Has A MERShole Opened Up?

[AllentownJake]

Many judges, including some Florida, have held repeatedly that despite the lack of an actual chain of assignments and often despite a lack of actual "wet signatures" on an original promissory note they will evict people from their homes regardless! You have to wonder how many of those judges have been bought, bribed or cajoled by banking interests, given that the purpose of a Judge is to do just that - judge - not write law. If the legislature says you need an unbroken chain of assignments and an original document for it to be enforceable, then it does.

But in other states banks have run into a problem - judges, rather tired of the "fast and loose" way banks have played with the law for the last decade, have put their foot down and actually done their job - that is, they have judged the facts and enforced the law as written.

In those locales MERS has run into trouble.

The underlying issue is that many of these so-called "securities" (MBS, CDOs, etc) were issued "light" of the required legal mandates to keep the chain of assignments and actual consent signatures required for enforcement. Many people charge that the reason behind this was simple volume. I disagree.

I believe that a large part of the root cause of these "lost" documents is to cover up blatant and in many cases outrageous fraud. It is difficult to prove that a bank or other lender knew and ignored stated-income fraud (or allegedly "investigated" and "underwrote" a file when it did not) when the original file has been turned into ticker-tape confetti courtesy of the closest paper shredder!

MERS has thus given cover to a tremendous amount of fraudulent conduct - the very conduct that predatory lending statutes, "wet signature" and "chain of title" laws are supposed to prevent.

More at the Link

http://market-ticker.denninger.net/archives/1454-Has-A-MERShole-Opened-Up.html