The Death Of MERS

Military foreclosures
Military foreclosures

by Mike Harris


At long last, it appears that the USA is still a country of laws and not a country of big banks and corporations.

A New York Federal Bankruptcy Judge named Grossman has finally ruled that the illegal scheme called MERS, that has defrauded both homeowners and large investors is nothing more than a scheme developed by bankers and mortgage brokers to also bilk the county recorders out of the fees due at title transfer.

MERS is the method the bankers preferred to quickly and illegally to evict millions of homeowners from their homes. In the process MERS allowed the Banks to separate the note from the security. This allowed the securitization and bundling of millions of home loans into trade able securities. The only problem is that the MERS process destroyed the chain of title. Now 50% of the real estate in the USA does not have a clear title to determine who actually owns the real estate and who owns the note. The net result is the notes for the home loans are worthless paper.

The Banks no longer have legal standing to evict any one from their home. That is the good news, the bad news is that no one now can prove they have a clear title. So who owns these homes and other real estate?? That is still unclear.

For the time being possession is 90% of the law and people with MERS homes and other MERS real estate, may need to resort to the concept of adverse possession and live on the property for the required time (which varies by state) until clear title can be issued by the state or county to the party which occupies the property.

Many people will be able to remain in their homes, but for those currently buying a home, the buyers must make sure that the bank will post a bond and insure clear title to the home before you sign any financial instruments. If not the home buyer risks not having a clear title to the home they are purchasing.

The downside for the banks is that they must now down grade their balance sheets to reflect that the financial instruments are defective, and write off trillions of dollars. The good news for many homeowners is they cannot be evicted.

The ruling by Judge Grossman is precedent setting and it restores the rule of law into the mortgage industry. The aftermath of these illegal practices of the banks and lenders may take decades to rectify. The other aggrieved parties are the institutional investors, pension funds, mutual funds who were also defrauded with these worthless securities. The banks will be forced to make them whole and refund 100% of their investments, please keep in mind that these funds belong to the American workers who earned the pensions by investing their savings in these funds for decades.

This may be the end of the too big to fail banks and I welcome their demise. They have abused the process, everyone and everything associated with mortgage lending for the past decade and longer. It is time to use the concept of the “Clawback” to strip the banks of their ill gotten assets and the bankers who have been personally enriched at the expense of everyone else.  No more obscene bonuses for the fat cats on Wall Street this Holiday Season!! The bankers should be forced to return all salary and bonus money they have been paid for the past decades, they should not benefit in any manner from the economic damage they have inflicted upon so many people.

It is time for the bankers to give up their yachts, private jets, numerous vacation homes and all the trappings of excessive wealth they have fraudulently gained at the expense of the American people. The banks should be liquidated to rectify this wrong; it is time to let the legitimate free market decide the outcomes of this economic disaster.

The real test will come with the power of the bankers in the Congress of the USA. If the Congress agrees to retro-actively legalize fraud, then we know the bankers are still in control. If not we will see active implementation of the law by every law enforcement body in the country, starting with the County Sheriff right up to the SEC and the DOJ. If we fail to see law enforcement embrace this ruling, this will confirm the depth of corruption in the USA. This is a bell weather moment in America, I look forward to the best possible outcome to the benefit of the American people, the homeowners and the institutional investors who were all defrauded by the bankers. Let Justice prevail!! Let the bankers, Hedge fund managers et al, be sentenced to a re-education camp, picking beets for the next 100 years. We can send the illegal aliens home; the bankers can pick the vegetables from now on.

The Marine Corp has a saying: “We don’t have problems, we have opportunities” this is true in this situation. America has the opportunity to completely reform our dysfunctional financial system from the ground up. Let us take full advantage of this once in a lifetime golden opportunity to it’s fullest extent. This is the best chance we will ever get to remake the financial model and the entire banking system of the country, this time for the benefit of the American people.


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