To follow up my post yesterday, Rep. Alan Grayson (D, FL) posted a video today echoing the major impact of recent MERS [Mortgage Electronic Registration System] court rulings and suits. He explains in detail and with examples the racket that is the foreclosure industry, calling it a “factory of fraud.” The implications of the discovery by the courts of all this rampant fraud are just starting to dawn on the industry and the public. I anticipate there’s much more to come.
Key points from the video:
- 97% of loans originated from 2005-2008 are in the MERS system.
- On a widespread and pervasive basis, MERS did not take the steps necessary to own the note … which means that in 45 out of 50 states, MERS lacks the legal right to foreclose.
- Because they don’t have real standing, they created a system where servicers hire foreclosure mills whose business is to forge documents.
- Brazenly flaunting the law, Lenders Processing Services company has systematized the fraud: lawyers request from LPS the affidavits they need. LPS has document mills that can magically make an authorized president of whoever you need and send you back the backdated signed documents saying you have the right to foreclose.
What are the 5 states where MERS is allowed to foreclose?
Good question, Beverly. At the moment, there’s a lot of legal wrangling going on about this, as you can imagine. I’ll see if I can find out which states Rep. Grayson is talking about.
JP Morgan today [edit: it was Wednesday] announced they were halting foreclosures in 23 states — that’s 56,000 foreclosures.
from Rep Grayson’s announcement: http://grayson.house.gov/News/DocumentSingle.aspx?DocumentID=209643
GRAYSON APPLAUDS JP MORGAN’S SUSPENSION OF 56,000 FORECLOSURES
Prompted by pressure from Congressman, JP Morgan agrees to keep foreclosure fraud victims in their homes
JP Morgan announced Wednesday that it will suspend 56,000 foreclosures cases nationwide, after revelations that significant document fraud problems may exist. The company acknowledged that some employees may have signed off on documents without proper review.
Thanks, I am going to be quite proactive in finding out about this issue and passing the word along… Many frienda and acquaintances have been affected by this fiasco…
Thanks a bunch!
Terrific, Beverly! I added a post today that has many other articles linked — that should help. I haven’t been able yet to pin down which states Grayson was referring to … if you find out first, let me know. Thank you for commenting!