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“The banks created the MERS system as an end-run around the property recording system, to facilitate the rapid securitization and sale of mortgages. Once the mortgages went sour, these same banks brought foreclosure proceedings en masse based on deceptive and fraudulent court submissions, seeking to take homes away from people with little regard for basic legal requirements or the rule of law,” said Attorney General Schneiderman. “Our action demonstrates that there is one set of rules for all – no matter how big or powerful the institution may be – and that those rules will be enforced vigorously. Only through real accountability for the illegal and deceptive conduct in the foreclosure crisis will there be justice for New York’s homeowners.”

I've been studying MERS for some time. Imagine the lien on your car that banks hold. Then imagine that all the banks decided that they would build a computerized system to track all the liens. They would brush aside the state DMV departments and just do it themselves. Because they did not want to pay the state fees and because they wanted to bundle all the car loans and then sell them as some kind of financial instrument.

That is kind of what MERS was set up for. Like my example for vehicles, there is NO LEGAL BASIS for some private entity to simply take over the government function of tracking mortgages just because some lawyers tell them they can.

MERS is the biggest financial mess in American history. Why? Because the transfer of mortgages on millions of loans are not legal because they occurred outside of the counties. Which brings up all sorts of problems. A person may have had their house foreclosed on and then was evicted. Based upon totally bogus documentation. That house then may have been sold to another party in a fashion that is technically fraudulent. The problem is that the original deed was recorded properly. So, the original owner may still be the real owner and the person that bought the house at foreclosure is not. That is why lawyers have been able to have some people simply show back up at their house they were kicked out of and LEGALLY move back in.

This is all a huge mess. A monster mess.

MERS itself may owe TRILLIONS in fees to various counties across the country for what they did. This is all a very scary situation....