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Judge Finds MERS Has No Right To Transfer Mortgages, Finds Entire MERS Process Illegal

Tyler Durden's picture


There was a time when news, especially very bad news, moved stocks. The last time that occurred was in the middle of 2009, before most robots had any idea just how massive the chairsatan's schizoid break with reality was. Now, that the appropriate sociopathology is fully priced in, bad news tends to have an even more profound upside impact on stocks than good news, as it guarantees that the Zimbabwe stock market will be upon us far sooner than if the economy were to have to go through another inter-QE episode. Which is why the just released news out of US Bankruptcy Judge Robert Grossman of Central Islip, New York, that MERS lacks rights to transfer mortgages will likely send the entire S&P circuit breaker up.

From Bloomberg:

“Merscorp Inc., operator of the electronic-registration system that contains about half of all U.S. home mortgages, has no right to transfer the mortgages under its membership rules, a judge said...U.S. Bankruptcy Judge Robert E. Grossman in Central Islip, New York, in a decision he said he knew would have a “significant impact,” wrote that the membership rules of the company’s Mortgage Electronic Registration Systems, or MERS, don’t make it an agent of the banks that own the mortgages..."

“MERS’s theory that it can act as a ‘common agent’ for undisclosed principals is not supported by the law,” Grossman wrote in a Feb. 10 opinion. “MERS did not have authority, as ‘nominee’ or agent, to assign the mortgage absent a showing that it was given specific written directions by its principal.”

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,” Grossman wrote. “The court does not accept the argument that because MERS may be involved with 50 percent 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.

“An adverse ruling regarding MERS’s authority to assign mortgages or act on behalf of its member/lenders could have a significant impact on MERS and upon the lenders which do business with MERS throughout the United States,” Grossman wrote. “It is up to the legislative branch, if it chooses, to amend the current statutes to confer upon MERS the requisite authority to assign mortgages under its current business practices.”

“Without more, this court finds that MERS’s ‘nominee’ status and the rights bestowed upon MERS within the mortgage itself, are insufficient to empower MERS to effectuate a valid assignment of mortgage,” the judge wrote. “MERS’s position that it can be both the mortgagee and an agent of the mortgagee is absurd, at best.”

And with MERS now found to be a fraud, we expect MERS Commercial authority to be likewise eliminated. Which means that the entire US mortgage market, both residential and commercial, is a lie, and built on fraudulent foundations, and that every single MERS-mediated transaction will likely have to be unwound.

In reality what will happen, is that the Banker lobby will have to purchase a few more Appelate Judges, and in the worst case, a SCOTUS dude here and there, appeal the ruling to death, and end up victorious. After all, it is only taxpayer money.




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Mon, 02/14/2011 - 16:35 | 960862 duncecap rack
duncecap rack's picture


Mon, 02/14/2011 - 16:57 | 961007 Thomas
Thomas's picture

Totally awesome.

Mon, 02/14/2011 - 17:06 | 961054 Rusty_Shackleford
Rusty_Shackleford's picture

Alright Hamilton!

Mon, 02/14/2011 - 17:29 | 961178 Judge Judy Scheinlok
Judge Judy Scheinlok's picture





Mon, 02/14/2011 - 17:44 | 961259 waylon153
waylon153's picture

What a joke!  This story broke on Bloomberg 1.5 hours ago and now you can't even find unless already you know it exists and specifically search for it.  None of the other major news services are carrying it.


The implications of this legal decision are profound and yet these "journalists" fail to see its importance?  The wheels of the entire mortgage system are falling off and no one seems to notice?  WTF? Damn, is it just me or is the world getting f*&kin' crazier by the minute?

Mon, 02/14/2011 - 17:49 | 961289 TruthInSunshine
TruthInSunshine's picture

I propose everyone on Zero Hedge refer to 'analysts' and 'journalists' as 'anal-cysts' and 'journal-cysts,' at all times going forward.

It reflects a far more accurate version of the Amerikan Reality we all find ourselves suffering through, today.

Thank you for your cooperation.

Mon, 02/14/2011 - 18:20 | 961407 Metropolis_Minx
Metropolis_Minx's picture

+100. 'Anal cysts'...Damn it, you made me crack a smile, on Zero Hedge, no less.

Mon, 02/14/2011 - 18:40 | 961519 waterhorse
waterhorse's picture

Very funny!  Thank you for the laugh.  I'm in a QT against MERS and the pretender-lenders and a good laugh is quite the stress reliever.

Mon, 02/14/2011 - 17:59 | 961334 system failure
system failure's picture

You would think that section of carpet would be tripping everyone up by now with all the shit they have swept under that mofo.

Mon, 02/14/2011 - 18:16 | 961394 Agent P
Agent P's picture

However, "Viagra Sales Climb as Men Plan Valentine's Day Romance: Chart of the Day" has been on BB TOP most of the afternoon.

Mon, 02/14/2011 - 18:58 | 961597 downrodeo
downrodeo's picture

but you're not really surprised are you?

By now, you understand that The implications of this legal decision are profound, and thus, you may conclude that None of the other major news services are carrying it.


If I sell widgets and run a newspaper, and widgets are found to cause cancer, do I print the story on page one?


Mon, 02/14/2011 - 19:51 | 961763 Bob
Bob's picture

Corporate media ftw!

Mon, 02/14/2011 - 19:15 | 961656 In Fed We Trust
In Fed We Trust's picture

Yet another reason why the president should declare the 'mortgage" itself as illegal.

If you live in a house, it is now yours, free and clear!

Now go get off you ass and campaign for Ron Paul.

Ron will put an end to the fed. But ne needs to do much more, like declare eveyones mortgage paid if full.

That's a good presential plateform to run from. It's almost like buying votes.

We re getting a new system either way you look at it. Might else well go all in for the people and take back what has been swindled away over the last 100 years.

Next people that decide to grow food in their yard will be paid with the new currency....

Many ways you can run with this. Just takes one man like Ron, he needs to be more confrontiona, in your face, like Ventura.

I think one bill like your house is yours, dude, otta fix the system.


Mon, 02/14/2011 - 22:31 | 962319 JLee2027
JLee2027's picture

Property rights are reserved to the States, not the Federal Government. Obama, can whine and stamp his feet all he wants but he's powerless here.

I agree with you, though, the states need to act in unison.

Tue, 02/15/2011 - 00:13 | 962576 TeMpTeK
TeMpTeK's picture

The Banks basically turned debt note instruments which were backed by real property and turned them into unsecured debt equivalent to credit card debt.. The real property has been severed from the note.. Chain of title broken.... The american people through Fannie and Freddie were sold Mortgage backed securities that are in fact NOT backed by any real property.... Its official now.. THE US Dollar is Toast.. America is Toast.....But at least My buddy will get his home free and clear after not paying his mortgage for the last 8 months.. There really is a Santa Claus afterall.

Mon, 02/14/2011 - 16:37 | 960873 chet
chet's picture


(Until Congress gives MERS retroactive authority to transfer mortgages.)

Mon, 02/14/2011 - 16:38 | 960886 Ragnarok
Ragnarok's picture

They don't even have to, because if you don't enforce a law does it really exist?

Mon, 02/14/2011 - 16:41 | 960907 Yikes
Yikes's picture

Your statement makes we want to puke because we all know the answer.

Mon, 02/14/2011 - 16:51 | 960959 Ragnarok
Ragnarok's picture

Rally-on my friend, rally-on.

Mon, 02/14/2011 - 18:02 | 961345 system failure
system failure's picture

They should have a adopt a banker program and bankers should invite the americans they have stripped everthing from to live with them. Bankers should have to work and take care of everything I need.

Mon, 02/14/2011 - 18:27 | 961436 Metropolis_Minx
Metropolis_Minx's picture

Although I think we have the same idea...I prefer the other R-word.
ReVoLuTiOn, my friend. ReVoLuTiOn.

Mon, 02/14/2011 - 16:51 | 960953 Michael
Michael's picture

Head for the Hollywood Hills.

Mon, 02/14/2011 - 17:37 | 961222 Milestones
Milestones's picture

United States Constitution Article I Section 9 (3) Attainder -ex post facto law. No bill of attainder or ex post facto law ( after the fact) shall be passed.  

Sorry, wrong number!! No can do.       Milestones

Mon, 02/14/2011 - 17:54 | 961318 fuu
fuu's picture

Ask Ohio how that little gem of a rule works out.

Mon, 02/14/2011 - 18:31 | 961454 mynhair
mynhair's picture

Hell, ask GM bondholders.

Mon, 02/14/2011 - 16:37 | 960879 Ragnarok
Ragnarok's picture

I thought we came to the conclusion months ago that the law no longer applies to Wall-Street.  Did I miss something?

Mon, 02/14/2011 - 16:40 | 960899 Misean
Misean's picture

No. The judges just haven't got the memo yet.

Mon, 02/14/2011 - 16:42 | 960912 Dr. No
Dr. No's picture

Precisely.  With Algos the predominant movers, "people" news does not impact how the algos price stocks.  Algos simply buy and sell on price and volume.  Once the Algos loose stability and the direction turns down, the pointers will shift to negative and Algos will go short.  It is beyond the influnce of people and or day-to-day news.  I realize it is unstable system, but I am unwilling to bet against it at this time.

Mon, 02/14/2011 - 18:46 | 961548 RECISION
RECISION's picture

As long as you don't take any of it seriously - it's all quite funny really.

Theatre of the absurd...

Mon, 02/14/2011 - 16:45 | 960929 Max Hunter
Max Hunter's picture

No... But every once in a while, we  like to jump up and down on good news even though the score is 42-0 and we just hit the 2 minute warning in the 4th quarter.. But hey, we just held them to a field goal attempt..  But.. they will probably fake the field goal and run it it.. LOL

Mon, 02/14/2011 - 18:47 | 961550 viahj
viahj's picture

more like they will throw the coach's challenge flag and dispute the spot and then the refs will re-spot the ball, re-measure for the first down and voila! ... first and 10, their drive continues.

Mon, 02/14/2011 - 19:30 | 961697 In Fed We Trust
In Fed We Trust's picture

Precisely. Ben BerNanke has been wrong about everything NOT because he is stupid!

He, and the fed have been swindling us for many years, and yet their biggest heist is just around the corner. Ben is an actor, and well versed economist.

His like Kevin Spacey in Usual Suspects. Mastmind criminal.

Ron Paul needs to tie Ben to a lie dector test if this shit is so important. It ain't goin happen.

As they race us of a cliff, they are have parachutes, and suitcases of cash, and will descent, unlike your desecnt, to the Cayman Islands,

and Glenn Beck will there scratching his head, blaming it budgets issues, the debt, the wars etc.

Criminal Negliegence is what Ben is guilty of if he is plan stupid. But he is actual plotting the death of the dollar. This is the mission, and it is predmedatative, and planned for years. >NWO

But Ben and Co wont be holding dollars. They will be holdings gold/oil and the mortgage to your house.

Have fun with that.



Mon, 02/14/2011 - 16:38 | 960880 Ancona
Ancona's picture

Well see. this will get buried and the MSM will never dare to entertain the idea of putting it before the public.

Mon, 02/14/2011 - 19:55 | 961776 Bob
Bob's picture

I've got four oz of silver to bet that Ratigan runs it tomorrow.

Mon, 02/14/2011 - 16:38 | 960881 unwashedmass
unwashedmass's picture


hope this guy doesn't ride in any small planes any time soon...

oops, forgot, the bankers are now favoring hit and runs a la andrew maguire.

Mon, 02/14/2011 - 16:38 | 960884 jus_lite_reading
jus_lite_reading's picture

Another one of Bernank's GREEN SHOOTS. This is good for BofA and the "markets"

Mon, 02/14/2011 - 16:38 | 960887 gwar5
gwar5's picture

Wow that's a set back for them though, for sure. So far they're not winning these battles.

But you're right, TD, once upon a time such a thing would cause a major move the markets.

Mon, 02/14/2011 - 16:38 | 960889 NOTW777
NOTW777's picture

excellent. always thot they simply dreamed up their own conveyance system w/o legal basis

Mon, 02/14/2011 - 16:39 | 960895 NOTW777
NOTW777's picture

now, do the same thing to obamacare and finreg

Mon, 02/14/2011 - 16:43 | 960924 Vergeltung
Vergeltung's picture


Mon, 02/14/2011 - 16:39 | 960896 Yikes
Yikes's picture

All rational people: "Ouch! That's going to hurt."

Ben "POMO" Bernanke:  "Hmm no, not really."

Mon, 02/14/2011 - 16:40 | 960903 Piranhanoia
Piranhanoia's picture

The only way yet to put money back in the people of this nations hands.

Mon, 02/14/2011 - 16:42 | 960904 HamyWanger
HamyWanger's picture

More doom news for pathetic permabears.

In the mean time, socks are reaching new highs.

I bet $1,000 that this story will be buried : just like the silver "manipulation" lawsuit, the "Fraudclosure" thing...

The global economy is recovering, and the attempts of permadoomers to deny it is frightening.

Mon, 02/14/2011 - 16:43 | 960920 TruthInSunshine
TruthInSunshine's picture

"... socks are reaching new highs..."

Gold, silver, wheat, copper, cotton, tungsten...and underwear, too!

Mon, 02/14/2011 - 16:51 | 960957 Hook Line and S...
Hook Line and Sphincter's picture

socks or eso si que es?

Mon, 02/14/2011 - 16:48 | 960941 williambanzai7
williambanzai7's picture

Mon, 02/14/2011 - 17:10 | 961070 LFMayor
LFMayor's picture

WBZ, is that Fatty Arbuckle: Woman Beater (on the right)?

Mon, 02/14/2011 - 17:28 | 961171 williambanzai7
williambanzai7's picture

Could be ;-)

Mon, 02/14/2011 - 19:02 | 961609 downrodeo
downrodeo's picture

if you tilt your head to the side, he looks a bit like bill clinton...

Mon, 02/14/2011 - 16:50 | 960949 duncecap rack
duncecap rack's picture

I'll say socks are reaching new highs. You've got them pulled right up over your eyes. You can't see a fucking thing.

Mon, 02/14/2011 - 17:12 | 961078 SubjectivObject
SubjectivObject's picture

Your moniker is apt, but you may not realize that.

Hammy is the parody of what you really dislike.

Mon, 02/14/2011 - 17:23 | 961145 duncecap rack
duncecap rack's picture

You're right. I read too quickly. I thought that was hamy's evil brother harry.

Mon, 02/14/2011 - 16:55 | 960991 lieutenantjohnchard
lieutenantjohnchard's picture

well, not all of us can be as smart, handsome and aesthetic as you dear little one. please regale us with how you caught the top in "socks" 08, then the bottom in 09, and now are riding the wave back up again.

then come back again tomorrow, and the next day, and the next day and remind us all time and again how wise you are, while the rest of us poor milksops lag your high standards of excellence.

Mon, 02/14/2011 - 18:27 | 961437 topcallingtroll
topcallingtroll's picture

Guys this is Hammy Wanger and you fell for it again!  He doesn't use the sarcasm button!

Mon, 02/14/2011 - 18:31 | 961457 slaughterer
slaughterer's picture

Where is the real Harry?  Aren't you going to denounce your false imposters for making a mockery of your world-view?

Mon, 02/14/2011 - 16:41 | 960905 BennyBoy
BennyBoy's picture

The banks own congress and they will pass laws making it OK for MERS to be a fraud.

Think FASB.

Mon, 02/14/2011 - 18:29 | 961442 Going Loco
Going Loco's picture

Why? Why would the banks or Congress bother? Why would they want to draw attention to some tin-pot little judgement that the majority of the American mortgage system has recently been based on fraud? This won't even be buried. It will just wither and die and be forgotten. The only thing that would make this have any effect would be if individual mortgagors, one-by-one, then by tens, then by hundreds, then in their thousands, sue individually. That might do the trick. People power. Congress is irrelevant. The only way you will ever defeat the banks is by suing them and winning, individually but en masse.

Mon, 02/14/2011 - 18:43 | 961534 waterhorse
waterhorse's picture

I agree.  That's exactly what I am doing.  I don't know that the power is with us little people though, but the investors are getting in on the game.  Big money vs. big money - should be interesting.

Mon, 02/14/2011 - 18:45 | 961537 Amabo Kcarab
Amabo Kcarab's picture

Why would congress bother?


Because the banks will be buried in years of litigation from every home owner past, present, and future whom is losing their home or on the cusp.

Real estate market dives even lower due to the clouded titles.

And wait till the shitbag hits the commercial market.

The bill is being drafted as we speak, and will be cloaked in some defense spending bill.


Mon, 02/14/2011 - 16:41 | 960908 TruthInSunshine
TruthInSunshine's picture

“An adverse ruling regarding MERS’s authority to assign mortgages or act on behalf of its member/lenders could have a significant impact on MERS and upon the lenders which do business with MERS throughout the United States,” Grossman wrote. “It is up to the legislative branch, if it chooses, to amend the current statutes to confer upon MERS the requisite authority to assign mortgages under its current business practices.”


And cue ObaMao & the Lackeys of Banks in that noble institution that is the U.S. Congress in....10....9....8....7....

Mon, 02/14/2011 - 16:44 | 960926 Misean
Misean's picture


Mon, 02/14/2011 - 18:00 | 961338 whatz that smell
whatz that smell's picture

10 Planks of The Communist Manifesto:

...1. Abolition of private property and the application of all rents of land to public purposes....

Mon, 02/14/2011 - 17:26 | 961154 MachoMan
MachoMan's picture

I can't fathom that this would allow retroactive application...  this is not a procedural rule...  and would clearly upset vested rights...  (although, vested rights tend to take a backseat to public policy).  All the judge said is that the legislators can change prospective assignments, but the law in place at the present does not allow them to do so...  good luck getting a mulligan out of this one... 

another instance of prospectively not a big deal, but retrospectively big uh oh.

Mon, 02/14/2011 - 18:10 | 961371 Dburn
Dburn's picture


Man, shit like this makes me go wacko. There is no doubt in my mind that somehow Mers will become institutionalized by making it a GSE which every mortgage has to pass through.

With a flick of that bankers pen, it will become law so foreclosures can be auto-filed online so law enforcement can get it's dispatch routes in the morning to make the most effective and productive use of the Human Home Ejectors much easier. With GPS and tracking software, computers will be able to match predicted productivity levels with actual levels to make auto adjustments in the algos for the next mornings dispatch.

Tens of Thousands of locust like little trucks will descend on America as home owners are thrown out on the street with 24 hours to remove their shit or it will be auctioned. They will repo autos and any other valuables to be held in escrow in case they need to be sold to recover costs of possession disposal. The autos then will become part of the banks assets fully restoring the deficiency between foreclosure sale and the performing loan it once was up to uh yesterday. As people scream, "how will we get our shit out if you have our cars", they will immediately get a dose of autoslime from the Home Ejector's crowd control weapons array.

Bear Talk: "Yes the good times are back, the country is on the move, deadbeats are on the streets while their homes are marked on bank's balance sheets. A Good day for bankers is a good day for America. H e e l l l Yes s s s s"

You may resume your talk about the glorious ascent of the stock called aapl

Mon, 02/14/2011 - 16:42 | 960919 pazmaker
pazmaker's picture

So what does this mean for people who see Mers listed on their note?

Mon, 02/14/2011 - 16:47 | 960940 Ragnarok
Ragnarok's picture

I could mean the owner of the house pre-200X ish may still be the owner of the home and all those payments the mortgage servicer collected from you were fraudulent. Plus a bunch of other stuff that I'm sure will piss you off.

Mon, 02/14/2011 - 16:54 | 960983 Dr. No
Dr. No's picture

Plus a bunch of other stuff that I'm sure will piss you off.


Excellent simlification so even I can understand it!  lol

Mon, 02/14/2011 - 20:02 | 961800 Bob
Bob's picture

Now that was just bad.  True, but bad.

Mon, 02/14/2011 - 16:51 | 960958 Amabo Kcarab
Amabo Kcarab's picture

It means quiet title action.


Free houses for everybody!


Mon, 02/14/2011 - 16:51 | 960960 beastie
beastie's picture

It means you have a broken chain of title. In short you can argue that they can come after you personally for the debt but not the house.

As most here have pointed out congress critters will change the rules to protect the bankers.


Mon, 02/14/2011 - 22:37 | 962341 JLee2027
JLee2027's picture

The banks probably won't survive to come after you. And who would pay them anyway? A percentage yes, but a small one I think. Then there is the issue of proving who actually holds the "note" to collect the now unsecured debt, many of which were lost or destroyed apparently intentionally to hide the fraud. And what if they have or had already been paid by sale or insurance...there is no damage to collect.

What a mess.

Mon, 02/14/2011 - 16:55 | 960989 Piranhanoia
Piranhanoia's picture

means time for you to check out quiet title actions in your state

Mon, 02/14/2011 - 18:34 | 961478 mynhair
mynhair's picture

You never see it.  That's the point.

Mon, 02/14/2011 - 20:03 | 961810 Bob
Bob's picture

Indeed.  Catch 22.  You'll have to still go to court.

Tue, 02/15/2011 - 00:23 | 962593 TeMpTeK
TeMpTeK's picture

"So what does this mean for people who see Mers listed on their note?"


Insert "la Bamba" cd and turn up speakers 100%

Mon, 02/14/2011 - 16:43 | 960922 irishlink
irishlink's picture

Next week some other democratic appointed judge rules against this ruling today. This is America and the banks and big money rules! No?

Mon, 02/14/2011 - 18:39 | 961502 Rainman
Rainman's picture

Next judge gets to deliver the sentence of small fines and handslaps for all. Have we seen this movie before ??

Mon, 02/14/2011 - 16:44 | 960925 velobabe
velobabe's picture

i would think that this would catch the public's eye and some lawyers. how can people not be outraged with the possiblity this ruling could be over turned. this country is home of the fools, not the brave†

Mon, 02/14/2011 - 17:53 | 961312 Milestones
Milestones's picture

See my post at the top. Article I Section 9 (3) of the U.S. Constitution: Attainder-ex post facto laws. No bill of attainder or ex post facto law (after the fact) shall be passed.

Congress will have to amend the Constitution via the people to change the law.  Milestones




that document. 

Mon, 02/14/2011 - 18:21 | 961411 topcallingtroll
topcallingtroll's picture

Not true milestones.  MERS can pull all the pleadings.  Wait for the law to change.  Then refile.  That is not ex post facto

Mon, 02/14/2011 - 20:50 | 961997 Milestones
Milestones's picture

How do you propose to change the dates on the I.O.U. note signed by the buyer and all the other papers in the trail?

It simply can't be done unless the homeowner goes back and gives the bank a new I.O.U. with a new date on it and reworks all the rest of the paperwork with new dates. Would have to be the largest village idiot in creation.

It would require retroactive action which is not allowable; even if it had to be done by the state as one person brought up.

Article I Section 10 Powers denied individual states. No state shall----pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts---.

I may be missing something as I am not an attorney, but as near as I can see, someone gonna have to do one hellva shake and bake to get around this thing if upheld on appeal.   Milestones

Mon, 02/14/2011 - 18:36 | 961487 mynhair
mynhair's picture

Don't have no stinkin Constitution - just ask ObaMao.

Day 14 of DeathCare ruled UC?

Mon, 02/14/2011 - 18:36 | 961492 puckles
puckles's picture

It has hardly stopped them in the past.  I seem to recall a good many ex post facto laws imposed by Congress, especially during the Clinton years, and in particular with respect to taxes.  It made tax planning impossible.

Mon, 02/14/2011 - 16:49 | 960942 irishlink
irishlink's picture

It is not bothering CITI ;just hiring more to expand in Europe

Mon, 02/14/2011 - 16:52 | 960956 jmc8888
jmc8888's picture

About fucking time. 

Welcome judges to 2005. Now I can finally show with proof the arguments I was making in bars way back then.  

It wasn't any less real then, just everybody was fucking clueless.  Finally, Cher grows up.

Both sides lackeys (and all other like sides) will be pushing hard to quell this.

Their best legal reason was pure SOPHISTRY....hey we have 50 percent of mortgages...therefore....YOU'RE STILL FULL OF SHIT.

Glass-Steagall, and the assholes can't use this legal reasoning as a reason to bail out everyone holding this now legally titled illegitimate crap.




Mon, 02/14/2011 - 18:50 | 961565 Boxed Merlot
Boxed Merlot's picture
Finally, Cher grows up.... "Cher's child transitioning from female to male"  Reported by CNN June 11, 2009.


Is this what's meant by retro active?


Mon, 02/14/2011 - 20:05 | 961817 jmc8888
jmc8888's picture

ROFL. No, it's backwardation.  :)

[but for all seriousness I couldn't care less what a person wants to think they are]

Though I meant it as 'clueless...Cher' as in alicia silverstone's dumbass 'valley girl' character mindset that most similarly had about the topic until relative recent times. It's not that the information wasn't out there, it's that people were unaware to look for it, and/or had reason to look the other way.  Basically mental sloth. 

When times are good, whole societies can be infected by it.  It did and we were/are.  Until Glass-Steagall.  But in this case, mers being shown to be illegitimate is just one of those 'spark of ingenuity' moments. 

Too bad the midget porn freaks at the SEC can't have a similar alcholic's 'moment of clarity' as well. We've all seen ZH and others hand things to them on a silver platter. 

I wonder how they'll try to neuter this.


Mon, 02/14/2011 - 16:55 | 960962 plocequ1
plocequ1's picture

Wow,  This  is my defense when my pesky in laws ask us why dont you buy a house.

Mon, 02/14/2011 - 16:52 | 960965 AZSovreign
AZSovreign's picture

Is this bearish for food stamps??

Mon, 02/14/2011 - 17:11 | 961076 papaswamp
papaswamp's picture

I'm sorry did you say something?...I was boobsmerized.

Mon, 02/14/2011 - 16:54 | 960978 butthead
butthead's picture

"The banks own congress and they will pass laws making it OK for MERS to be a fraud.

Think FASB."

Correct.  The only thing that this ruling accomplishes is to light a fire under the banksters and their political lap dogs to make it law retroactively.

Mon, 02/14/2011 - 16:55 | 960990 Forgiven
Forgiven's picture

I'd say a Bonzai photo with a mushroom cloud would be appropriate at this juncture!

Mon, 02/14/2011 - 17:00 | 961015 williambanzai7
williambanzai7's picture

Mon, 02/14/2011 - 17:29 | 961173 Cognitive Dissonance
Cognitive Dissonance's picture

Ponzinomics for Dummies.

Mon, 02/14/2011 - 17:37 | 961221 Misean
Misean's picture

Well, not sure they have anything to sell, except the servers. If they're dual processor and in 1U rack cases I might be interested, as long as they're fairly new.

Mon, 02/14/2011 - 18:24 | 961408 Hephasteus
Hephasteus's picture

Needs music. The FIAT Boys.

Also you forgot Snowbird specials available in Florida. LOL


Mon, 02/14/2011 - 20:22 | 961890 jmc8888
jmc8888's picture

Remember 85 percent off or 70 percent off AND Buy One, Get One FREE.  YOUR CHOICE!!!!

Enjoy your new homes still at an inflated value (after discount) and hold onto them for months, maybe years as the stream of court cases is sure to clog the court system up.

We won't even try to tell you it's really yours.  We'll just let you know that since we fucked up, you can have a full 95 percent confidence that you'll be able to stay in your home (err someone we defrauded) for years and before it comes, you'll be able to flip it back to someone else! It's YEARS!

Uncle Ben might even buy it back! At of course, your expense. (because to us this is legitimate debt that taxpayers must pay back into the monetary system)

No worries about Glass-Steagall or HBPA of 2007 here, we have stunningly accurate models that show this won't be a factor with 99.7% confidence.

Hurry, Hurry, Hurry....last chance to buy something with those dollars before zimbabwefication.

[disclaimer text size] Note: Not responsible for same houses trasnferred by us 1000x over to different parties, empty slabs, teenage squatters (you'll probably need some new copper btw), or anything else. We won't even give you back face value like Jerry Jones and the superbowl tickets. Your SOL. Caveat Emptor. [/disclaimer text size]


MERS: the standard of securitization YOU trust

Tue, 02/15/2011 - 13:55 | 964007 TeMpTeK
TeMpTeK's picture


Mon, 02/14/2011 - 20:29 | 961893 jmc8888
jmc8888's picture

reload page due to error = duplicate post

Mon, 02/14/2011 - 20:27 | 961903 jmc8888
jmc8888's picture

browser error

Mon, 02/14/2011 - 16:55 | 960993 DonnieD
DonnieD's picture

Since MERS transactions are illegal the banks will now try to do putbacks of their own to whoever owned these properties prior and get their money back. BTFD

Mon, 02/14/2011 - 17:00 | 961019 irishlink
irishlink's picture

The foreign banks will surely make a decisive move now. They are furious that they got caught holding this worthless paper.

Mon, 02/14/2011 - 17:01 | 961023 bob_dabolina
bob_dabolina's picture

Another victory for the bulls!

-Bob Pisani

Mon, 02/14/2011 - 17:03 | 961031 luk427
luk427's picture

The lawyers must be drooling.

Mon, 02/14/2011 - 17:08 | 961061 NOTW777
NOTW777's picture

maybe .00005% of plaintiffs trial bar; most lawyers still in shock that laws they thot they could rely on have been ignored the last few years

Mon, 02/14/2011 - 17:05 | 961041 redpill
redpill's picture

With that large of a potential obligation at stake, this will be made to go away.

Mon, 02/14/2011 - 18:14 | 961384 Millivanilli
Millivanilli's picture

Hey Red, they nuked you over at MW!

Mon, 02/14/2011 - 18:38 | 961497 mynhair
mynhair's picture

For the 100th time?  There's a prize for that....

Mon, 02/14/2011 - 17:08 | 961057 nwskii
nwskii's picture


im in the MERS system from a CountryWide Loan in 2008 which is now a BofA loan.Now they want me to refi ASAP. Anyone have any recommendations? 

Mon, 02/14/2011 - 17:12 | 961081 Misean
Misean's picture

Depends on the state, and talk to a GOOD RE lawyer. But from a purely business angle, you're in the driver's seat. They want to replace the bad paper with good paper. I'd ask them to show you the note for starters.

Mon, 02/14/2011 - 17:41 | 961247 MachoMan
MachoMan's picture


As a caveat, the biggest problem with taking a proactive stance with the banks is that all you're going to do is draw their attention to their transgressions and ensure they get their houses in order by the time it comes to trial.  All of the big ball busting cases in homeowners' favor have been for acts already committed...  frauds already perpetrated upon the courts...  assignments already happened...  I hate to tell you to wait it out and hope you win the lottery (or take matters into your own hands and default and press the issue), but you may not have much of a reasonable choice.

Remember, you look like an asshole to the court who is just trying to get out of paying a mortgage when you bring the action...  but when the bank brings the action and you're only trying to defend, then you're the little guy who needs help...  changes the entire dynamic...  and relative equities.

Mon, 02/14/2011 - 17:56 | 961323 Amabo Kcarab
Amabo Kcarab's picture


Mon, 02/14/2011 - 17:56 | 961325 unwashedmass
unwashedmass's picture


get a good lawyer and demand to see the note. its called "wet paper".

demand to see the wets. in most states, there are laws on the books that require this.

and if you get crap about that, ask to see the "chain" of the about 80% of the cases, you'll find fraud at some point -- overlapping dates, suspicious signatures, etc.

Mon, 02/14/2011 - 18:39 | 961510 Jendrzejczyk
Jendrzejczyk's picture

Wet ink....I think

Mon, 02/14/2011 - 18:34 | 961351 Sean7k
Sean7k's picture

Good advice, as usual. 

A little refi humor.


Mon, 02/14/2011 - 18:48 | 961554 waterhorse
waterhorse's picture

I agree with the first paragraph, about them trying to "get their house in order".  The problem is they will have to resort to forgery to do it.  The second paragraph, not so much; if he is current he could file an interpleader action with the court.  He would place his house payments in an escrow acct with the attorney or the court and the bankster could not penalize him (ding credit/late charges/junk fees) for it or foreclose until ruling made.  There's more on MERS junk at chinkinthearmor. 

Mon, 02/14/2011 - 19:27 | 961681 MachoMan
MachoMan's picture

No, they will not.  The issue of forgery only applies when they have sworn to the court that a certain chain of events has occurred and the plaintiff is truly vested with the power to foreclose.  However, if a foreclosure has yet to be implemented, then the bank can petition a court with all of the chain of title as parties to determine who the present owner of the note is.  Likewise, if the homeowner brings suit, the bank could simply third party in the chain of title and ask the court to determine which of them owns the mortgage...  then, after a determination has been made, the court will direct the plaintiff (homeowner) to pay the entity determined to be the owner and go back to his/her debt servitude/underwater palace.

The problem with the recent precedents is that the banks have become locked into their theories on the chain of title via sworn statements to the court...  if they would have been forthcoming with the court, then the result would have been different...

Think about it this way, if you are brining an offensive action as a homeowner, then your remedy sought is to make a determination as to who owns the mortgage of your property so that you can ensure that you are paying the correct party every month and that upon completion of your requirements, the release is made by the right institution and clear title vests in the subsequent owner.  Well, if you sue your servicer and instead of burring up, your servicer says, we don't know either, so we'll add banks X, Y, and Z, so that the court can determine the correct party and the homeowner can keep paying them...  kinda takes the wind out of your sails doesn't it?  All you do is get a precedent entered against you that you HAVE to pay X bank...  better to wait imo.  (and as I said in another thread, this is why foreclosure activity should decrease...  for the time being).

As for the second part, he is going to have to keep making payments to the registry of the court anyway during the pendency of the action...  this is a given...  whether he pays the servicer or he pays the court, either way, he keeps paying...  and, regardless of what the court decides, he's not going to get back the interpleader because the banks will have not yet committed a fraud upon the court.

While all the assignments and other documents are busy swimming in the ether, the parties are free to decide amongst themselves how to handle a foreclosure...  the problem is that the banks are too fucking stupid to do this...  they have to get hit with a few dozen or so cases (and a SCOTUS case) before the light bulb flashes.  The fact is, at this juncture, the banks aren't certain as to what they're going to do with the putbacks.  I think they're hoping most of the foreign CBs, et al, are just going to be happy stuffing the weenie...  and the GSEs keep what they have...  and the rest get crammed back up the originators' asses.  But, they're still in denial...  give it a little time.  They bought plenty of time with the AG decision...  but, in the end, they'll have to capitulate and cut a check to the dickfers that bought all this junk.  [still have questions as to how any person/entity with a fiduciary duty to taxpayers (or anyone else for that matter) could keep any of this on its books].  (that's rhetorical...  we all know that pecuniary gain and sweeping tacks under the rug is the name of the game).

Mon, 02/14/2011 - 20:33 | 961932 fallst
fallst's picture

Dont ask for the note!

Then you are tipping them off!

Play dumb, get a lawyer, and don't take any advice, except the above.

Mon, 02/14/2011 - 21:52 | 962177 Amabo Kcarab
Amabo Kcarab's picture


They will reject your request citing "legal authority".

Lawyer up.

Mon, 02/14/2011 - 17:22 | 961135 Ragnarok
Ragnarok's picture

You've got them by the short and curlies, ask to see the note!

Mon, 02/14/2011 - 17:24 | 961147 Fearless Rick
Fearless Rick's picture

Yeah, I recommend telling them:

a. Eat shit

b. piss up a rope

c. suck on it

d. all of the above, and DIE.

Stick it right up their behind. See my post below for details on my situation (2007 CW loan).

Mon, 02/14/2011 - 17:42 | 961251 nwskii
nwskii's picture

I have never been late on the loan, all payments are current, does that create a problem?

Mon, 02/14/2011 - 18:35 | 961480 Going Loco
Going Loco's picture

Yes. You are honest and frugal. You must be horribly punished for these misdemeanours..

Mon, 02/14/2011 - 23:10 | 962416 Blano
Blano's picture

Ha well said.

Mon, 02/14/2011 - 19:17 | 961660 reading
reading's picture

Not for you...

Mon, 02/14/2011 - 20:39 | 961958 jmc8888
jmc8888's picture

But is the correct party getting the money?

The answer is NO if your mortgage got securititzed.

Don't go against your conscience, just be prepared to realize that all that money sent to the wrong party was wasted. That every payment you make is to the wrong people.  This is the reality for every home owner paying a mortgage that was securitized. 

Who cares if a small percentage is trying to cheat at the game.  The game is 100 percent fraudulent by the makers of the game.  Thus anything involved during gameplay is beneath it.

The reality is that the sham continues until it doesn't, and none of us know exactly when it will change.  We are right, they are wrong, and while the law is finally coming around in bits and pieces, it isn't there yet.  Hopefully with this MERS realiziation by the courts, the fraudulent light will be shown.

At any time a big rat can bail from this ship, and start the domino.  If Ireland could break the Inter-Alpha Group, so can this x1000.

Will there be traction?

I guess it's sort of like the question of whether an old person needs adult diapers.




Mon, 02/14/2011 - 18:41 | 961518 mynhair
mynhair's picture

Go for 2%, or more, off the rate, no fees.  I got 2% off, no fees.

Mon, 02/14/2011 - 19:48 | 961756 In Fed We Trust
In Fed We Trust's picture

Stop paying. BofA is about to fold anyway, so why not gang up on them at not pay?



Tue, 02/15/2011 - 00:39 | 962609 TeMpTeK
TeMpTeK's picture

U need an attorney "who gets it"..You need to screen the attorney to make sure they understand that while a note still exists.. the note is no longer secured with the house. Quiet title as mentioned by someone else would be my next move..I would not be signing anything with the banks... They will appear very eager to work with you...that game is over for them.. its a last gasp for air...Free house with a little more work..educate yourself...


Mon, 02/14/2011 - 17:07 | 961058 TooBearish
TooBearish's picture

Banks break laws, when is that news?  thanks Ty!

Mon, 02/14/2011 - 17:10 | 961067 Convolved Man
Convolved Man's picture

There's no problem here.  Just integrate MERS with Facebook, allowing lenders to befriend MERS agents, and then mortgage records can be swapped among friends like personal information and salacious gossip.

Mon, 02/14/2011 - 18:21 | 961410 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

IPO in 3,2,1.

Mon, 02/14/2011 - 17:11 | 961073 Dr. Porkchop
Dr. Porkchop's picture

This concept of illegal vs. legal is a bararous relic. Don't you know this is the post industrial economy?

Mon, 02/14/2011 - 17:15 | 961100 Misean
Misean's picture

You mean you can't eat it? I suspect their are many here who would pay to watch the Banksters eat this...

Mon, 02/14/2011 - 18:41 | 961525 mynhair
mynhair's picture

Monica ate it....

Mon, 02/14/2011 - 17:15 | 961103 Josh Randall
Josh Randall's picture

The tide is turning my friends -- all because greed got in the way - Robosigner originally saving them nickels is now costing them millions

Mon, 02/14/2011 - 17:15 | 961106 Fearless Rick
Fearless Rick's picture

Having been involved in this MERS fiasco since July 2009, when my father died and I became estate administrator, I have to say that I am very, very fucking HAPPY with this ruling. The reason is that when my father died, he left a 3BR house with a MERS (via Cuntrywide) mortgage on it. I never made a single payment after examining the various frauds in the original mortgage documents.

Never in my wildest dreams, however, did I imagine that the entire mortgage would be ruled a complete fraud, especially right here in my home state of NY, where laws are laws and lawyers and judges uphold them.

I consider this to be TOTAL VICTORY and nothing less, for the following reasons.

1. BofA FKA Countrywide foreclosed in March 2010.

2. They have made no further motions.

3. MERS is listed as nominee on the original mortgage.

4. BofA has no standing to foreclose.

5. There's a fraudulent assignment from MERS to BofA dated AFTER the foreclosure action began, but predated to November 2009, and then dated again by the county clerk (3 diverse dates).

6. BofA - no standing; MERS - illegal. I could invoke right of recision to get back the 16K my father paid in mortgage payments, though I believe the bank has suffered enough (no need to provoke a wounded bear) by losing their security interest (the house).

7. Congress can do what it likes as far as changing the law, because they'll have to change the constitution to make it stick. No retroactive laws. I don't know the exact statute or citation, but I - and everyone else around here - know it is there, so even if congress does an end run, the result will be years of litigation which the bank doesn't want to entertain - shoot, they don't even have the guts to enter the courtroom prior to today, before this decision.

8. The fact that a NY judge has issued this ruling carries extra weight in NY.

Game over for BofA. They thought buying up Cuntrywide was a great idea (or they were coerced by Ben and Timmah) and are getting bitten in the ass for it, deservedly so. Anybody who has fought the banks and stuck it out should pop the champagne tonight because WE HAVE WON.

Rock on, fellow patriots, to MUSE - Uprising

They will not force us

They will stop degrading us

They will not control us

We will be victorious.

Mon, 02/14/2011 - 18:44 | 961536 mynhair
mynhair's picture

You've won until someone can produce a note and mortgage.....'scuse me, laughing my ass off on it; can't believe I posted such an impossibility...congrats!

Mon, 02/14/2011 - 18:55 | 961587 waterhorse
waterhorse's picture

Now that Doc-X is out of business, it might not be that easy.  I have heard they are producing "replacement paperwork" in India.  The burger-king robo signers here in the US of A couldn't do the job; I highly doubt India will do it better.

Tue, 02/15/2011 - 02:00 | 962733 StychoKiller
StychoKiller's picture

That effort will be the equivalent of trying to find an intelligent signal buried in the noise floor, by using white noise as a filter -- Gud luk wit dat!

Mon, 02/14/2011 - 21:58 | 962201 Fearless Rick
Fearless Rick's picture

And who might that "someone" be, and how would they prove standing?

Read the ruling and you might have a clue. The basis is that MERS cannot legally assign mortgages. Since they are the nominee on the mortgage, and allege they...


Wait a minute. I see your point. Thanks.

Mon, 02/14/2011 - 18:54 | 961583 Amabo Kcarab
Amabo Kcarab's picture

The mortgage and the note CANNOT be seperated.  Period.

Tell them to eat a bag of dicks!

Three little words.  Ouiet Title Filing.


Mon, 02/14/2011 - 22:29 | 962316 RexZeedog
RexZeedog's picture

You've won nothing. You'll eventually received a reasonable settlement offer, which if you do not accept, will be withdrawn when the banks finally get around to redocumenting every transaction - which they'll do. 

In any case, if Fannie or Freddie backed the loan, they'll eventually end up witht he property,  not you.

When they offer you a good dea, take it - but only if they warranty title.

A quitclaim deed won't suffice on this property any more.

Mon, 02/14/2011 - 17:17 | 961110 johnQpublic
johnQpublic's picture

to big to prosecute

Mon, 02/14/2011 - 17:22 | 961137 Janice
Janice's picture

About Time!

Mon, 02/14/2011 - 17:26 | 961156 Tuna Trader
Tuna Trader's picture

B of A: Bank of America Home loans this is Jamil how can I assist you?

Me: The last time I called and asked for you to provide me proof of ownership of my mortgage note and you gave me a MERS number.

B of A: Yes Mr. Tuna would you like to refinance with us today?

Me: Sure would!

B of A: How would you like 30 years fixed at 2.5 % with no money down and no closing costs?

Me: How about I stop making payments?

B of A: How does 0.25% sound?

Me: Send me the paperwork.

B of A: We'll get that in the mail today Mr. Tuna. Thank you for calling Bank of America Home loans.


Mon, 02/14/2011 - 17:27 | 961166 Big Ben
Big Ben's picture

This seems like a very important ruling. But I don't see it on any of the news sites that I typically monitor. Something seems fishy.

It seems that as long as most people continue to believe that banks have the right to foreclose, banks will be able to basically continue as if they really did.

Mon, 02/14/2011 - 17:29 | 961180 Fearless Rick
Fearless Rick's picture

Thank you, TD, for posting this. I had been busy with other matters today and this was the first chance I had to look at ZH. This article was at the very top of the page.

Great news. Outstanding news. Un-fucking-believable news.

Naturally, not news on CNBC, but wait till Kudlow gets wind of it. Could be some blowback. Kick the MF banks in the balls. They f---ed up this country, now it's their turn to eat SH-T. Sorry about my language, but these bastards bring out the worst, most vile, violent, harsh emotions in me.

Thank you Tyler and evryone at Zero Hedge.

We will be victorious!

Mon, 02/14/2011 - 17:32 | 961190 Bastiat
Bastiat's picture


Mon, 02/14/2011 - 20:13 | 961844 Bob
Bob's picture

Yes, eye on the prize. 

Do NOT follow this link or you will be banned from the site!