreclosure actions brought in MERS’s name, without joining the real party in interest, are unlawful. Furthermore, this Note reveals how granting standing to MERS in foreclosure actions threatens to undermine the protections for homeowners that foreclosure law has traditionally provided, and violates important property law doctrines that ensure the proper functioning of the recording system and minimize clouds on title.

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4closureFraud.org

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The Case Against Allowing Mortgage Electronic Registration Systems, Inc. (MERS) to Initiate Foreclosure Proceedings

Comments
12 Responses to “White Paper | The Case Against Allowing Mortgage Electronic Registration Systems, Inc. (MERS) to Initiate Foreclosure Proceedings”
  1. Bust them! says:

    MERS = Money laundering

  2. l vent says:

    MERS IS NO MORE THAN A FASCIST TYRANNICAL, U.N./NEW WORLD ORDER TRICK. MERS IS JUST ANOTHER NEW WORLD ORDER SCAM AND A FRAUD. WE THE PEOPLE OF THE UNITED STATES OWE NO ALLEGIANCE AND NO MONEY TO THE U.N./NEW WORLD ORDER. THESE MORTGAGE LOANS NEVER EXISTED._ RESCIND THE FRAUDULENT MORTGAGE LOANS_. WE THE PEOPLE GOT SCAMMED IN THIS GIANT PONZI SCHEME HEIST. THESE MORTGAGE LOANS WERE NO MORE THAN A GIANT DECEPTION, A GRAND ILLUSION. THE PROOF IS IN THE ORIGINATION FRAUD.

    • Bust them! says:

      Study the scam at NBank of commerce Georgia. Shut down in 2008. What happened to it is a model of what happened nation wide.
      The funds from the fraudulent mortgages apparently were transferred offshore.
      Apparently the principles, other then the bank insider, were never discovered or at least prosecuted.
      They apparently have been ‘out there’ for a long time, maybe since 1995 or so. They appear to have stolen the US economy and transferred into the personal offshore secret accounts This is conspiracy and racketeering, and on going cover up. and there is NO STATUTE OF LIMITATIONS.from what I have been lead to believe, if this is as true as it seems..

      • l vent says:

        These criminals that devised this scam and the criminals that perped it truly are the scum of the earth. No doubt the spawns of satan. I was reading some sections of the PATRIOT ACT, the entire ACT is very lengthy and it looks to be about a whole hell of alot more than protecting our National Security. It looks like there is a whole lot of UNHOLY, UNCONSTITUTIONAL ACTS OF TREASON being made legal for CERTAIN FINANCIAL TERRORISTS NAMELY THE SAME ONES THAT ROBBED AMERICA BLIND. It looked to me like there are some SPECIAL provisions in there that does allow the BANKSTERS to squirrel away money in offshore bankster accounts if they just fill out some forms. This whole evil conspiracy has been in the works from what I understand since the assassination of J.F.K. This evil plan is A/K/A AGENDA 21 (google it). I truly despise all of these NWO bastards. Just about every American President since J.F.K. and every REPUBLICON/DEMORAT Congress member has contributed to where we all are at today by committing acts of treason against AMERICA and the American People. They have allowed this financial HOLOCAUST to come to fruition and it was well planned STRATEGIC NAZI CLASS WARFARE. Now what we have here is a hidden foreign interest the, NWO, that has hijacked America and they are out for no less than our National Sovereignty. They want to BANKRUPT AMERICA and obliterate all of our Constitutional Rights so that we have no means of protection so they can complete overtake AMERICA with their diabolical fascist tyranny of debt creation A/K/A THE WORLD BANK, THE IMF, THE FEDERAL RESERVE/MULTINATIONAL BANKSTERS/MULTINATIONAL CORPS/WALL STREET A/K/A THE NEW WORLD ORDER. .National Sovereignty will prevail.

  3. Lit Gant says:

    MERS enjoys governmental immunity. It was started by big government agencies and they have the protection of the justice department as well as the department of the treasury. In this mix of foxes there is also the Federal Reserve who could care less of this ponzi scheme.

    The problem here is that although MERS is named as nominee on many millions of mortgages, this became standard language on mortgage forms. But the problem here is, for many millions there NEVER was an agency contract or agreement between the original lenders and MERS. And, in these same millions of mortgages, the lender never was a member of MERS. For the nominee agency to be valid the lender and MERS would have to be in a membership agreement as well as some other agency contract or agreement. MERS has NEVER been made to produce the membership agreement authorized by the lender. But, MERS has now apparently learned from DOCX and LPS how to produce fraudulent membership agreements and have them in their electronic files. A check of the MERS home mortgage files for your mortgage may reveal it never was recorded with them. When I contact MERS to check on my own, it was not listed. They asked me to provide all the information and they would add it and or “correct” their files. I said “no way Jose.” If you do not have it I am not party to fraud so they can then make the file. But many well-thinking people will contact MERS and tell them their mortgage is missing and then ask them to correct their files and send them the mortgage information. Bingo, MERS now has all the necessary information in their electronic system to make fraudulent assignments and affidavits of lenders and appoint itself as the plaintiff as nominee for the lender and other parties claimed to he a due course holder. MERS needs to be killed. It is a rat with scurvey and carries the plague. All we need is the right Pied Pipper. For MERS to die it must be killed state by state by our AGs for acts of fraud in business and trade.

  4. l vent says:

    THE GSE’s FANNIE AND FREDDIE ARE WHO ARE THE ENTITY THAT IS FRAUDCLOSING IN THE NAME OF MERS. THEY ARE HIDING BEHIND THEIR CRIMINAL ATTORNEY NETWORKS. THE TREASONISTS, FANNIE/FREDDIE AND THE TREASONISTS IN CONGRESS ARE WHO WERE BEHIND THE WHOLE PONZI SCHEME HEIST. THE ORIGINATION FRAUD AND THE FRAUDULENT INDUCEMENT SHOULD CA– USE LOAN RECISSIONS NATIONWIDE. MERS OR NOT, THESE LOANS NEVER EXISTED. THEY NEEDED COLLATERAL FOR THE PONZI SCHEME WHICH WAS OUR PAID OFF HOMES. THE PROOF IS ON THE TITLE AND IN THE COUNTY PUBLIC LAND RECORDS. IN MY OPINION, MERS IS A MERE TRICK, A DISTRACTION FROM THE ORIGINATION FRAUD AND I DO NOT MEAN THE LIARS LOAN ASPECT, I MEAN THE FRAUDULENT INDUCEMENT OF THE MORTGAGES. THE FRAUD IN THE FRAUDCLOSURES IS ALSO A TRICK, A SCAM. FANNIE/FREDDIE AND THEIR PRETENDER LENDERS TRYING TO FRAUDCLOSE IN THE NAME OF MERS IS JUST ANOTHER SCAM. _NO ONE_ OWNS_ THESE LOANS_, THEY WERE FRAUDULENTLY INDUCED. THESE LOANS NEVER,EVER EXISTED. NONE OF THESE PRETENDER LENDERS INCLUDING FANNIE/FREDDIE EVER HAD ANY SKIN IN THIS GAME. _ THIS WAS A GAME OF PURE SPECULATION _BY THE GSE’s, FANNIE/FREDDIE, THE BANKSTERS/ WALL STREET CRIMINAL ENTERPRISE.. WE THE PEOPLE WERE ALL SCAMMED AND ROBBED IN THIS PONZI SCHEME HEIST. RESCIND OUR LOANS, WE THE PEOPLE WERE ALL MASSIVELY DECEIVED ABOUT OUR PARTICIPATION IN THIS PONZI SCHEME AND WE WERE DEFRAUDED AND ROBBED, AND IT WAS INTENTIONAL.. THIS ALSO INCLUDES, THE POLICEMANS AND FIREMANS PENSION FUNDS, THE 401K’s, CAR LOANS, STUDENT LOANS, VIRTUALLY 97% OF THE DEBT IN AMERICA IS UNSECURITIZED. THIS WAS HOW THEY COULD GAMBLE OFF OF THE BACKS OF THE HARD WORKING AMERICAN PEOPLE WHO JUST WANTED A BETTER LIFE FOR THEIR FAMILIES. WE WERE ALL SET UP TO FAIL AND — USED AS COLLATERAL FOR THEIR WILD SPECUALTION ON WALL STREET IN THEIR ONGOING PONZI SCHEME HEIST. THE BANKSTER/ WALL STREET CABAL ARE NO MORE THAN A BUNCH OF DIABOLICAL, FINANCIAL TERRORISTS RUNNING A GIANT CASINO AND WE THE PEOPLE ARE THEIR POKER CHIPS. RESCIND OUR LOANS.

    • Bust them! says:

      The State of Georgia is a non Judicial foreclosure state, AND the Georgia State Attorney General is NOT allowed to investigate mortgage fraud!
      The nexus of this racket would seem to emanate from Georgia.
      Lawyer rackets, providing protection to high level criminal rackets.TRILLIONS transferred offshore. RECO.
      We should fear that the good and decent agents of the Federal Govt who otherwise would pursue this are forced not to do so.
      Only if the people of the USA are made aware of it will we have the collective power to expose this atrocity.
      MERS is analogous to the Airliners that took down the Twin Towers. IMHO.

  5. Joe La Costa says:

    This is a great article standing is such an important part of lawsuits we forget to look
    A case decided by the supreme court last week regarding tax credits shows that bring up standing can blow the other side out of the water

  6. l vent says:

    I have a Foreclosure Summons being brought forth by FANNIE/FREDDIE’s criminal attorney network and then joining me as the defendant to FRAUDCLOSE IN THE NAME OF MERS WHO IS REPRESENTING A FAILED BANK. That failed bank is now HIDING IN AN UNSECURED, NOT FDIC INSURED TRUST CALLED NORTH STAR TRUST AND THAT TRUST IS HIDING BEHIND A CANADIAN BANK CALLED MARSHALL AND ILSLEY.
    WHAT A BUNCH OF LYING, THIEVING, CONIVING FRAUDSTERS. RESCIND MY LOAN, IT NEVER EXISTED. THAT IS WHY THE MORTGAGES WERE NEVER SECURITIZED, THEY NEED COLLATERAL FOR THEIR PONZI SCHEME AND WE DID NOT KNOW IT AT THE TIME, OUR PAID OFF HOMES WERE THE COLLATERAL. THEY MADE TRILLIONS OFF OF THE BACKS OF THE HARD WORKING AMERICAN PEOPLE.
    AGAIN I SAY, RESCIND OUR LOANS, NATIONWIDE. WE THE PEOPLE NEVER AGREED TO PARTICIPATE IN THEIR PONZI SCHEME HEIST. WE ALL GOT SCAMMED. PENSION FUNDS, 401 K’s, CAR LOANS, SCHOOL LOANS. I READ SOMEWHERE 97% OF THE DEBT IN AMERICA IS UNSECURED DEBT. IF THEY DON’T STOP FRAUDCLOSING AND FORCING US TO PAY FOR THEIR PONZI SCHEME HEIST, NO ONE SHOULD PAY ANY LOANS, SCREW THE NEW WORLD ORDER, THEY SCREWED ALL OF US. WE SHOULD ALL REVOLT ON THE HYPER-INFLATED TAX BILLS. WE THE PEOPLE ARE CONTINUALLY BEING FINANCIALLY ROBBED, RAPED AND PILLAGED BY THIS SAME NEW WORLD ORDER CABAL OF FINANCIAL TERRORISTS WHO ARE USING AMERICANS AS THIER PERPS, THEY ARE NOT AMERICAN INSTITUTIONS, THEY ARE FOREIGN OWNED MULTINATIONAL BANKSTER PROXIES AND FOREIGN OWNED MULTINATIONAL CORPORATIONS WHICH INCLUDES WALL STREET AND THE FEDERAL RESERVE BANKING SYSTEM OF FRAUD. AMERICA HAS BEEN COMPLETELY CORRUPTED AND HIJACKED BY THE NEW WORLD ORDER, THEY WANT TO BANKRUPT AMERICA AND THE WORLD AND OWN IT BY IMPOSING FALSELY CREATED DEBT BURDENS THAT THEY CREATED BY ROBBING ALL OF US BLIND. THAT IS A COMPLETE FASCIST TYRANNY. THEY ARE NAZIS. RESCIND OUR MORTGAGE LOANS, THEY NEVER EXISTED. FIND THAT ORIGINATION FRAUD AMERICA, THAT IS THE PROOF OF THE SCAM. WE GOT ROBBED BY A FOREIGN MULTINATIONAL INTEREST HIDING BEHIND THE SCENES THAT — USED TREASONIST AMERICANS TO TRY AND DESTROY AMERICA WITH DEBT THEY CREATED. THEY WANT US TO _OWN _NOTHING_ BUT_ DEBT_.

    • Herbert Lubitz says:

      We all know how they rob us Americans, We all know what the frauds are, but no one is coming forth with how to take down the system invented to destroy America. I challenge anyone to come forward with the answer to the question, of how to get something started to change this power hungry government, and abolish the FED. The problem was always the monetary system that was put in place of Gold backed securities. The Fed has been loaning out our paper debt and backing the debt with our signatures and the signatures of our children and their children as slave collateral. How much proof do the Americans need to start a revolution in this country and take back “WE THE PEOPLE” Control from these bums. Lawyers are the same slime that protects these bas***ds because they are too big to fail. Bullsheit!! Don’t people know that they are going to fail anyway? It’s part of the plan, to make it look like the debts of the People are the problem when in fact it’s the Banks, and the Fed who are going to crash the monetary system so they can get away with the fraud without getting prosecuted by the people. When they crash the system who will be the ones on top? All the wall street boys and the banks who are buying up the gold and silver and other precious metals and converting funny money that is worthless into material gains so they would survive while we the people starve and have no homes to live in, and they all have paid off their underground cities in mass areas of the world, that the people don’t have any idea they own, from our money we worked hard to survive on. Remember all they have to do is devise a plan to bankrupt everyone at once, and they will have total power to kill us off. Then they can come above ground, after the dust settles and we are all dead from starvation and disease they are getting ready to release.

      • l vent says:

        The power hungry Government is the SHADOW GOVERNMENT, THEY HAVE HIJACKED AMERICA BY USING TREASONISTS IN OUR OWN CONGRESS WHO ARE POSING AS AMERICANS WORKING FOR THE PEOPLE. THEY ARE NOT WORKING FOR THE PEOPLE. THE AMERICAN PEOPLE SHOULD NOT VOTE FOR ANY REPUBICONS OR DEMORATS IN THE 2012 ELECTION. THEY ARE ALL COMPLETELY CORRUPTED. TIME FOR THE AMERICAN PEOPLE TO LOOK BEYOND THE NUMBER THEY MADE US A CREDIT SCORE. SCREW THAT, THAT IS A NAZI TACTIC OF CONTROL OF THE MASSES. THE AMERICAN PEOPLE SHOULD REVOLT ON ALL OF THE DEBT. 97% OF THE DEBT IS UNSECURED. WE ALSO NEED A NATIONWIDE TAX REVOLT. WE ARE PAYING HYPER-INFLATED PROPERTY TAXES THAT ARE COMPLETELY UNJUSTIFIED. WE ARE PAYING PROPERTY TAXES ON HOMES THAT ARE WORTH LESS THAN HALF OF WHAT THEY WERE. THE TAX BILLS ARE BASED ON THE OLD HOME VALUES. THAT IS ALSO A CRIME. WE ARE BEING FORCED TO PAY HUGE TAX INCREASES ON EVERYTHING TO COVER UP FOR THE PONZI SCHEME HEIST. THE AMERICAN PEOPLE CAN AND SHOULD UNITE AND DEFAULT UNTIL WE GET A FAIR DEAL.. MORALS HAVE NOTHING TO DO WITH THIS. THE CRIMINALS HIDING BEHIND THE SCENES THAT — USED AMERICAN PERPS TO ROB US ARE WHO HAVE NO MORALS. CHECK OUT THE LATEST KEISER REPORT AND YOU WILL SEE WHAT I MEAN ABOUT WHO HAS_ NO_ MORALS. http://maxkeiser.com/

      • l vent says:

        ABC news reported on Nightline quite a while back that the elite were building underground bunkers. That is an open secret. The fact that the BANKSTER/ WALL STREET CABAL are also the Mexican Drug Cartels and they are laundering billions of dollars throught the NEW WORLD ORDER/ BIG BANKS/WALL STREET AND THE FEDERAL RESERVE is NOT well known to the public. The truth that 97% of the DEBT IS UNSECURITIZED is also not well known to the public. Now is NOT the time to for the American people to act like a defeated bunch of cowards THAT IS EXACTLY WHAT THEY WANT. .IT IS TIME FOR THE AMERICAN PEOPLE TO START THINKING AND ACTING OUTSIDE OF THE BOX . This FINANCIAL TERRORISM is EXACTLY WHAT THEY DID TO CREATE WEIMAR GERMANY and EXTERMINATE MILLIONS OF JEWS IN THE HOLOCAUST THEN THE NAZIS TURNED AROUND AND BLAMED THE JEWS FOR THEIR OWN SLAUGHTER BY CALLING THEM COWARDS. This is the same cabal of ELITE FINANCIAL TERRORISTS, who caused the widespread FINANCIAL DESTRUCTION IN AMERICA AND AROUND THE WORLD AND ARE BLAMING THE VICTIMS YET AGAIN. THEY WANT US TO FEEL POWERLESS AND DEFEATED. TIME TO LET CONgress know WE THE PEOPLE OF THE UNITED STATES OF AMERICA WANT OUT OF THE U.N./NEW WORLD ORDER. NATIONAL SOVEREIGNTY WILL PREVAIL UNDER THE PROTECTION OF THE U.S. CONSTITUTION AND THE U.S. BILL OF RIGHTS.. GOD BLESS AMERICA. WE THE PEOPLE WILL OVERCOME THIS U.N./NEW WORLD ORDER, FASCIST TYRANNY BY SPREADING THE TRUTH AND BEING INDIVISIBLE. THEY HATE AMERICA AND OUR U.S. CONSTITUTION. THAT IS BECA– USE OUR U.S. CONSTITUTION OVERULES THEM. IT IS NOW TIME FOR THE AMERICAN PEOPLE TO SEND THE REVIVED ROMAN EMPIRE, THE UN/NEW WORLD ORDER PACKING. THIS IS OUR COUNTRY. .THE U.N./NEW WORLD ORDER WANTS NO SOVERIEGN NATIONS, THEYWANT THE PEOPLE TO OWN NOTHING BUT THE DEBT THEY CREATE FROM THEIR CONSTANT EXTRACTION OF OUR WEALTH. THE U.S. CONSTITUTION PROTECTS US FROM THEIR TYRANNY.

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