Foreclosure Daily News Update ⋅ December 14, 2021

 
 

 

 
 

Not all Forced-Sale Mortgage Foreclosures are Exempt from Avoidance as Fraudulent … – JD Supra

JD Supra

The United States Supreme Court held in BFP v. Resolution Trust, that properties sold at “force-sale” mortgage foreclosure sales properly …

 

 

 

 
 

Owner of Southridge Mall agrees to foreclosure: Report – TMJ4

TMJ4

The owner of southeastern Wisconsin’s largest mall, Southridge Mall, has filed agreements to finalize the foreclosure of the property, …

 

 

 

 
 

Worried your house might end up in foreclosure? $197 million in relief funds can help – Wichita, KS

Wichita, KS

As part of the federal American Rescue Plan Act, Arizonas eligible homeowners who have been impacted by COVID-19 can now gain access to $197 …

 

 

 

 
 

Local mortgage delinquency rate edges up in September – Winston-Salem Journal

Winston-Salem Journal

Both figures include houses in the foreclosure pipeline. For the Greensboro-High Point MSA, the 30-day delinquency rate was 4.5% in September.

Foreclosure-Prevention Scams Surface in MN – HOCMN – Minnesota Homeownership Center – Minnesota Homeownership Center

Senior Foreclosure Manager – Careers at Shellpoint Mortgage Servicing – Careers at Shellpoint Mortgage Servicing

Full Coverage

 

 

 

 
 

Mortgage Delinquency Rate Moves Closer To Pre-Pandemic Levels

National Mortgage Professional

Home equity has been a redeeming factor for many homeowners who were on the verge of foreclosure. Despite nearly one-in-two delinquent borrowers …

 

 

 

 
 

Mortgage Delinquency Declines Across the US in September to Approach Pre-Pandemic …

The Bakersfield Californian

Foreclosure Inventory Rate (the share of mortgages in some stage of the foreclosure process): 0.2%, down from 0.3% in September 2020.

 

 

 

 
 

Real Estate Investment Company at Center of ‘Moms 4 Housing’ Saga Hit with $3.5 Million …

NBC Bay Area

The financial penalty stems from how the large home-flipping company evicts tenants in homes it purchases at foreclosure sales …

 

 

 

 
 

Home Price Appreciation is a Double-Edged Sword for Homeowners Struggling to Make …

PR Newswire

Higher property taxes push foreclosures up in Virginia, … Going forward, property tax increases may exacerbate foreclosure rates in states where …

 

 

 

 
 

New York Supreme Court Casts Doubt on Viability of Claims That a Pledge Agreement …

Lexology

Although no court had ever enjoined a UCC foreclosure sale on the basis that the pledge was a clog on the equity of redemption, …

Expert Insights: Where Can I Find Foreclosure Properties? – RISMedia – RISMedia

Full Coverage

 

 

 

 
 

In the courts: | News, Sports, Jobs – The Review

In the courts: | News, Sports, Jobs – The Review

County Treasurer vs. Kelly McElwain, et al., foreclosure sought for alleged delinquent taxes for property on Sprucevale Road, East Liverpool. County …

 

 

 

 
 

Loan Officer Admits Participation in Large-Scale Mortgage Fraud Scheme – Department of Justice

Department of Justice

… in fact, the straw buyers had no means of paying the mortgages on the subject properties, many of which entered into foreclosure proceedings.

 

 

 

 
 

Nam Tai Property Provides Corporate Updates | Business Wire

Business Wire

Receives Notice That Deutsche Bank has Foreclosed on All Shares … The Foreclosure Notice provides that “[Greater Sail] no longer has any power …

 

 

 

 
 

News in brief – The Arkansas Democrat-Gazette

The Arkansas Democrat-Gazette

The development went into foreclosure because of a default on two construction loans totaling $7.3 million in 1988. It was sold in 1990 for $5.5 …

 

 

 

 
 

Commentary: Community Land Trust as a Way Forward on Affordability? | Davis Vanguard

Davis Vanguard

So two out of every 10 homeowners went through foreclosure and lost their … to rehabilitate a group of 16 vacant foreclosed single-family homes, …

Homes for sale in leflore county oklahoma – Hardiscount – Hardiscount

Foreclosed condos in cortland ohio – cokol-plast.ru

Full Coverage

 

 

 

 
 

Oregon Senate passes rental assistance safety nets | Rock Hill Herald

Rock Hill Herald

… homes during this crisis by launching mortgage and rental assistance programs and enacting foreclosure and eviction protections,” said Sen.

 

 

 

 
 

What mortgage lenders predict for 2022

National Mortgage News

Foreclosure forecast. Mortgage professionals generally expect more foreclosures in 2022. Half of survey respondents expect the pace in “some or all …

 

 

 

 
 

Oregon lawmakers pass rental assistance funding, extend eviction protections – KGW

KGW

… this crisis by launching mortgage and rental assistance programs and enacting foreclosure and eviction protections,” said Senator Kayse Jama, …

 

 

 

 
 

Eviction prevention, utility funds still have money available – ABC 36 News

WTVQ

Those who are behind on rent or facing foreclosure may be eligible for relief. The Team Kentucky Healthy at Home Eviction Relief Fund offers up to …

 

 

 

 
 

U.S. diversity push for lawyers, agents to tackle housing crisis – Thomson Reuters Foundation News

Thomson Reuters Foundation News

Activists and others celebrate the purchase of a home at foreclosure auction by a community land trust in April 2021 in Berkeley, California.

 

 

 

 
 

Biden Grants Disaster Assistance for Kentucky Tornado Survivors – DSNews

DS News

Providing immediate foreclosure relief in counties covered by the major disaster declaration: HUD’s automatic 90-day moratorium on foreclosures of …

 

 

 

 
 

School Board Challenges Status of $750,000 in State Funds for Howard School – YouTube

YouTube

Next: · A Foreclosure Auction Goes Wrong… · Christmas Coffee Shop Bookstore Ambience with Instrumental Jazz Christmas Music & Fireplace · ‘Tesla as the …

 

 

 

 
 

Non-Profit Bidders Successfully Purchase More Than 800 Mortgage Notes Through HUD …

MarketScreener

The goal of the sale was to sell mortgage notes that have gone through foreclosure or deeds-in-lieu of foreclosure to purchasers whose mission is …

 

 

 

 
 

Nam Tai Property Provides Corporate Updates | Benzinga

Benzinga

Receives Notice That Deutsche Bank has Foreclosed on All Shares Previously … Notice of Foreclosure on Shares Previously Held by Kaisa Affiliate.

 

 

 

 
 

Fitch Affirms Myrtle Creek Improv Dist, FL’s Special Assessment Bonds at ‘BBB+’; Outlook Stable

Fitch Ratings

Special assessments also consist of amounts received from any foreclosure proceeding for the enforcement of collection of the special assessments …

 

 

 

 
 

12 scams of Christmas: Beware of phony shipping information – YouTube

YouTube

Next: · A Foreclosure Auction Goes Wrong… · Opinions Are Abstractions in Our Minds | Awaken From Self-Talk · Best before dates: How supermarkets tamper …

 

 

 

 
 

No Deed, No Taxes, No Problem With These Dirt Bonds – Bloomberg Quint

Bloomberg Quint

The bonds are repaid by property taxes and special assessments, and investors’ ultimate security is foreclosure on the property.

Leon county tax deed auction – Talents Tokyo – Talents Tokyo

Full Coverage

 

 

 

 
 

EQCE134364 Original Notice for Publication – Wilmington Savings vs. Estate of Shirley A …

The Quad City Times

NOTICE THE PLAINTIFF HAS ELECTED FORECLOSURE WITHOUT REDEMPTION. THIS MEANS THAT THE SALE OF THE MORTGAGED PROPERTY WILL OCCUR PROMPTLY AFTER …

 

 

 

 
 

6 Expert Tips for Finding the Right Lawyer for Your Banking Dispute – Pulse Headlines

Pulse Headlines

Whether you need help with debt collection or foreclosure issues, many things can go wrong if you don’t have a good legal team behind your back.

 

 

 

 
 

Trust Deeds: Definition & Differences with Mortgages | The Edinburgh Reporter

The Edinburgh Reporter

Default Loans. Foreclosure procedures vary depending on the type of property transaction. Non-judicial foreclosure is the norm with trust deeds, but …

 

 

 

 
 

New York First In The Nation To Launch Federally Approved Homeowner Assistance Fund …

News Nation USA

… in their home… they’re thinking about what they can possibly do to stop this foreclosure from happening, and the loss of their beloved home.

 

 

 

 
 

Pawn sites, payday banking institutions find out business advancement – Adotas

Adotas

If you are experiencing room property foreclosure and ought to not being authorized to refinance home financing changes could be the best option …

 

 

 

 
 

WEB

 
 

Upcoming Online Foreclosure Auctions – Week of December 13, 2021 – Realauction.com

Realauction.com

The following is a list of upcoming online Foreclosure Auctions hosted by Realauction.com for the week of December 13, 2021.

 

 

 

 
 

A type of foreclosure proceeding used in some states that is – Practice Quiz

Practice Quiz

a legal foreclosure; a court-appointed foreclosure; a judicial foreclosure; a civil foreclosure. Your answer: -.

 

 

 

 
 

CLERICUS – Foreclosure Sale List – Sumter County Clerk of Courts

Sumter County Clerk of Courts

The following foreclosure sales are scheduled to be auctioned at 10:00AM at the Sumter County Courthouse, jury management room.

 

 

 

 
 

Homes for sale in bucyrus ohio – Salamanca Servicio Tecnico

Salamanca Servicio Tecnico

We provide nationwide foreclosure listings of pre foreclosures, foreclosed homes , short sales, bank owned homes and sheriff sales. 3 Beds.

 

 

 

 
 

ASSOCIATION OF FORECLOSURE DEFENSE ATTORNEYS | LinkedIn

LinkedIn

ASSOCIATION OF FORECLOSURE DEFENSE ATTORNEYS is a law practice company based out of 400 E RANDOLPH, CHICAGO, Illinois, United States.

 

 

 

 
 

sheriffsaleauctions.com

 

 

 

 
 

Stop Foreclosure!!!! – Fundraiser by Kristin Aimoe – GoFundMe

GoFundMe

Stop Foreclosure!!!! · $175 CAD raised of $20,000 goal ○ 4 donors · Donations (4) · Organizer · Comments.

 

 

 

 
 

Fundraiser by Alejandra Ball : Help My Mom avoid foreclosure – GoFundMe

GoFundMe

… I am writing and asking for your help with anything you can to help my … Alejandra Ball needs your support for Help My Mom avoid foreclosure.

 

 

 

 
 

5 Technologies That Can Help Mortgage Default Servicing Players Thrive in 2022 – Provana

Provana

While the talent crunch in the foreclosure space is quite evident, … With foreclosures currently witnessing a surge due to COVID mortgage …

 

 

 

 
 

state of texas county of palo pinto – Newspaper Ads

Newspaper Ads – Weatherford Democrat

Legals 147 NOTICE OF FORECLOSURE SALE THE…. NOTICE OF FORECLOSURE IS GIVEN Announcements classified ad of the Weatherford Democrat Retail ads.

 

 

 

 
 

Safe-Space Foreclosure (Podcast Episode 2017) – Full Cast & Crew – IMDb

IMDb

Safe-Space Foreclosure (Podcast Episode 2017) cast and crew credits, including actors, actresses, directors, writers and more.

 

 

 

 
 

The Foreclosure Moratorium is Over | Hayes Realty Real Estate Podcast – Audible.com

Audible.com

Tune in today to find out what are the next steps to take if you are in a forebearance program or still facing hardship now that the foreclosure .

 

 

 

 
 

Foreclosed properties brossard – Itasat Rastreamento Veicular

Itasat Rastreamento Veicular

foreclosed properties brossard Buy Broussard Louisiana foreclosed homes … Our Broussard foreclosure listings posted on this page will include …

 

 

 

 
 

AOSC11-44 Managed Mediation Program for Residential Mortgage Foreclosure Cases

Florida’s Supreme Court

Subscribe to receive Florida Supreme Court opinions. A message will be sent to your email account for the regular calendar releases each Thursday …

 

 

 

 
 

Skinny Sub-2 deal in pre foreclosure – BiggerPockets

BiggerPockets

I have a very skinny sub-2 – i would love some (constructive) feedback. I’m thinking the only exit strategies are long term lease/hold or sell on …

 

 

 

 
 

Foreclosure Homes and Properties in the US (1st nov – 15th nov) | Datarade

Datarade

Data source: Zillow Bank database of home foreclosure Foreclosure aggregators Property Group LLC Websites like Zillow often sell …

 

 

 

 

 

     
 

FRAUD STOPPERS Daily News Update ⋅ December 14, 2021

 
     
 

New Photo of Franklin Fraud Suspect Shows Unique Neck Tattoo – Williamson Source

Williamson Source

There is a cash reward of up to $1,000 available if you know who he is. Call Crime Stoppers if you recognize him. Crime Stoppers: (615) 794-4000 or …

 

 

 

 
 

Lawyers working for Wisconsin election officials at no cost to diffuse threats, voter fraud claims

CBS 58

“There’s still been no hard evidence of systemic election fraud,” co-chair Ben Ginsberg said. “It is Republicans who are making these charges, and …

 

 

 

 
 

NJ Amtrak Engineer Admits to Stealing, Reselling 114 Chainsaws in Fraud Scheme – NBC New York

NBC New York

A New Jersey man is facing up to 20 years in prison for taking hundreds of chainsaw parts meant for Amtrak projects and selling the pieces to buys …

 

 

 

 
 

Chauvin expected to plead guilty in Floyd civil rights case | Crime & Courts – WAOW

WAOW

Antigo Police continue to investigate disappearance of Kayla Berg. Updated Sep 21, 2021. Marathon Co. Crime Stoppers: Theft and credit card fraud.

 

 

 

 
 

Former NFL player sentenced to 3 years for COVID-19 fraud – KATC

KATC

A former NFL player has been sentenced to more than three years in prison for fraudulently obtaining over $1.2 million in COVID-19 relief funds.

 

 

 

 
 

Fraud charges – Birkdale – myPolice Queensland Police News

myPolice Queensland Police News

Detectives from the Crime and Intelligence Command’s Financial and Cyber Crime Group have charged a man after he allegedly defrauded an elderly …

 

 

 

 
 

Amid procedural errors, Vatican fraud trial sees more delay – KTVZ

KTVZ

VATICAN CITY (AP) — The Vatican’s big fraud and embezzlement trial has suffered another delay. The tribunal postponed any further decisions until …

 

 

 

 
 

Letter: Author fixated on fraud – Bronx Times

Bronx Times

How exactly are these two city departments committing fraud? Does the author have personal knowledge that there is absolutely no homeowner owning …

 

 

 

 

 

     
 

Mortgage Fraud Daily News Update ⋅ December 14, 2021

 

 

 

 
 

Loan officer admits taking part in widespread mortgage fraud scheme – nj.com

NJ.com

Isaac DePaula, 41, pleaded guilty to one count of bank fraud, nine years after first being charged and five years after being indicted, the U.S. …

Loan Officer Admits Participation in Large-Scale Mortgage Fraud Scheme – Mortgage Fraud Blog

First Mortgage Co. Founder Sentenced to 104 Months in Prison for Financial Institution Fraud (FIF) – Laws In Texas

Loan officer admits taking part in widespread mortgage fraud scheme – NewsBreak – NewsBreak

Full Coverage

 

 

 

 
 

Loan Officer Admits Participation in Large-Scale Mortgage Fraud Scheme – Department of Justice

Department of Justice

The defendants then submitted these fraudulent documents as part of mortgage loan applications to financial institutions. Relying on these fraudulent …

 

 

 

 
 

Attorney General James Again Warns Mortgage Servicers of Obligation to Assist …

New York State Attorney General

… who have worked on numerous OAG investigations of mortgage servicing and mortgage fraud under the supervision of Consumer Frauds & Protection …

 

 

 

 
 

New Jersey Man Sentenced to 12 Years in Prison for Promoting Tax Fraud Scheme | OPA …

Department of Justice

Deceived IRS Into Issuing More Than $4 Million in Fraudulent Refunds. A New Jersey mortgage underwriter was sentenced today to 12 years in prison …

 

 

 

 
 

Not all Forced-Sale Mortgage Foreclosures are Exempt from Avoidance as Fraudulent … – JD Supra

JD Supra

Resolution Trust, that properties sold at “force-sale” mortgage foreclosure … trustees or debtors in possession set aside fraudulent transfers.

 

 

 

 
 

Alleged mastermind of $38M health care fraud purchased these Florida properties – The Real Deal

The Real Deal

Armando Valdes paid millions for condos in Aventura, Pompano Beach and homes in Estero and Sebring · $10M mortgage fraud honed in on Oceana Bal Harbour …

 

 

 

 
 

How borrowers can detect a fraudulent lender – ​5 signs that a lender may be a fraud

The Economic Times

Nowadays, millions of Indians are downloading instant loan apps to make ends meet. Consequently, cybercriminals are devising newer ways to swindle …

 

 

 

 
 

Verdict on plea against freezing of assets reserved – Newspaper – DAWN.COM

Dawn

… their alleged involvement in a £60 million mortgage fraud in the UK. … It was alleged that Saghir dishonestly obtained mortgages secured on …

 

 

 

 
 

Mortgage Application Fraud Market May set New Growth story with – openPR.com

openPR.com

Press release – HTF Market Intelligence Consulting Pvt. Ltd. – Mortgage Application Fraud Market May set New Growth story with CoreLogic, …

 

 

 

 
 

An uptick in title fraud in Southwest Florida – Fox 4 News

Fox 4 News

A person will make a fraudulent deed and then try to sell it. … get an email notification anytime your deed, mortgage or other land is recorded.

 

 

 

 
 

Ex-NFL player Bellamy gets 3 years for COVID relief fraud | The Fresno Bee

The Fresno Bee

According to court records, Bellamy obtained a Paycheck Protection Program loan of $1.2 million for his company, Drip Entertainment LLC, using …

 

 

 

 
 

MLO Mentor: Red Flags Rule | firsttuesday Journal

First Tuesday Journal

In handling loan applications and credit reports, mortgage loan … of potential fraud, called red flags in mortgage applications and other …

 

 

 

 
 

A Philly business owner pleaded guilty to using nearly $1 million in PPP loans to buy a …

Philadelphia Inquirer

Devron Brown, 50, admitted that he used fraudulent tax documents to obtain … fraudulent payroll data and tax information to support a loan …

 

 

 

 
 

Court dismisses 11 of 20 fraud charges against former FCT Minister’s son – The Guardian Nigeria

The Guardian Nigeria

The Federal High Court Abuja has discharged and acquitted Shamsudeen Bala, son of former Minister of the Federal Capital Territory, Bala Mohammed, …

 

 

 

 
 

Ex-NFL player Bellamy gets 3 years for COVID relief fraud – Times Union

Times Union

According to court documents, Yashica Bain, 38, of Miramar, previously pleaded guilty to conspiracy to commit wire fraud. She obtained a PPP loan …

 

 

 

 
 

Moody’s assigns provisional ratings to prime RMBS issued by UWM Mortgage Trust 2021-INV5

Yahoo Finance

All the loans in the pool are originated by United Wholesale Mortgage, LLC (UWM – Ba3 long-term corporate family and Ba3 senior unsecured bond …

 

 

 

 
 

Ex-NFL WR Josh Bellamy sentenced to 3 years in prison for COVID relief fraud – KRMG

KRMG

Sentenced: Former NFL wide receiver Josh Bellamy was sentenced to 37 months in prison after he pleaded guilty to PPP loan fraud.

Former NFL participant sentenced to three years for PPP mortgage fraud – Best Investments Now – Best Investments Now

Full Coverage

 

 

 

 
 

FBI issues warning about holiday shopping scams – KNWA

KNWA

CLEVELAND (WJW)– The FBI is warning about scams this holiday shopping season. … If you believe you’re the victim of a scam, contact your bank or …

 

 

 

 
 

AARP Massachusetts Fraud Watch Network update for December 2021 – Leominster Champion

Leominster Champion

The AARP Fraud Watch Network has issued the following watchdog alerts. … If you’re relying on that account to pay your rent or mortgage, …

 

 

 

 
 

What Voter Fraud Really Looks Like – The Atlantic

The Atlantic

The idea that systemic fraud has subverted the democratic process demands a search … Have you read all your mortgage papers and all the closing …

 

 

 

 
 

Bath man sentenced to 10 years for fraud, money laundering – Portland Press Herald

The Portland Press Herald

U.S. District Judge D. Brock Hornby sentenced David Altenburg, 46, to 10 years in prison followed by 18 months of supervised release for wire fraud, …

 

 

 

 
 

3 residents of The Villages arrested after casting multiple votes in 2020 election – Orlando Sentinel

Orlando Sentinel

Three Villagers; Joan Halstead, Jay Ketcik and John Rider, were arrested over the last two weeks for voter fraud in the 2020 election.

 

 

 

 
 

Best Capital One Business Credit Cards Of December 2021 – Forbes

Forbes

… virtual numbers and $0 fraud liability, the Spark Miles also offers … Do you have a loan with another bank offering business credit cards?

 

 

 

 
 

J.P. Morgan Mortgage Trust 2019-8 — Moody’s upgrades 126 bonds from 15 RMBS transactions …

Yahoo Finance

Complete rating actions are as follows:Issuer: J.P. Morgan Mortgage Trust … of transaction parties, inadequate transaction governance and fraud.

 

 

 

 
 

Everbridge Investor Alert: Kaplan Fox Investigates Potential Securities Fraud At … – Benzinga

Benzinga

NEW YORK, Dec. 13, 2021 (GLOBE NEWSWIRE) — Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of …

 

 

 

 
 

Event featuring teachers crawling for cash prompts apology – FOX23 News

FOX23

In their apology, the Sioux Falls Stampede along with CU Mortgage Direct said they would be providing an additional $15,500 to area teachers. For …

 

 

 

 
 

UBS-Citigroup Commercial Mortgage Trust 2011-C1 — Moody’s affirms two, downgrades five …

Yahoo Finance

Performance that falls outside the given range can indicate that the collateral’s credit quality is stronger or weaker than Moody’s had previously …

Mortgage fraud is… – Coldwell Banker Pryor Realty | Facebook – Facebook

Full Coverage

 

 

 

 
 

Charlotte Theater Update + Christmas Bars + Missing Mail Fraud – Patch

Patch

Charlotte Theater Update + Christmas Bars + Missing Mail Fraud – Charlotte, NC – The quickest way to get caught up on the most important things …

   

Flag as irrelevant

 
 

Worcester Fraud Case Ends In 2-Year Federal Prison Sentence – Patch

Patch

WORCESTER, MA — A Worcester man who previously pleaded guilty to more than a dozen counts of wire fraud and failure to pay taxes was sentenced to …

 

 

 

 
 

AG Carr, Gov. Kemp Urge Georgians to Beware of Potential Scams Seeking Donations for …

Georgia Attorney General – Georgia.gov

Scam artists will prey on people’s generosity to commit financial or identity theft. Stay vigilant, be extremely cautious of unsolicited contacts and …

 

 

 

 
 

BoE data shows mortgage activity slow in third quarter

Mortgage Finance Gazette

Gross mortgage advances and the value of new mortgage commitments in Q3 2021 both fell on the quarter, statistics from the Bank of England (BoE) …

 

 

 

 
 

MPs and Lords back MSE campaign to include paid-for ads in Online Safety Bill to put an …

Money Saving Expert

The report warns that a lack of online regulation has left too many people vulnerable to abuse, fraud, violence and in some cases even loss of …

 

 

 

 
 

Holy cow! Colorado rancher bilked investors out of $5 million in cattle Ponzi scam – MarketWatch

MarketWatch

Prosecutors described it as a complex fraud that took thousands of hours of … a mom who took on student-loan debt in her daughter’s name, …

 

 

 

 
 

Erie man ‘sorry that I got myself into this,’ sentenced in $550K online love scam – GoErie.com

GoErie.com

Corder’s scheme:Bad date: Erie man, 67, pleads guilty to $550K fraud in online … including paying off his mortgage and buying a Harley-Davidson …

 

 

 

 
 

Ex-NFL player Bellamy gets 3 years for COVID relief fraud | National News | idahopress.com

Idaho Press

She admitted to paying Stote more than $28,000 as a kickback for his assistance in preparing and submitting the fraudulent loan application.

 

 

 

 
 

DocMagic’s Chief Compliance Officer Wins Top 40 Under 40 Most Influential Mortgage … – WAND TV

WAND TV

Gavin T. Ales wins annual award for his industry contributions with mortgage compliance. TORRANCE, Calif., Dec. 14, 2021 (SEND2PRESS NEWSWIRE) …

 

 

 

 
 

Beware of local councils promising new energy switch events – they may not be all they’re …

Money Saving Expert

Financial watchdog releases Christmas anti-fraud jingle… 9 December 2021 … Compares thousands of mortgages. Tool · Mortgage Calculator.

 

 

 

 
 

Canada Has The Biggest Gap Between Real Estate Prices and Incomes In The G7 – Better Dwelling

betterdwelling.com

Canada will also have the highest Mortgage Fraud and Money Laundering in … Canadian Mortgage Debt Hits 71% Of GDP, Growing 2x The Rate Of The …

 

 

 

 
 

Real Estate Lawyer Mitch Kossoff Pleads Guilty to $14.6 Million Fraud, Theft From Clients …

Law.com

Real estate attorney Mitchell Kossoff on Monday pleaded guilty to theft and fraud charges as part of a plea agreement with the Manhattan District …

 

 

 

 
 

Arrests bring three-state fraud spree to end in Tarboro | Crime | rockymounttelegram.com

Rocky Mount Telegram

On that day, Tarboro police Officer Alicia Velasco responded to Lowe’s at 111 River Oaks Drive to a report of a fraud being committed.

 

 

 

 
 

MPs demand ‘pernicious’ fraudulent ads are covered in online safety bill | This is Money

This is Money

The Government is under intense pressure to outlaw fraudulent paid-for adverts in forthcoming legislation after MPs backed the move in a new …

 

 

 

 
 

ZME’s investor is Zhangmen Education Inc. You have the opportunity to lead a securities …

Pennsylvania News Today

3 Instances When a Reverse Mortgage Can Be a Great Option … Education Inc. Announced an opportunity to lead a securities fraud class action …

 

 

 

 
 

BUSINESS LIVE: Unemployment falls to 4.2%; MPs urge scam crackdown | This is Money

This is Money

It said its Financial Policy Committee believes that its requirement for most mortgages to be limited to 4.5 times a borrower’s income, plus separate …

 

 

 

 
 

Winter Garden golf cart holiday parade rescheduled after man crashes vehicle near route …

Orlando Sentinel

Workers who stick with this company could get a mortgage-free home … Nik Patel sentenced to 25 years in far-reaching Orlando loan fraud.

 

 

 

 
 

Credit fraud on the rise: Vicenza black jersey in Veneto – D1SoftballNews.com

D1SoftballNews.com

The targeted loan continues to be the type of loan most involved in cases of fraud, with 43.1% of the total. However, cases involving credit cards …

 

 

 

 
 

Get healthy in St. Pete with free classes at “AARP FitLot Fitness Park” | West Central Florida

Spot On Florida

Ex-NFL Player Josh Bellamy Gets 3 Years for COVID Relief Fraud. 14:10 WFLA Tampa Bay … Former NFL player sentenced to 3 years for PPP loan fraud …

 

 

 

 
 

Chris Latvala rakes in $96K in November as he mulls 2022 or 2024 Pinellas County Commission bid

Spot On Florida

Former NFL player sentenced to 3 years for PPP loan fraud. 13:45 WFLA Politics Largo man faces 63-month prison sentence, longest yet, …

 

 

 

 
 

Gift card scams spiked in 2021. Here’s how to avoid getting duped | Personal Finance | oanow.com

Opelika Auburn News

Today’s Mortgage Rates Move Above 3.6% | December 9, 2021. Dec 9, 2021.

 

 

 

 
 

Scam warning: HSBC alerts customers to convincing email fraud – Daily Express

Daily Express

HSBC alerts customers to convincing email fraud … Martin Lewis urges savers to review their mortgage deals [EXPERT].

 

 

 

 
 

Canadian Real Estate Prices Don’t Always Rise Everywhere Forever: BMO – Better Dwelling

betterdwelling.com

Vast injections of mortgage credit reversed both slow periods. … Canada will also have the highest Mortgage Fraud and Money Laundering in the G7 …

 

 

 

 
 

WEB

 
 

You Are a Shitty Neighbor If You Report Mortgage Fraud! : r/REBubble – Reddit

Reddit

Half of the comments seem a little too supportive of mortgage fraud… almost … The comments are how to tell someone is committing occupancy fraud …

 

 

 

 
 

Find Mortgage Fraud Attorney Jobs in in Missouri | Randstad USA

Randstad USA

Find Mortgage Fraud Attorney jobs in in Missouri at Randstad. We have jobs, including temporary and permanent positions to help you reach your …

 

 

 

 
 

Mortgage Fraud Risk Analyst – Be Hired In

Be Hired In

Please review the following job description: Provide fraud risk subject matter expertise in mortgage loan file review and support of underwriting and …

 

 

 

 
 

New Jersey Attorney Disbarred Following Conviction in $873K Mortgage Fraud Scheme

News-Europe.fr

New Jersey Attorney Disbarred Following Conviction in $873K Mortgage Fraud Scheme | New Jersey Law Journal Law.com Source link …

 

 

 

 

 

 

What is MERS?

What is MERS? MERS is the Mortgage Electronic Registration System and it is an electronic database that holds digitized mortgage loan documents. You can search the MERS Database here: The MERS Servicer ID to identify the servicer associated with a mortgage loan registered on the MERS System.

 

Bankers Association testified to THE FLORIDA SUPREME COURT (in CASE NO.: 09-1460) that the physical loan documents were deliberately destroyed to avoid any confusion upon their conversion to electronic files. CASE 09-1460 COMMENTS OF THE FLORIDA BANKERS ASSOCIATION

 

In other words, the Banksters deliberately destroyed the wet ink signature loan documents for millions of mortgages in MERS the Mortgage Electronic Registration System.

A Few Facts about MERS

  1. Mortgage Electronic Registration Systems (MERS) is incorporated within the State of Delaware.
  2. Mortgage Electronic Registration Systems (MERS) was first incorporated in Delaware in 1999.
  3. The total number of shares of common stock authorized by MERS’ articles of incorporation is 1,000.
  4. The total number of shares of Mortgage Electronic Registration Systems (MERS) common stock actually issued is 1,000.
  5. Mortgage Electronic Registration Systems (MERS) is a wholly owned subsidiary of MERSCorp, Inc.
  6. MERS’ principal place of business at 1595 Spring Hill Road, Suite 310, Vienna, Virginia 22182
  7. MERS’ national data center is located in Plano, Texas.
  8. MERS’ serves as a “nominee” of mortgages and deeds of trust recorded in all fifty states.
  9. Over 50 million loans have been registered on the Mortgage Electronic Registration Systems (MERS) system. (UPDATE 9/11/2011: 70 MILLION American Mortgages)
  10. MERS’ federal tax identification number is “541927784”.
  11. Mortgage Electronic Registration Systems (MERS) does not take applications for, underwrite or negotiate mortgage loans.
  12. Mortgage Electronic Registration Systems (MERS) does not make or originate mortgage loans to consumers.
  13. Mortgage Electronic Registration Systems (MERS) does not extend any credit to consumers.
  14. Mortgage Electronic Registration Systems (MERS) has no role in the origination or original funding of the mortgages or deeds of trust for which it serves as “nominee”.
  15. Mortgage Electronic Registration Systems (MERS) does not service mortgage loans.
  16. Mortgage Electronic Registration Systems (MERS) does not sell mortgage loans.
  17. Mortgage Electronic Registration Systems (MERS) is not an investor who acquires mortgage loans on the secondary market.
  18. Mortgage Electronic Registration Systems (MERS) does not ever receive or process mortgage applications.
  19. Mortgage Electronic Registration Systems (MERS) simply holds mortgage liens in a nominee capacity and through its electronic registry, tracks changes in the ownership of mortgage loans and servicing rights related thereto.
  20. MERS© System is not a vehicle for creating or transferring beneficial interests in mortgage loans.
  21. Mortgage Electronic Registration Systems (MERS) is not named as a beneficiary of the alleged promissory note.
  22. Mortgage Electronic Registration Systems (MERS) is never the owner of the promissory note for which it seeks foreclosure.
  23. Mortgage Electronic Registration Systems (MERS) has no legal or beneficial interest in the promissory note underlying the security instrument for which it serves as “nominee”.
  24. Mortgage Electronic Registration Systems (MERS) has no legal or beneficial interest in the loan instrument underlying the security instrument for which it serves as “nominee”
  25. Mortgage Electronic Registration Systems (MERS) has no legal or beneficial interest in the mortgage indebtedness underlying the security instrument for which it serves as “nominee”.
  26. Mortgage Electronic Registration Systems (MERS) has no interest at all in the promissory note evidencing the mortgage indebtedness.
  27. Mortgage Electronic Registration Systems (MERS)is not a party to the alleged mortgage indebtedness underlying the security instrument for which it serves as “nominee”.
  28. Mortgage Electronic Registration Systems (MERS) has no financial or other interest in whether or not a mortgage loan is repaid.
  29. Mortgage Electronic Registration Systems (MERS) is not the owner of the promissory note secured by the mortgage and has no rights to the payments made by the debtor on such promissory note.
  30. Mortgage Electronic Registration Systems (MERS) does not make or acquire promissory notes or debt instruments of any nature and therefore cannot be said to be acquiring mortgage loans.
  31. Mortgage Electronic Registration Systems (MERS) has no interest in the notes secured by mortgages or the mortgage servicing rights related thereto.
  32. Mortgage Electronic Registration Systems (MERS) does not acquire any interest (legal or beneficial) in the loan instrument (i.e., the promissory note or other debt instrument).
  33. Mortgage Electronic Registration Systems (MERS) has no rights whatsoever to any payments made on account of such mortgage loans, to any servicing rights related to such mortgage loans, or to any mortgaged properties securing such mortgage loans.
  34. The note owner appoints MERS to be its agent to only hold the mortgage lien interest, not to hold any interest in the note.
  35. Mortgage Electronic Registration Systems (MERS) does not hold any interest (legal or beneficial) in the promissory notes that are secured by such mortgages or in any servicing rights associated with the mortgage loan.
  36. The debtor on the note owes no obligation to MERS and does not pay Mortgage Electronic Registration Systems (MERS)on the note.
  37. Mortgage Electronic Registration Systems (MERS) is not entitled to receive any of the payments associated with the alleged mortgage indebtedness.
  38. Mortgage Electronic Registration Systems (MERS) is not entitled to receive any of the interest revenue associated with mortgage indebtedness for which it serves as “nominee”.
  39. Interest revenue related to the mortgage indebtedness for which Mortgage Electronic Registration Systems (MERS) serves as “nominee” is never reflected within MERS’ bookkeeping or accounting records nor does such interest influence MERS’ earnings.
  40. Mortgage indebtedness for which Mortgage Electronic Registration Systems (MERS) serves as the serves as “nominee” is not reflected as an asset on MERS’ financial statements.
  41. Failure to collect the outstanding balance of a mortgage loan will not result in an accounting loss by Mortgage Electronic Registration Systems (MERS).
  42. When a foreclosure is completed, MERS never actually retains or enjoys the use of any of the proceeds from a sale of the foreclosed property, but rather would remit such proceeds to the true party at interest.
  43. Mortgage Electronic Registration Systems (MERS) is not actually at risk as to the payment or nonpayment of the mortgages or deeds of trust for which it serves as “nominee”.
  44. Mortgage Electronic Registration Systems (MERS) has no pecuniary interest in the promissory notes or the mortgage indebtedness for which it serves as “nominee”.
  45. Mortgage Electronic Registration Systems (MERS) is not personally aggrieved by any alleged default of a promissory note for which it serves as “nominee”.
  46. There exists no real controversy between MERS and any mortgagor alleged to be in default.
  47. Mortgage Electronic Registration Systems (MERS) has never suffered any injury by arising out of any alleged default of a promissory note for which it serves as “nominee”.
  48. Mortgage Electronic Registration Systems (MERS) holds the mortgage lien as nominee for the owner of the promissory note.
  49. Mortgage Electronic Registration Systems (MERS), in a nominee capacity for lenders, merely acquires legal title to the security instrument (i.e., the deed of trust or mortgage that secures the loan).
  50. Mortgage Electronic Registration Systems (MERS) simply holds legal title to mortgages and deeds of trust as a nominee for the owner of the promissory note.
  51. Mortgage Electronic Registration Systems (MERS) immobilizes the mortgage lien while transfers of the promissory notes and servicing rights continue to occur.
  52. The investor continues to own and hold the promissory note, but under the MERS® System, the servicing entity only holds contractual servicing rights and MERS holds legal title to the mortgage as nominee for the benefit of the investor (or owner and holder of the note) and not for itself.
  53. In effect, the mortgage lien becomes immobilized by Mortgage Electronic Registration Systems (MERS) continuing to hold the mortgage lien when the note is sold from one investor to another via an endorsement and delivery of the note or the transfer of servicing rights from one Mortgage Electronic Registration Systems (MERS) member to another Mortgage Electronic Registration Systems (MERS) member via a purchase and sale agreement which is a non-recordable contract right.
  54. Legal title to the mortgage or deed of trust remains in MERS after such transfers and is tracked by Mortgage Electronic Registration Systems (MERS) in its electronic registry.
  55. Mortgage Electronic Registration Systems (MERS) holds legal title to the mortgage for the benefit of the owner of the note.
  56. The beneficial interest in the mortgage (or person or entity whose interest is secured by the mortgage) runs to the owner and holder of the promissory note and/or servicing rights thereunder.
  57. Mortgage Electronic Registration Systems (MERS) has no interest at all in the promissory note evidencing the mortgage loan.
  58. Mortgage Electronic Registration Systems (MERS) does not acquire an interest in promissory notes or debt instruments of any nature.
  59. The beneficial interest in the mortgage (or the person or entity whose interest is secured by the mortgage) runs to the owner and holder of the promissory note (NOT MERS).

Fraud Stoppers MERS wins in four Pennsylvania county lawsuits

MERS as Holder

  1. Mortgage Electronic Registration Systems (MERS) is never the holder of a promissory note in the ordinary course of business.
  2. Mortgage Electronic Registration Systems (MERS) is not a custodian of promissory notes underlying the security instrument for which it serves as “nominee”.
  3. Mortgage Electronic Registration Systems (MERS) does not even maintain copies of promissory notes underlying the security instrument for which it serves as “nominee”.
  4. Sometimes when an investor or servicer desires to foreclose, the servicer obtains the promissory note from the custodian holding the note on behalf of the mortgage investor and places that note in the hands of a servicer employee who has been appointed as an officer (vice president and assistant secretary) of MERS by corporate resolution.
  5. When a promissory note is placed in the hands of a servicer employee who is also an Mortgage Electronic Registration Systems (MERS) officer, Mortgage Electronic Registration Systems (MERS) asserts that this transfer of custody into the hands of this nominal officer (without any transfer of ownership or beneficial interest) renders Mortgage Electronic Registration Systems (MERS) the holder.
  6. No consideration or compensation is exchanged between the owner of the promissory note and Mortgage Electronic Registration Systems (MERS) in consideration of this transfer in custody.
  7. Even when the promissory note is physically placed in the hands of the servicer’s employee who is a nominal Mortgage Electronic Registration Systems (MERS) officer, Mortgage Electronic Registration Systems (MERS) has no actual authority to control the foreclosure or the legal actions undertaken in its name.
  8. Mortgage Electronic Registration Systems (MERS) will never willingly reveal the identity of the owner of the promissory note unless ordered to do so by the court.
  9. Mortgage Electronic Registration Systems (MERS) will never willingly reveal the identity of the prior holders of the promissory note unless ordered to do so by the court.
  10. Since the transfer in custody of the promissory note is not for consideration, this transfer of custody is not reflected in any contemporaneous accounting records.
  11. Mortgage Electronic Registration Systems (MERS)is never a holder in due course when the transfer of custody occurs after default.
  12. Mortgage Electronic Registration Systems (MERS) is never the holder when the promissory note is shown to be lost or stolen.

 

MERS’ Role in Mortgage Servicing

  1. Mortgage Electronic Registration Systems (MERS) does not service mortgage loans.
  2. Mortgage Electronic Registration Systems (MERS) is not the owner of the servicing rights relating to the mortgage loan and Mortgage Electronic Registration Systems (MERS) does not service loans.
  3. Mortgage Electronic Registration Systems (MERS) does not collect mortgage payments.
  4. Mortgage Electronic Registration Systems (MERS) does not hold escrows for taxes and insurance.
  5. Mortgage Electronic Registration Systems (MERS) does not provide any servicing functions on mortgage loans, whatsoever.
  6. Those rights are typically held by the servicer of the loan, who may or may not also be the holder of the note.

 

MERS’ Rights To Control the Foreclosure

  1. Mortgage Electronic Registration Systems (MERS) must all times comply with the instructions of the holder of the mortgage loan promissory notes.
  2. Mortgage Electronic Registration Systems (MERS) only acts when directed to by its members and for the sole benefit of the owners and holders of the promissory notes secured by the mortgage instruments naming Mortgage Electronic Registration Systems (MERS) as nominee owner.
  3. MERS’ members employ and pay the attorneys bringing foreclosure actions in MERS’ name.

 

MERS’ Access To or Control over Records or Documents

  1. Mortgage Electronic Registration Systems (MERS) has never maintained archival copies of any mortgage application for which it serves as “nominee”.
  2. In its regular course of business, Mortgage Electronic Registration Systems (MERS) as a corporation does not maintain physical possession or custody of promissory notes, deeds of trust or other mortgage security instruments on behalf of its principals.
  3. MERS as a corporation has no archive or repository of the promissory notes secured by deeds of trust or other mortgage security instruments for which it serves as nominee.
  4. Mortgage Electronic Registration Systems (MERS) as a corporation is not a custodian of the promissory notes secured by deeds of trust or other mortgage security instruments for which it serves as nominee.
  5. Mortgage Electronic Registration Systems (MERS) as a corporation has no archive or repository of the deeds of trust or other mortgage security instruments for which it serves as nominee.
  6. In its regular course of business, Mortgage Electronic Registration Systems (MERS) as a corporation does not routinely receive or archive copies of the promissory notes secured by the mortgage security instruments for which it serves as nominee.
  7. In its regular course of business, Mortgage Electronic Registration Systems (MERS) as a corporation does not routinely receive or archive copies of the mortgage security instruments for which it serves as nominee.
  8. Copies of the instruments attached to MERS’ petitions or complaints so not come from MERS’ corporate files or archives.
  9. In its regular course of business, Mortgage Electronic Registration Systems (MERS) as a corporation does not input the promissory note or mortgage security instrument ownership registration data for new mortgages for which it serves as nominee, but rather the registration information for such mortgages are entered by the “member” mortgage lenders, investors and/or servicers originating, purchasing, and/or selling such mortgages or mortgage servicing rights.
  10. Mortgage Electronic Registration Systems (MERS) does not maintain a central corporate archive of demands, notices, claims, appointments, releases, assignments, or other files, documents and/or communications relating to collections efforts undertaken by Mortgage Electronic Registration Systems (MERS) officers appointed by corporate resolution and acting under its authority.

 

Management and Supervision

  1. In preparing affidavits and certifications, officers of Mortgage Electronic Registration Systems (MERS), including Vice Presidents and Assistant Secretaries, making representations under MERS’ authority and on MERS’ behalf, are not primarily relying upon books of account, documents, records or files within MERS’ corporate supervision, custody or control.
  2. Officers of Mortgage Electronic Registration Systems (MERS) preparing affidavits and certifications, including Vice Presidents and Assistant Secretaries, and otherwise making representations under MERS’ authority and on MERS’ behalf, do not routinely furnish copies of these affidavits or certifications to MERS for corporate retention or archival.
  3. Officers of Mortgage Electronic Registration Systems (MERS) preparing affidavits and certifications, including Vice Presidents and Assistant Secretaries, and otherwise making representations under MERS’ authority and on MERS’ behalf are not working under the supervision or direction of senior Mortgage Electronic Registration Systems (MERS) officers or employees, but rather are supervised by personnel employed by mortgage investors or mortgage servicers.

This should be a pretty good start for those of you faced with a foreclosure in which Mortgage Electronic Registration Systems (MERS) is falsely asserting that it is the owner of the promissory note.  Whether Mortgage Electronic Registration Systems (MERS) is or was ever the holder is a FACT QUESTION which can be determined only by ascertaining the chain of custody of the promissory note.  When the promissory note is lost, missing or stolen, Mortgage Electronic Registration Systems (MERS) is NOT the holder.

By William A. Roper, Jr. Excerpted from the MSFraud Forum thread “Facts about MERS / MERS Unmasked”

Is Your MERS Mortgage Status Designated Inactive?

Many homeowners find out their existing mortgage is listed as “inactive.” An inactive status can refer to the transfer of their mortgage to another loan servicer, or to a few other factors as noted below.

The difference between having an inactive or an active MERS (Mortgage Electronic Registration System) loan may determine if the property owner has any improved or worsened home equity, or a truly saleable asset.

 

What is MERS?

MERS functions as a centralized electronic registry of mortgages, and it was supposed to track the ownership of these mortgages, which are typically sold multiple times during the loan’s life. MERS potentially affects upwards of 70 million residential mortgage loans nationwide, and almost completely crashed the U.S. housing market by itself because of so many problems with the packages.

MERS was created by lenders and title insurance companies, so it would be easier to transfer the beneficial interests to other secondary market lenders. Yet, some mortgages ended up significantly discounted due to packaging problems, which made them inactive.

Where’s the “IOU” for the mortgage debt?

 

The MERS Scandal

Missing documents, notary fraud, and “robo-signing” led the way.

There was a lot of chaos involved with MERS mortgage packets, which contained no original promissory notes (the “IOU” for the mortgage debt) in these same MERS files.

Knowledgeable homeowners were able to completely stop their home foreclosures by pointing out that the foreclosing entity, such as the mortgage servicing company, didn’t have a legal right to foreclose on their homes, since they didn’t have all of their valid mortgage paperwork in their files.

These questionable ownership interests in the mortgages led to foreclosure moratoriums, court settlements, and inactive statuses.

There were a large number of allegations of notary fraud in which real or fake notaries such as “Linda Green” were allegedly part of the massive “Robo-Signing Scandal” nationwide.

It has been suggested that promissory notes, deeds of trust or mortgages, and other loan or title documents were forged, left blank, or illegally assigned to numerous mortgage investors. Since MERS was set up to become as paperless, speedy, and efficient as possible, there was not enough third party oversight to check whether these documents were valid.

 

Questionable Beneficial Interests

“No Note = No Debt” became the mantra for homeowners who were in the midst of their own foreclosures due to the weaker U.S. economy. Some savvy property owners were able to legally void their existing mortgage debt altogether by proving that the foreclosing mortgage company had no valid beneficial interests in the existing mortgage, and thus had to legal right to collect any payments.

Other homeowners were able to show that their MERS files had fraudulent notary signatures signed on behalf of both owners and lenders, which moved their file designations over to “inactive” as well.

Mortgage lenders that have collapsed or imploded since the official start of the Credit Crisis back in 2007, such as Countrywide, Indy Mac, Lehman Brothers, World Savings, Downey Savings, and Washington Mutual still figuratively exist by way of their asset or beneficial interest transfers to the “strawman” named MERS.

MERS may pay no taxes or employ anyone. Without the proper assignment of these MERS mortgages, these same imploded mortgage companies’ loans could have ceased to exist.

 

The Shadow Inventory & MERS

Instead of upwards of 60 million residential MERS mortgages becoming inactive or possibly even completely voided and worthless, many of the largest banks and mortgage service companies worked closely with the U.S. government to create the National Mortgage Settlement in early 2012. This insanely small $25 billion settlement is but a mere fraction of the potentially trillions of dollars of MERS mortgages nationwide.

The National Mortgage Settlement of 2012 and MERS Scandal were two of the primary reasons why home listings nationally dropped dramatically.

There were potentially millions of Shadow Inventory homes (mortgage payments are more than 90 days late), which may not have valid promissory notes, or other mortgage or title instruments or documents, in the files. The lack of listed home inventory led to a rapid increase of home prices between 2011 and 2013 (also partly due to the record low mortgage rates).

 

The “Inactive” MERS Designation

An inactive MERS designation may relate to the loan having been refinanced or paid off, discounted, or completely voided due to the invalid mortgage documents in the file. Or, the mortgage loan was assigned out of the MERS system to a completely new mortgage servicing company.

A property owner with a MERS mortgage can find the status of their loan by searching for their 18-digit Mortgage Identification Number (MERS MIN). Then, the same person may search online for the MERS Servicer ID system in order to check the status of their mortgage.

Before attempting to pay off a MERS loan, it’s very important to find out if all of the mortgage payments have been properly applied to the account. The vast majority of MERS mortgages have been assigned to multiple mortgage investors over the years, so it is very important to check your own payment history over the years in order to determine if all of your payments have been credited to every mortgage servicing lender’s accounts.

It’s imperative that the owner pays off the correct amounts, which may mean more money back to the owner and much less money for the current mortgage loan servicer. As such, a little research and loan analysis by a property owner on their personal payment histories can save them a lot of money and headaches.

Here is some additional information on MERS:

 

Take action right now and get the FACTS and HELP that you need to gain the legal remedy that the law entitles you to, and that you deserve!

MERS Is Dead

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MERS Is Dead: Can Be Sued For Fraud: WA Supreme Court

Countdown to banks forcing Congress to protect MERS in 3,2,1…

State Court Ruling Deals Body Blow to MERS

(Reuters) – The highest court in the state of Washington recently ruled that a company that has foreclosed on millions of mortgages nationwide can be sued for fraud, a decision that could cause a new round of trouble for the nation’s banks.

The ruling is one of the first to allow consumers to seek damages from Mortgage Electronic Registration Systems, a company set up by the nation’s major banks, if they can prove they were harmed.

Legal experts said last month’s decision from the Washington Supreme Court could become a precedent for courts in other states. The case also endorsed the view of other state courts that MERS does not have the legal authority to foreclose on a home.

“This is a body blow,” said consumer law attorney Ira Rheingold. “Ultimately the MERS business model cannot work and should not work and needs to be changed.”

Banks set up MERS in the 1990s to help speed the process of packaging loans into mortgage-backed bonds by easing the process of transferring mortgages from one party to another. But ever since the housing crash, MERS has been besieged by litigation from state attorneys general, local government officials and homeowners who have challenged the company’s authority to pursue foreclosure actions.

A spokeswoman for MERS said the company is confident its role in the financial system will withstand legal challenges.

The Washington Supreme Court held that MERS’ business practices had the “capacity to deceive” a substantial portion of the public because MERS claimed it was the beneficiary of the mortgage when it was not.

This finding means that in actions where a bank used MERS to foreclose, the consumer can sue it for fraud. If the foreclosure can be challenged, MERS’ involvement would make repossession more complicated.

On top of that, virtually any foreclosed homeowner in the state in the past 15 years who feels they have been harmed in some way could file a consumer fraud suit.

“This may be the beginning of a trend,” says Elizabeth Renuart, a professor at Albany Law School focusing on consumer credit law.

The company’s history dates back to the 1990s, when banks began aggressively bundling home loans into mortgage-backed securities. The banks formed MERS to speed up the handling of all the paperwork associated with recording the filing of a deed and the subsequent inclusion of a mortgage in an entity that issues a mortgage-backed security.

MERS allowed the banks to save time and money because it permitted lenders to bypass the process of filing paperwork with the local recorder of deeds every time a mortgage was sold.

Instead, banks put MERS’ name on the deed. And when they bought and sold mortgages, they just recorded the transfer of ownership of the note in the MERS system.

The MERS’ database was supposed to keep track of where those loans went. The company’s motto: “Process loans, not paperwork.”

But the foreclosure crisis revealed major flaws with the MERS database.

The plaintiffs in the Washington case, homeowners Kristin Bain and Kevin Selkowitz, argued that the problems with the MERS database made it difficult, if not impossible; to determine who really owned their loan. It’s an argument that has been raised in numerous other lawsuits challenging the ability of MERS to foreclose on a home.

“It’s going to be very easy for consumers to say they were harmed because it’s inherently misleading,” says Geoff Walsh, an attorney with the National Consumer Law Center. If consumers can’t identify who owns their loan, then they don’t know whom to negotiate with, and can’t even be certain of the legitimacy of the foreclosure.

In a statement, MERS spokeswoman Janis Smith noted that banks stopped using MERS’ name to foreclose last year. She added that the opinion will “create confusion” for homeowners in the state of Washington while the trial courts consider its effect on pending cases.

Meanwhile, MERS is attempting to remake itself. The company has a new chief executive and a new branding campaign. In Washington D.C. federal lawmakers have recognized the need to create a national mortgage-recording database that would track all U.S. mortgages. MERS is lobbying to build it.

The case is Bain (Kristin), et al. v. Mortg. Elec. Registration Sys., et al., Washington Supreme Court, No. 86206-1.

For information on foreclosure defense call us at 800-459-1215. We offer litigation support, admissible evidence, expert witness testimony, education, training, and support in all 50 states to attorneys and pro se homeowners.

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