The Market Ticker – MERS Enters The Twilight Zone

Amusing over at NC:

Mr. Anderson said that he could not comment on the OCC investigation or actions but then went on to say that no administration would allow, nor would it allow a judge’s ruling, to threaten the legal standing of a MERS member to take a home. He pointed out that MERS has some relationship with 60% of the mortgages in the country worth in the trillions of dollars. In other words, in his opinion, regardless of the law or the findings of the OCC, MERS is too important because of the dollars associated with its operation to be allowed to be found to be acting illegally.

In short, this man, who from his position as legal counsel for the party under investigation has inside knowledge of the OCC investigation, is confident that the government will do all it can in its power, regardless of the evidence, to assure that MERS and its members are allowed to proceed as they wish because of the potential financial costs.

Yeah, well, that’s consistent with the record related to MERS.  However, that doesn’t seem to be disabusing the judiciary – they ran that argument in NY and the Judge there was having none of it, as has been noted:

MERS and its partners made the decision to create and operate under a business model that was designed in large part to avoid the requirements of the traditional mortgage recording process. This Court does not accept the argument that because MERS may be involved with 50% of all residential mortgages in the country, that is reason enough for this Court to turn a blind eye to the fact that this process does not comply with the law.

Raw arrogance by the financial industry is nothing new.  We’ve had two serial Treasury Secretaries who have shown amazing amounts of hubris and then of course there was Rubin, who was by many points of view even worse.

But there’s a problem here at this point: corporations can’t vote.

Yeah, I know, they buy big megaphones with their campaign donations and such.  I’ve gone over that before.  But at the end of the day, they don’t vote – only people vote.

The argument of “you must do what we want because we’re too intertwined/big/powerful to fail – or jail” works for a while.  But eventually, if the people get abused by it to a sufficient degree, it fails for one simple reason: The people are the ones who have to pay the taxes to keep the government running, and when you screw enough of them the tax base upon which the government rests is destroyed.

MERS doesn’t seem to understand this any more than does the rest of the financial industry, but irrespective of that fact it remains true.  Shadowy figures in the mist only work out so long as they remain shadowy figures in the mist.

But now MERS is under assault from all sides.  Homeowners on one and worse, county registrars who want their damn money – and who need the money. MERS is a juicy target – not itself, but on a puncture of the corporate veil.  If you can get through that, and it’s not impossible when you have a shell corporation, you go directly for the jugular – the largest banks in America.

This game isn’t over.

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