One Step Closer To The End: MERS Corporate Secretary Demoted

Tyler Durden's picture

MERS is finished. A month after CEO and President R.K. Arnold was the first rat to jump the
sinking fraudclosure enabling ship, the company's (and we use the term loosely - typically companies actually do stuff instead of just handing out $25 stamps) Corporate Secretary has Bill Hultman was just shown a purple slip, by being demoted to Senior Vice President. Although following earlier news that MERS is basically suspending its operations,
we are surprised that anyone pretends there is even a business model
behind the fraud. Per Bloomberg: "Merscorp Inc., operator of the
electronic mortgage-registration system under criticism by
consumer advocates amid a probe into lender foreclosure errors,
replaced Bill Hultman as its corporate secretary."


Merscorp has made a series of changes as courts debate what role it has, if any, in home foreclosures. Chief Executive Officer and President R.K. Arnold, who hired Hultman in 1998, retired last month. The company also is examining reforms, including a proposed rule change on the company’s website Feb. 16 that would stop members from foreclosing in its name.

“They’re trying to clean up their house,” said Christopher L. Peterson, a law professor at the University of Utah in Salt Lake City who has written law-review articles critical of the company. “I’m not sure Hultman was the problem. It seems to me the problem is the business model.”

Lejarde declined to comment on the reason for the change in Hultman’s role. A telephone message left for Hultman wasn’t immediately returned.

And here is a reminder why with the extinction of MERS, virtually all US mortgages will be null and void.

Merscorp’s Mortgage Electronic Registration Systems Inc.
contains more than half of all U.S. home mortgages. Members,
which include the nation’s largest banks, log changes on the
private database rather than filing mortgage assignments with
county records offices each time loans change hands.

But don't tell the ponzi market. After all just like everyone now claims they had no idea that Madoff was a ponz, so in a year or so, everyone will be stunned, stunned, that everything we see on CNBC each and every day was a pyramid scheme.

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Ragnarok's picture

Fantastic! Blow it up, I want a 3am call to Obama/Geithner.


OT: Gallup Finds U.S. Unemployment Up to 10.0% in Mid-February

covert's picture

that's just a wishful thinking kind of theroy. even though the logic is right, historically, it can't be. problems NEVER go away that easily.


The Limerick King's picture

No more MERS riches....bitchez!!!!

DB Cooper's picture

I sure hope we can stop the golden parachutes (or trade them for lead boots).

Amabo Kcarab's picture

Time to hand out the "Golden Showers".

The Disappointed's picture

I wouldn't piss on them if they were on fire.

malikai's picture

Kerosene/Jet-A has a golden tint to it.

glenlloyd's picture

not unless it's contaminated, besides, kero is much harder to ignite than gasoline and we wouldn't want any struggling or messing about while we try to light it.

Problem Is's picture

"kero is much harder to ignite than gasoline"

Kero = Jet Fuel
I dunno... Two jets full of kero took down 3 steel reinforced concrete sky scrapers once upon a time...

That kero was SO powerful it knocked down the 3rd building just by breathing fumes on it...

In case there was any  doubt:


Hephasteus's picture

Yep that kerosene is bad stuff. It's got british thermal units, american thermal units and a whole bunch of calories in it. I think it even has some joules left over.

Funny story though. This grocery store chain wharehouse burned down and the firemen though it was arson because the fire burned so hot. They thought it had to be using accelerants. LOL People don't know one Calorie in food is = 10 calories in heat. Which is why it takes so much fertilizer to grow it which takes so much natural gas to make.

In the middle ages people used to knock a hole in the castle. Stuff a pig corpse in it and set it on fire. It would mess up the jointing material and make it easy to knock the wall down.

New_Meat's picture

Heph, food calories are K-Cals (x 1,000)

- Ned

{I got stuck with engineering-units enforcement this afternoon ;-) }

{{ed.  Did you REALLY have to bring up the 'burn the pig' comment? eeewww}}

alien-IQ's picture

OT: WTF is going on with all these google audio ads here on ZH? I'm being bombarded every time I refresh the page. Loud as fuck and ANNOYING AS HELL!!!!!!!!!!

Amish Hacker's picture

Pyramids? I thought they were only in Egypt.

Antipodeus's picture

I'm pretty sure there's at least one in Las Vegas.  "What could possibly go wrong?"


beastie's picture

Make sure you log in to mersinc (if it's still alive) and grab a screenshot of whatever crap they have on file for your mortgage. You may need it in self defense.

My experience with it has been that the info on file changes every 6 months even if you haven't refied.

Nepenthe's picture

Agreed. Mine shows JPM as servicer through OneWest and DBS as MBS holder. None of which is filed at courthouse. If MERS goes away title chain is broken completely.

Someone is holding a big pile of shit...

Amabo Kcarab's picture

Some are only coming up by the MIN, not property address or search criteria.


BTW...MIN stands for mortgage identification number.

Quinvarius's picture

Mine says investor chooses not to reveal their identity.  I wonder what that means.

Amabo Kcarab's picture

Generally if the investor decides to not reveal their identity, you probably have and fannie/freddie backed loan.

beastie's picture

You can check on the Fannie or Freddie site to find out if you are with them.

But that means diddly squat as this time last year I was with Fannie now I'm with the demon Stanley.

It's all bullshit paper.

Anyway if you want to find out here is the process



Antipodeus's picture

+ x 26.5 for "the demon Stanley"!  LOL



Nepenthe's picture

BTW WTF is a MIN if it isn't filed @ the courthouse?

I've got plenty of made up #s in my head, can I play too?

beastie's picture

They are still alive. Go get those screenshots

kwvrad's picture

ok question here , What if you were forclosed on already and it turns out mers was involved, does anyone have recourse?

beastie's picture

Not lawyer but .....

There may be some remedies.

Did they advertize the sale properly?

Did they attempt a workout or fake out?

There are a few more angles but the bottom line is get a lawyer

MachoMan's picture

Yes.  You will need to file a motion with the court seeking to vacate the judgment against you or, alternatively, setting aside the foreclosure.  Generally speaking, you will need to allege a meritorious defense to set aside a judgment.  e.g. I paid that shit! I wasn't in default because I got an extension, they defaulted first, etc.  However, an exception lies when the judgment (or foreclosure) is void, generally on jurisdictional grounds, e.g. service/notice were not proper, but also because a fraud was committed on the court (not you, on the court...  if it was on you, you'll likely need to show a meritorious defense).  The analysis varies slightly, potentially, depending on how long it has been since the foreclosure.

Remember, your goal here is to extract money...  YOU DO NOT WANT YOUR UNDERWATER PIECE OF SHIT HOUSE BACK.  But, neither do they :).  Do not expect to get your  house back, just try and get as much settlement money out of those assholes as you can...  just be sure to deposit it in another institution ;).

PS, you need to contact a lawyer immediately.  (SoL issues aside, you may get screwed by numerous methods, including congress).

knukles's picture

Hey fuck all, there we go!
Bill Hultman, front and center of the whole mortgage scam, the financial debacle, indeed the whole bloody downfall of Capitalism, Free Enterprise, Truth, Justice and the American Way. 
Look up in the sky, it's a bird, a plane....
Send his ass off to Pelican Bay, that'll scare the piss out of Washington and Wall Street, clean the system up, allow us to get a new, fresh, fair, altruistic, one for all and all for one, clean as a whistle, neat as a pin, downright, down-home, Ma, apple pie, (strains of national anthem, F-16 flyover) cleaner than Caesar's Wife or whateverthefuck the saying is good old American start.

Glad that shits' over with.

Antipodeus's picture

++++ ... Damn, I wish we had a "F. Brilliant!" Button!  Tyler?  Hey, Tyler!



topcallingtroll's picture

Mortgage financing costs will be higher without a MERS type structure. 

When loans can be bought and sold easily (meaning they are highly liquid) this lowers the costs of mortgage financing.  Mortgage financing costs are going to go up anyway due to a number of reasons, but if banks have to hold these loans then they are going to charge higher interest rates. 

We need a non-fraudulent secondary market like MERS if we are going to provide the liquidity to keep the mortgage market as efficient and low cost as possible.

Bastiat's picture

"We need a non-fraudulent secondary market like MERS"


We needed a non-fraudulent financial sector. 

beastie's picture

I know you are just trolling and loving it so I won't junk you.

topcallingtroll's picture

 If there isn't an easy way to buy and sell loans on a secondary market then financing costs will be higher.   Highly liquid markets have lower transaction costs. 

This isn't rocket science.  I know there are a lot of people celebrating the end of MERS however we need some kind of MERS-like market to provide liquidity.

spinone's picture

MERS facilitates securitization, and securitization is dead.  The government is now the buyer for M-BS.

Yes_Questions's picture

 If there isn't an easy way to buy and sell loans on a secondary market then financing costs will be higher.

Not True, investors will pay more for an actual AAA-Grade security, properly escalating the price on the correct buyer.  Besides, this will be on more factor needed to bring the price of real estate where it belongs..

Fearless Rick's picture

Ding, ding, ding! We have a winner!

Without a "facilitator" (otherwise known as some shithead in a suit who cranks out interest and fees on your sorry ass) such as MERS, securitization and fraud banks, home prices will fall to where they belong, or, something resembling affordability.

Back in the halcyon days of the mid-70s, I was a real estate agent. Made a good buck in a variety of ways. Houses were sold in all manner of ways. People who were F&C and in good shape often held mortgages themselves when they sold with 20% down payments.

When we get back to PITI = 25% of take home, then real estate prices will be where they ought to be. It shouldn't be a 30-year commitment, just as cars should not be financed over 7 years.

A person making $50k a year should be paying $650-700 a month for housing, meaning with 20K down, that person should be able to pay out a 15 year mortgage on a 100K home for under $800/mo

Now, let's get realistic. In the economy we're in, a couple is lucky to have both working full time, so let's take a couple bringing in $40K, with a kid, a car, etc. First, let them save $16K for the DP, then, they should be able to handle a $500/month nut over 20 years without sweating too hard.

It's what America used to be about.

Rick64's picture

 This poses another problem. We will need non-fraudulent ratings agencies.

Amabo Kcarab's picture

Geithner...Is that you?

Wow I didn't realize you posted on ZH.

topcallingtroll's picture

An illiquidity premium will be a component of your interest rate without a functioning secondary market.  I agree MERS did not follow the law. 

Don't blow my cover!

Rick64's picture

 Non fraudulent would mean registering all the mortgages at the respective county clerks office and fees being paid to them, the whole idea of MERS was to avoid this. If they are required to follow the law and pay these fees then these costs will be passed on to the consumer. So what would the advantage be of having MERS? In what sense are they a neccessary secondary market?

steelhead23's picture

Dear Troll, precisely how does the ease of secondary transactions help the original morgagee?  I might agree that by facilitating secondary transactions, MERS facilitates more rapid bank recovery of its funds, accelerating the process, but I do not see how this helps the original borrower.  Yes, banks may wish to charge more if the securitization process is forced to be slower, but mortgage interest rates are constrained by the demand for borrowing and if the spread gets too high, people won't buy or they'll find other financing.  We already have a "non-fraudulent" system of mortgage transfer - the county clerks.  

viahj's picture

don't know why this was junked, it's 100% accurate.

without MERS (may they rot in hell for being sloppy and skirting state laws) securitization of mortgage pools will be more difficult and there will be less liquidity on the secondary market (whether it's a private market or the FNMA/FHLMC disaster we have now) thus costs will rise and hence your mortgage rate will also.  this will kill off what's left of the housing industry and we can surmise what effect that will reverberate throughout the rest of the flailing economy.

alien-IQ's picture

you are just begging for a bitch slapping.

Rotwang's picture

Land patents:Allodial title:Filing for record:Recording:MERS


Matt SF's picture

What's really scary... checkout the number of foreclosure legal notices without the words "Mortgage Electronic Registration, Inc.".

Spoiler: it takes a while to find one.

Zero Govt's picture

The bent journos at Bloomberg are completely misrepresenting and grossly understating the REAL issue with MERS by stating, : "..under criticism by consumer advocates amid a probe into lender foreclosure errors."

The BIG issue with MERS is that it was DELIBERATELY set up by The Parasite Club to USURP STATE LAW as well as national Law. 

We're not talking about paperwork errors we're talking the lawless anarchistic above-the-law fraudsters of Wall Street (shares in MERS), Fanny and Freddie (both owning shares in MERS) and the wilfull deliberate shove it under the rug corrupt politicians of Washington DC. All 3 Parties in crime broke and pissed over State and national Law in the process.

Bloomberg once again prove to be a laughing stock of spineless crony journalists, great for the 'integrity' of your brand, well done arsewipes