The signs have been piling-up for more than a year at of which point. Mortgage foreclosures have careened out-of-control.
The chief question in courts of law is usually: who owns the subject property, along with can they prove of which by producing a mortgage note? Increasingly, the respective answers are: “Don’t know” along with “No.”
A federal bankruptcy judge in Long Island ruled just last week of which MERS could not act as the “agent” of the mortgage note owner. Judge Robert Grossman acknowledged in a case called In re: Agard, of which MERS may be involved with up to 50% of all home foreclosures nationwide, along with of which his decision may negatively affect the mortgage industry (i.e. accelerate its demise), however his decision required of which the process comply with federal along with state bankruptcy laws.
Many MERS-held “notes” will either not materialize, or will not pass muster relative to the many networks of applicable legal standards.
The Iowa Attorney General recently announced progress, along with different state attorneys general, in conjunction with the newly established Consumer Financial Protection Bureau, to overhaul the process of how the nation’s largest banks conduct the foreclosure process. The group essentially is usually a nation-wide focus group of state law enforcement officers along with bureaucrats tasked to generate a list of best-practices they can mold into national standards.
In Florida, attorney along with foreclosure-giant, David Stern, under investigation by the Florida Attorney General, just announced of which his law firm is usually suspending foreclosure operations.
In Utah last month, a local judge made national headlines by allowing a judgment debtor to rip-up his mortgage note in open court along with literally walk away by his home, debt-free, because the lender could not prove ownership by producing a mortgage note.
All of which has the board of directors of the Virginia-based MERS Corporation very nervous. MERS is usually a private mortgage registry database of which has essentially replaced our nation’s tradition of publicly stored land ownership records. MERS’ CEO, R.K. Arnold, among the founders of the corporation, jumped ship in January.
As the foreclosure meltdown has unfolded over the past 24-months, many mortgage lenders’ practices of cutting corners inside lending process, along with creating some rather huge mistakes, have come to light. of which has had the effect of creating of which difficult, along with in some cases impossible, to actually prove who owns a particular home.
The early challenges by county officials inside 1990s to the MERS system of high-speed along with cheap securitization went unnoticed in favor of the mortgage lending industry. As the MERS system of speed collateralization took off, of which developed a process of instant deputization, where thousands of loan officers received “certifying resolutions” in minutes via the Internet. These financial deputies or, in some cases “agents”, were authorized to process mortgage transfers along with foreclosures on behalf of MERS.
All Great things usually come to an end; sometimes a bitter end. at of which point, the judges in all the various courts are tipped off; along with bankruptcy judge Grossman’s decision may go federally viral.
Where will of which all lead? Will the state attorneys general, through a completely new layer of bureaucracy, be able to arrest the process along with introduce effective reform? Or will judges, case-by-case, reluctantly pull the threads of which will undo our nation’s mortgage lending system?
Only time will tell, so stay tuned on of which one.
inside meantime, if you are experiencing mortgage payment difficulties in Oakland County, the Oakland County Treasurer has partnered with GreenPath Debt Solutions, the United Way along with others to establish the Oakland County Foreclosure Prevention Initiative. Simply click on of which link or call (888) 350-0900 for assistance with the eviction process or to speak using a certified housing counselor.
Does the MERS Corporation Own Your Home?