JPMorgan exits electronic mortgage tracking system
NEW YORK – JPMorgan Chase’s CEO says the bank has stopped using the electronic mortgage tracking system used by major financial institutions.
Lawyers have argued in court proceedings that the system is unable to accurately prove ownership of mortgages.
JPMorgan Chase & Co. and other banks have suspended some foreclosures following allegations of paperwork problems in thousands of cases.
JPMorgan’s CEO, Jamie Dimon, made the announcement in a conference call Wednesday to discuss the bank’s quarterly earnings.
Not sure of the ramifications on this but it is going to be bigger than anything we have ever seen…
Nobody has brought up the distinct possibility that the loan servicers may well have bundled and sold each of these loans MORE THAN ONCE to differernt investors via the securitization process. THIS COULD BE THE REAL REASON THAT THERE IS NO DOCUMENTATION / PAPER TRAIL. The non-existent documentation and accounting is entirely consistent with this scenario. This means that the entire plan was a true Ponzi scheme in the worst sense. In other words, rather than selling the loan once to investors, as we have all naively been assuming, there is no reason to believe that they did not double-dip or quintuple-dip and sell the exact same loan to completely new buyers. THIS IS A LEVEL OF FRAUD THAT THE AMERICAN PUBLIC HAS NOT YET CONTEMPLATED.
According to diana Olick of CNBC, Chase stopped using MERS in 2008.
Do you all know what this means? According to the MERS membership rules, any loan that is transferred from a MERS member to a non-MERS member but be assigned ASAP. Therefore, all those foreclosures with Barbara Hindman as Vice Presidnet of MERS after 2008, are fabrications. Barbara Hindman did not have authority after 2008 to sign as a MERS certifying officer because Chase was no longer a member.
It is no mystery who created/formed MERS, which was not the brain child of some “start up” that pitched an “idea” to investors, where actions/consequences would be held accountable. It is a Frankenstine constructed, fed and fueled by the wizards of Wall Street with the wink, wink, nod, nod of elected officials in DC, such as
“We should roll the dice” Frank in MA, Coumo “The HUD” in NY, and the now exiting to the Irish Isles, Dodd in CT!
The very RICH, Very Progressive (with your money that is) Mr. Diamond, is grand standing about not using MERS, joining his good friends over at Fannie & Freddie, going forward.
One question what about all those existing mortgages that have a MIN NUMBER assigned to them, some before the fact, most after ( that would be about 95% of the mortgages) now parked at the FED & GSE. So they claim to STOP using them now… SO WHAT?
What happens to an average American homeowner that would like to move sell their home… oops they are screwed as well by the Founding Father’s of MERS and the complete disarray they have made of land title.
MERS, etal. must have some very impressive “algorithms” grinding the networks if they think this can be “cleared” up in a few weeks!
Tell you what Mr. Diamond and friends, how about NO AMERICAN make’s a mortgage payment until you wizards clear this “little technicality up”! Cause as this unfolds it’s becoming very clear to a growing number of people, who are making good, are sending payments into a void, where there is no accountability, no decreeable factual records.
Mr. Diamond, you and your buddies have painetd yourselves into a corner with the BLOOD, SWEAT & TEARS of the American people. We will never forget!
I really enjoy your blog. I am a Florida lawyer deep into the trenches defending borrowers against foreclosure actions.
What I would like to know is why are the major lenders continuing to use the foreclosure mills for their existing and new foreclosures? Today I reviewed two new foreclosure actions filed on behalf of major lenders. Who else but the regular Florida foreclosure mills… the same ones that are under investigation by the Florida AG. Seems to me if the lenders and government were truly bothered about the litigation abuses, they would discontinue using these foreclosure mills.
WHAT??!!! HUH????!!!! WHAT??!!! Did Chase just publicly announce that “there are issues with the system properly being able to prove the ownership of mortgages” Did they just give everyone their home for free? WTF??? What kind of back room shananigans are going on? Why would they make this public admission? It …may be a lot more than just Mr. Geitner with the check book again. I’m pretty scared to find out. I’m quite sure we “can’t handle the truth”
This announcement is the spear head of the total economic consequences of these fraudulent practices. The next foreseeable move will be for the other “Big 5” banks to follow suit. This means that they will be forced to re-create the entire collateral mortgage loan files of tens of thousands of borrowers! Anybody evidencing MERS on their Deed should seek counsel immediately and talk to the original title company about their errors and omissions policies…this is the only way to re-set the Nation’s economy.
Tens of Thousands !? MERS is stamped on 60 Million mortgage deeds ( including mine )
Mers is also on my mortgage. I am up to date on my mortgage, but please do help me to understand that my mortgage may be a problem. I mean if mers has no recourse, who does to foreclose on ones property. And who can actually foreclose on it.. So I as a homeowner, who pays monthly, when i go to sell, i am hearing this could be a problem. When the banks figure all this out, and people actually walk away with their homes, that are in foreclosure, well they better be giving the homes to those also who pay every month and send a letter saying oops we made a very big mistake and you no longer have to pay,, here is your title….otherwise i will see the bank in court, but not on a foreclosure,,, because i will sue the heck out of them…
Keep up the great work.
wow that is really awesome annoucement.
however the majority stockholder in MERS is JP Morgan Chase.
in other words
THEY OWN IT. so whether they use it or not they are responsible for it and all its problems and liabilities.
and lawsuits too.
Good. The only way to hurt the rich is to take their money. Dimon deserve it. He screwed millions of hard working middle class Americans out of their homes. I wish JPMorgan stocks would plummit just like AIG. or Wamu. And it will happen because the foreclouse process they announced yesterday, the 19.5 billion is actually worth 35% of todays dollar value. I have seen $ 1.300.000 homes sold for $ 400.000 forecloused by Chase. I have seen $ 800K
homes in 06 now sold for $ 230K. When this comes to daylight all S#$t will hit the fan.
[…] Posted by Foreclosure Fraud on October 13, 2010 · 1 Comment […]
Well, at last: MERS is naked. It is a fraudulent business bilking thousands of lenders out of filing fees, membership fees, and it is a complete system of consumer fraud. What makes this so unreal, is that judges who are supposed to know the law and interpret without prejudice are guilty of complicity. They refused to believe this system was fraudulent all because they won a couple suits and appeals from brain-dead judges. Now maybe the consumers can have courts of equity? And if any judge accepts any assignments or affidavits from MERS after this expose, he/she needs to be arrested, convicted, and then hung from the flag pole. We can all then really sing: God Bless America…. Thanks 4closurefraud.org for staying on top of this horrible chapter in property rights in America. Thanks also to the many lawyers defending against this fraud who stand on the edge of being disbarred by the Florida Bar Association for dare complaining the Bar is and has done NOTHING! Florida Bar, you should take down the Florida flag from you logo, buildings, and letterheads, and replace it with the corporate seal of MERS. Because you have done nothing, diddly squat, to stop the injustice in Florida courtrooms and by run-amuck foreclosure mill lawyers. Viva America, Viva The People, Viva Justice.
viva america, someone one should inform homeowners who pay,, but got a mers mortgage,, do i get a lawyer, and have them take a look at my mortgage. does one have the right to sue the mortgage company, because of the MERS logo on the front of my mortgage paperwork.. and if so contac me…who am i paying and where is my money going..