When desktop scanners became available in the 1990’s mortgage lenders enthusiastically embraced the new technology. It is obvious they rendered their paper to disc. The financial advantages for having done so were also obvious; storing, cataloguing and retrieving reams of paperwork was seen as a burden of the past.
At first, it was probably an innocent move to streamline profit as it was also designed to meet the demands of the market. MERS mission statement sums it up nicely: “Process Loans Not Paperwork”.
The mischief is likely the result that the paper trail had become redundant and was deemed worthy of sacrifice to the Gods of Fire, Dumpster and Shredder.
A loan has two parts: one is administrative as it pertains to terms, conditions, listing of payments and who is designated to collect. It is called the lien. The other part is more important, and, without it, the lien is essentially worthless. It is called the note.
If someone from the bank came to repossess your vehicle they would bring the receipt, or pink slip. If they didn’t have the pink slip it is unlikely you would give them your vehicle.
The same may be said of the note for your house; think of the note as the pink slip. Without the note the bank is in no position to reclaim your house.
I have personally destroyed hundreds, possibly thousands of notes and the business my family ran had essentially two employees. We used to scan mortgage papers and put them on disc. Once the disc had captured the mortgage (both parts, the lien and the note), we destroyed the paperwork.
That’s right, we destroyed it; all of it. We never preserved the notes as separate from the rest of the paperwork; it seemed unnecessary to do so and the people we worked for never wanted the paper returned.
The claims of the bank went into the dumpster, along with the pink slips years ago.
@ Slappington – if you worked or did contract work for a lending or lender you need to come forth with your statements as to the disposition of these papers, especially where it concerns the note. Who knows? YOU could earn millions like Lynn S. as a top whistleblower. People with knowledge of these acts need to start coming forward.
slappington
August 7, 2012 at 2:38 PM
Thank you BobbiSwann, I am working on doing precisely that.
When desktop scanners became available in the 1990’s mortgage lenders enthusiastically embraced the new technology. It is obvious they rendered their paper to disc. The financial advantages for having done so were also obvious; storing, cataloguing and retrieving reams of paperwork was seen as a burden of the past.
At first, it was probably an innocent move to streamline profit as it was also designed to meet the demands of the market. MERS mission statement sums it up nicely: “Process Loans Not Paperwork”.
The mischief is likely the result that the paper trail had become redundant and was deemed worthy of sacrifice to the Gods of Fire, Dumpster and Shredder.
A loan has two parts: one is administrative as it pertains to terms, conditions, listing of payments and who is designated to collect. It is called the lien. The other part is more important, and, without it, the lien is essentially worthless. It is called the note.
If someone from the bank came to repossess your vehicle they would bring the receipt, or pink slip. If they didn’t have the pink slip it is unlikely you would give them your vehicle.
The same may be said of the note for your house; think of the note as the pink slip. Without the note the bank is in no position to reclaim your house.
I have personally destroyed hundreds, possibly thousands of notes and the business my family ran had essentially two employees. We used to scan mortgage papers and put them on disc. Once the disc had captured the mortgage (both parts, the lien and the note), we destroyed the paperwork.
That’s right, we destroyed it; all of it. We never preserved the notes as separate from the rest of the paperwork; it seemed unnecessary to do so and the people we worked for never wanted the paper returned.
The claims of the bank went into the dumpster, along with the pink slips years ago.
@ Slappington – if you worked or did contract work for a lending or lender you need to come forth with your statements as to the disposition of these papers, especially where it concerns the note. Who knows? YOU could earn millions like Lynn S. as a top whistleblower. People with knowledge of these acts need to start coming forward.
Thank you BobbiSwann, I am working on doing precisely that.