Mortgage Electronic Registration System’s Role in Electronic Fraud

The mortgage electronic registration system (MERS) was created by the real estate financing industry. It was designed to “eliminate the need to prepare and record assignments when trading residential and commercial mortgage loans.”

Before MERS, it was the old fashion paper record. You could actually go to the clerk’s office and track, by hand, the purchase and sale of residential and commercial mortgage loans.MERS System Bankruptcy

Instead, MERS was designed to keep track of when mortgage notes were bought, sold and packaged in securities. But, guess what, MERS never did the proper paper work for it to allow participating companies to appoint signers for documents or to legally sign the required transfer paper work. That means that there is defective paper work and when a bank or company tries to foreclose, they have to show the proper paper work.

To compound this error, there were robo-signings by mortgage holders and mortgage holders law firms where signers admitted that they signed hundreds of files a day without personally verifying the correctness of the figures, which is required by law.

This is just part of the overall greed in the real estate and banking market. Mortgage originators were eager to collect fees and less concerned with making sure that paper work was correct. Banks and financial institutions also wanted to take those mortgages, bundle them into securities and sell them. They weren’t concerned that the paperwork was done properly before the securities were issued.

As a result, mortgages were never properly securitized and transferred.

It does not take much difficulty to find fraudulent and deficient paper work. Here in Florida, Attorney General Pam Bundy has started 11 investigations, including one against a law firm.

Nationwide, all 50 state attorney generals are negotiating with banks and other mortgage financers for a settlement of the problems caused by this illegal foreclosure paperwork.

Seems clear that fraud foreclosure is rampid throughout the United States.

You can learn more about your rights if you are facing foreclosure by contacting Sunshine State Bankruptcy today at 727.258.499. Bankruptcy may be an option for you.

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