MERS Admits NO Interest in Mortgage and No Loss on Default

Arnold admitted MERS does not have a beneficial interest in any mortgage; does not loan money; does not suffer a default if monies are not paid; etc.. The internal agreement used by MERS expressly disavows any beneficial interest.

On September 25, 2009, R.K. Arnold, the President and CEO of MERSCORP, Inc. — the parent corporation of Mortgage Electronic Registration Systems, Inc. was deposed in Alabama. Arnold is also an Officer of MERS. Arnold admitted MERS does not have a beneficial interest in any mortgage; does not loan money; does not suffer a default if monies are not paid; etc. etc. On November 11, 2009, William C. Hultman was deposed in Alabama and made the same admissions. And, of course, the internal agreement used by MERS expressly disavows any beneficial interest.

One tactic, if confronted with a foreclosure in Nevada, is to elect mediation. At the mediation, demand the assignments, i.e., the assignments which would cure the problem (according to Judge Riegle’s March 31, 2009, opinion, as affirmed by Judge Dawson on December 4, 2009). MERS and/or the lender have been unable to produce any such assignments — because they almost certainly do not exist.

Request the Mediator to check the appropriate box, i.e., the box which memorializes a failure by the lender to produce all required documents (all assignments must be produced per AB 149 — incorporated into Chapter 107 of the Nevada Revised Statutes). The requisite Certificate will not issue as a result. The Notice of Default is effectively negated. The “lender” must thereupon issue a new Notice and the borrower is again at liberty to elect mediation within 30 days of receipt thereof. The borrower should pay his or her taxes, and insurance, but not the mortgage — especially if upside down. It is an effective stopgap measure.

If the courts continue to follow the reasoning of Judge Riegle and Dawson a borrower may, if otherwise eligible, declare bankruptcy; bring an adversary proceeding within the bankruptcy; and discharge the “mortgage” debt (which re a MERS mortgage is not really a mortgage but rather an unsecured debt — per Judge Riegle).

Or the borrower may initiate litigation based on causes of action for breach of contract, fraud by omission and racketeering (Chapter 207 of the Nevada Revised Statutes). By conducting systemic predatory lending, and coupling predatory lending with credit default swaps, i.e., bets homes would be foreclosed upon, the lenders breached the implied duty of good faith and fair dealing — the duty to refrain from frustrating the purpose of the contract. Borrowers generally harbored two main purposes — to secure a place to live and to safeguard/create an investment. By engaging in systemic predatory lending the banks frustrated the second purpose. They devalued the collaterized asset and breached the lending contract.

Because this information was not disclosed, fraud by omission occurred. A series of fraudulent act constitutes racketeering, which gives rise to a claim for treble damages, plus fees and costs. Those are the theories.

Exposing Mortgage Fraud: How FRAUD STOPPERS’ Free Analysis Empowers Borrowers

In a stunning revelation, MERS (Mortgage Electronic Registration Systems) has recently admitted that it holds no beneficial interest in any mortgage, does not loan money, and does not suffer default if payments are not made. This admission has raised serious questions about the legitimacy of mortgage practices and the potential for fraud. Fortunately, FRAUD STOPPERS, a leading organization specializing in mortgage fraud analysis, offers a valuable resource for borrowers seeking to protect their rights and potentially benefit from these revelations.

Unveiling the Truth:

During depositions in Alabama, R.K. Arnold, the President and CEO of MERSCORP, Inc., the parent company of MERS, admitted the organization’s lack of beneficial interest in any mortgage. Furthermore, William C. Hultman, another key figure at MERS, affirmed the same admissions. These admissions shed light on the internal agreement used by MERS, which explicitly disavows any beneficial interest.

Implications for Borrowers:

For borrowers facing foreclosure, this revelation has significant implications. One recommended strategy is to opt for mediation if confronted with a foreclosure situation in Nevada. During the mediation process, borrowers can demand the necessary assignments that would rectify the problem, as per Judge Riegle’s opinion. However, MERS and/or the lender often fail to produce the required assignments, suggesting that they may not exist at all.

Taking Advantage of the System:

When attending mediation, borrowers should request the mediator to check the box indicating the lender’s failure to produce all required documents, as mandated by AB 149 and Chapter 107 of the Nevada Revised Statutes. This action prevents the issuance of the requisite certificate and effectively nullifies the Notice of Default. Consequently, the lender must issue a new Notice, providing the borrower with another opportunity to elect mediation within 30 days. During this period, borrowers are advised to fulfill their tax and insurance obligations while refraining from mortgage payments, especially if they are upside down on their loans. This strategic measure serves as an effective stopgap solution.

Legal Recourse for Borrowers:

If the courts continue to adopt the reasoning of Judge Riegle and Dawson, eligible borrowers may consider declaring bankruptcy and initiating an adversary proceeding within the bankruptcy. This approach could potentially lead to the discharge of the “mortgage” debt, which, in the case of MERS mortgages, is deemed an unsecured debt according to Judge Riegle’s ruling.

Furthermore, borrowers may choose to pursue litigation based on causes of action for breach of contract, fraud by omission, and racketeering, as outlined in Chapter 207 of the Nevada Revised Statutes. By demonstrating that systemic predatory lending occurred, coupled with the utilization of credit default swaps, borrowers can argue that the lenders breached the implied duty of good faith and fair dealing. The devaluation of collateralized assets and the failure to disclose vital information constitute fraud by omission. This series of fraudulent acts could potentially be categorized as racketeering, thereby enabling borrowers to claim treble damages, plus fees and costs.

Leveraging FRAUD STOPPERS’ Free Mortgage Fraud Analysis:

In light of these revelations, borrowers must be proactive in safeguarding their rights and potentially benefiting from the situation. FRAUD STOPPERS offers a free mortgage fraud analysis service, providing borrowers with expert guidance and evaluation of their mortgage agreements. By leveraging their expertise, borrowers can gain a comprehensive understanding of their legal options and potential avenues for redress.

The recent admission by MERS regarding its lack of beneficial interest in mortgages has exposed a potential web of fraud within the mortgage industry. Borrowers now have an opportunity to challenge the legitimacy of their loans and seek compensation for any harm they may have suffered.

Unmasking Mortgage Fraud: FRAUD STOPPERS and Bloomberg Securitization Audit Empowering Homeowners in the Battle against Foreclosure

In a shocking revelation, MERS (Mortgage Electronic Registration Systems) has recently admitted that it possesses no beneficial interest in any mortgage, does not loan money, and does not suffer default if payments are not made. This stunning admission raises serious questions about the integrity of mortgage practices and the potential for fraud. Fortunately, FRAUD STOPPERS, a trusted organization renowned for its expertise in mortgage fraud analysis, offers invaluable assistance to homeowners seeking to protect their rights and take advantage of this new development. Additionally, the Bloomberg Securitization Audit, offered by FRAUD STOPPERS, provides homeowners with powerful tools to fight foreclosure and uncover potential legal avenues for recourse.

Unveiling the Truth:

During depositions in Alabama, R.K. Arnold, the President and CEO of MERSCORP, Inc., the parent company of MERS, admitted the organization’s complete lack of beneficial interest in any mortgage. This astonishing revelation was further substantiated when William C. Hultman, another prominent figure at MERS, echoed the same admissions. These admissions shed light on the internal agreement employed by MERS, which explicitly disavows any beneficial interest in mortgages.

Implications for Homeowners:

The implications of MERS’ admission are significant for homeowners facing the threat of foreclosure. One recommended strategy is to opt for mediation if confronted with a foreclosure situation in Nevada. During the mediation process, homeowners can demand the necessary assignments that would rectify the problem, as per Judge Riegle’s opinion. However, in many cases, MERS and/or the lender fail to produce the required assignments, raising doubts about their existence altogether.

Leveraging the Bloomberg Securitization Audit:

In this battle against foreclosure, homeowners can find a powerful ally in FRAUD STOPPERS and their Bloomberg Securitization Audit. This comprehensive audit service offered by FRAUD STOPPERS utilizes advanced technology and expert analysis to examine the intricate web of securitization behind a mortgage loan. By scrutinizing the chain of ownership and the proper transfer of loan documents, the Bloomberg Securitization Audit can uncover critical information that can be used as evidence in legal proceedings.

Armed with the findings of the Bloomberg Securitization Audit, homeowners gain a significant advantage in challenging the legitimacy of their mortgage. The audit report can expose irregularities, gaps in the chain of title, and potential violations of state and federal laws. This information can form the foundation for a robust legal defense against foreclosure, allowing homeowners to fight back with greater confidence and efficacy.

Exploring Legal Recourse:

The Bloomberg Securitization Audit empowers homeowners by providing them with crucial evidence to pursue various legal avenues. Based on the audit findings, homeowners can consider initiating legal actions such as breach of contract, fraud by omission, and racketeering. These causes of action, as outlined in Chapter 207 of the Nevada Revised Statutes, allow homeowners to hold lenders accountable for systemic predatory lending practices, the devaluation of collateralized assets, and the failure to disclose vital information.

Furthermore, homeowners, if eligible, may also consider declaring bankruptcy and initiating an adversary proceeding within the bankruptcy process. The evidence uncovered through the Bloomberg Securitization Audit can support claims for the discharge of the “mortgage” debt, which, in the case of MERS mortgages, can be classified as an unsecured debt as per Judge Riegle’s ruling.

The Role of FRAUD STOPPERS:

FRAUD STOPPERS has emerged as a leading advocate for homeowners facing foreclosure and seeking justice in the wake of mortgage fraud revelations. Apart from offering the invaluable Bloomberg Secur

itization Audit, FRAUD STOPPERS provides expert guidance, legal resources, and a supportive community for homeowners. Their team of experienced professionals helps homeowners navigate the complex legal landscape, enabling them to make informed decisions and take appropriate action to protect their rights.

The recent admission by MERS regarding its lack of beneficial interest in mortgages has peeled back the layers of potential fraud within the mortgage industry. Homeowners now have an unprecedented opportunity to challenge the legitimacy of their loans and seek compensation for any harm suffered. By leveraging the power of the Bloomberg Securitization Audit offered by FRAUD STOPPERS, homeowners can arm themselves with evidence to fight foreclosure, expose fraudulent practices, and explore legal avenues for recourse. With FRAUD STOPPERS by their side, homeowners can stand up against mortgage fraud and safeguard their rights.