January 20, 2011
The issue under discussion here is MERS (Mortgage Electronic Registration System).
MERS, set up by the government in 1995, now claims to be a privately-held company and their official function is stated to be "keeping track of a confidential electronic registry of mortgages and the modifications to servicing rights and ownership of the loans." MERS is actually a U.S. government initiated organization like Fannie Mae and Freddy Mac and its current shareholders include AIG, Fannie Mae, Freddie Mac, WaMu, CitiMortgage, Countrywide, GMAC, Guaranty Bank, and Merrill Lynch. All of these entities have been intimately, and disastrously, involved with the so-called 'housing bubble,' and were quickly bailed out by the supportive Bush administration.
In addition to its publicly stated purpose of simplifying mortgage registration, MERS was also set up to assist in the creation of so-called 'Collateralized Debt Obligations' (CDOs) and 'Structured Investment Vehicles' (SIV). The CDOs are a type of structured asset-backed security whose value and payments are derived from a portfolio of fixed-income underlying assets. CDOs securities are split into different risk classes, or tranches, which permit these entities to be minced into tiny tranches and sold off by the big investment banks to pensions, foreign investors and retail investors, who in turn have discounted and resold them over and over.
It is well known inside the American banking institutions that these highly questionable, potentially unsafe investment packages were deliberately marketed to countries, such as China and Saudi Arabia, that are not in favor with elements of the American government and banking industry and were, and are, marketed with full knowledge of their fragility.
The basic problem with this MERS system that while it does organize the mortgage market, it also knowingly permits fiscal sausage-making whereby a huge number of American domestic and business mortgages, (59 million by conservative estimate) are sliced up, put into the aforesaid 'investment packages' and sold to customers both domestic and foreign.
This results in the frightening fact that the holders of the mortgages, so chopped and packed, cannot be identified by MERS or anyone else, at any time or by any agency. This means that any property holder, be they a domestic home owner or a business owner, is paying their monthly fees for property they can never own. Because of the diversity of the packaging, it is totally and completely impossible to ascertain what person or organization owns a specific mortgage and as a result, a clear title to MERS-controlled property is impossible to get at any time, even if a mortgage is fully paid. No person or entity, has been, or never can be, identified who can come forward and legally release the lien on the property once the loan is paid.
In short, MERS conceals this fact from the public with the not-unreasonable assumption that by the time the owner of the home or business discovers that they have only been paying rent on property they can never get a clear title to, all the primary parties: the banks, the government agencies, the mortgage companies, and the title companies, will be dead and gone. MERS is set up to guarantee this fact but, gradually, little by little, mostly by word of mouth, the public is beginning to realize that their American dream of owning a house is nothing but a sham and a delusion.
The solution to this is quite simple. If a home or business American mortgage payer goes to the property offices in their county and looks at their registered property, they can clearly see if MERS is the purported holder of the mortgage. This is fraudulent - MERS has never advanced any funds in the transaction and owns nothing. It is merely a registry. If MERS is the listed holder, the mortgage payers will never, ever, get clear title to their property.
In this case, the property occupier has two choices: They can either turn the matter over to a real estate attorney or simply continue pouring good money after bad. And is there relief? Indeed there is. In case after case (95% by record) if the matter is brought to the attention of a court of law, Federal or state, the courts rule that if the actual owner of the mortgage cannot be located after a reasonable period of time, the owner receives a clear title from the court and does not need to make any further payments to an unidentified creditor! It will stop any MERS based foreclosure mid process and further, any person who was fraudulently foreclosed by MERS, which never held their mortgage and forced them from their home, can sue MERS and, through The Courts, regain their lost homes...