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New York’s U.S. Bankruptcy Court Rules MERS’s Business Model Is Illegal | Huffington Post

By L Randall Wray

United States Bankruptcy Judge Robert Grossman has ruled that MERS’s business practices are unlawful. He explicitly acknowledged that this ruling sets a precedent that has far-reaching implications for half of the mortgages in this country. MERS is dead. The banks are in big trouble. And all foreclosures should be stopped immediately while the legislative branch comes up with a solution.

For some weeks I have been arguing that MERS is perpetrating foreclosure fraud all across the nation. Its business model makes it impossible to legally foreclose on any mortgaged property registered within its system — which includes half of the outstanding mortgages in the US. MERS was a fraud from day one, whose purpose was to evade property recording fees and to subvert five centuries of property law. Its chickens have come home to roost.

Wall Street wanted to transform America’s housing sector into the world’s biggest casino and needed to undermine property rights to make it easier to run the scam. The payoffs were bigger for lenders who could induce homeowners to take mortgages they could not possibly afford. The mortgages were packaged into securities sold-on to patsy investors who were defrauded by the “reps and warranties” falsely certifying the securities as backed by top grade loans. In fact the securities were not backed by mortgages, and in any case the mortgages were sure to go bad. Given that homeowners would default, the Wall Street banks that serviced the mortgages needed a foreclosure steamroller to quickly and cheaply throw families out of the homes so that they could be resold to serve as purported collateral for yet more gambling bets. MERS — the industry’s creation — stepped up to the plate to facilitate the fraud. The judge has ruled that its practices are illegal. MERS and the banks lose; investors and homeowners win.

Here’s MERS’s business model in brief. Real estate property sales and mortgages are supposed to be recorded in local recording offices, with fees paid. With the rise of securitization, each mortgage might be sold a dozen times before it came to rest as the collateral behind a mortgage backed security (MBS), and each of those sales would need to be recorded. MERS was created to bypass public recording; it would be listed in the county records as the “mortgagee of record” and the “nominee” of the holder of mortgage. Members of MERS could then transfer the mortgage from one to another without all the trouble of changing the local records, simply by (voluntarily) recording transactions on MERS’s registry.

A mortgage has two parts, the “note” and the “security” (not to be confused with the MBS) or “deed of trust” that is usually just called the “mortgage”. The idea behind MERS was that the “note” would be transferred from seller to purchaser, but the “mortgage” would be held by MERS. In fact, MERS recommended that the “note” be held by the mortgage servicer to facilitate foreclosures, but in practice it seems that the notes were often lost or destroyed (which is why all those Burger King Kids were hired to Robo-sign “lost note affidavits”).

At each transfer, the note and mortgage are supposed to be “assigned” to the new owner; MERS claimed that because it was the “mortgagee of record” and the “nominee” of both parties to every transaction, there was no need to assign the “mortgage” until foreclosure. And it argued that since the old adage is that the “mortgage follows the note” and that both parties intended to assign the notes (even if they did not get around to doing it), then the Bankruptcy Court should rule that the assignments did take place in some sort of “virtual reality” so that there is a clear chain of title that allows the servicers to foreclose.

The Judge rejected every aspect of MERS’s argument. The Court rejected the claim that MERS could be both holder of the mortgage as well as nominee of the “true” owner. It also found that “mortgagee of record” is a vague term that does not give one legal standing as mortgagee. Hence, at best, MERS is only a nominee. It rejected MERS’s claim that as nominee it can assign notes or mortgages — a nominee has limited rights and those most certainly do not include the right to transfer ownership unless there is specific written instruction to do so. In scarcely veiled anger, the Judge wrote:

“According to MERS, the principal/agent relationship among itself and its members is created by the MERS rules of membership and terms and conditions, as well as the Mortgage itself. However, none of the documents expressly creates an agency relationship or even mentions the word “agency.” MERS would have this Court cobble together the documents and draw inferences from the words contained in those documents.” Read more…

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9th Circuit Court rules visitors to national forest don’t have to pay a fee | Pasadena Star News

By Steve Scauzillo

In a decision that could bring an end to the national Adventure Pass program, the U.S. 9th Circuit Court of Appeals ruled that the U.S. Forest Service cannot charge for hiking, walking, picnicking or visiting undeveloped areas of national forest land.

In the unanimous ruling released Feb. 9 in favor of four hikers who objected to paying a fee to visit the forest, Judge Robert Gettleman wrote: “Everyone is entitled to enter national forests without paying a cent.”

The case involved four plaintiffs who objected to paying a fee to the U.S. Forest Service for visiting Mount Lemmon within the Coronado National Forest in Arizona. The court reversed a district court ruling, saying the federal authorities violated the 2004 Federal Lands Recreation Enhancement Act (FLREA).

While it remained unclear Wednesday if the ruling spells the end of the Adventure Pass program in the nearby Angeles National Forest, local activists and others involved in the long-standing battle against the fee program say it will be very difficult to charge folks who enter the sprawling forest, which forms the northern border of the San Gabriel Valley. Under the fee program, it costs $5 a day or $30 annually to enter many parts of the forest.

“This is the best news I have heard in years,” said Bob Bartsch, 72, of Pasadena. Bartsch, who still hikes the 10-mile roundtrip up to Henninger Flats and back, has been fighting the Adventure Pass program since it began in 1997.

“I don’t have anything officially on that at this time,” said Sherry Rollman, spokesperson for the U.S. Forest Service in Arcadia. “It happened in another state and we haven’t assessed it yet.”

The strongly worded, 15-page decision says any member of the public who walks, hikes, rides a horse, picnics on the side of a road, camps at undeveloped sites, even parks in a national forest “without using facilities and services” is allowed to do so without being charged. Charging a fee, such as the Adventure Pass, even for someone who visits an area with amenities but doesn’t use them, violates the FLREA, according to the decision. Read more…

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New York Sues 3 Big Banks Over Mortgage Database | Reuters

Attorney General Eric T. Schneiderman of New York sued three major banks on Friday, accusing them of fraud in their use of an electronic mortgage database that he said resulted in deceptive and illegal practices, including false documents in foreclosure proceedings.

Mr. Schneiderman, co-chairman of a new mortgage crisis unit under President Obama, filed a lawsuit against Bank of America, Wells Fargo and JPMorgan Chase in New York State Supreme Court in Brooklyn.

The database, called the Mortgage Electronic Registration System or MERS, was created in the mid-1990s for tracking mortgage ownership. It is a collaboration of top mortgage servicers, mortgage insurers and Fannie Mae and Freddie Mac, the government entities that hold many of the country’s mortgages.

“The mortgage industry created MERS to allow financial institutions to evade county recording fees, avoid the need to publicly record mortgage transfers and facilitate the rapid sale and securitization of mortgages en masse,” Mr. Schneiderman said.

“By creating this bizarre and complex end-around of the traditional public recording system,” Mr. Schneiderman’s lawsuit asserts, the banks saved $2 billion in recording fees.

More than 70 million mortgage loans, including millions of subprime loans, have been registered in the MERS system, rather than in local county clerks’ offices, according to the lawsuit.

The lawsuit asserts the database is inaccurate and seeks to stop the banks from filing foreclosure actions through MERS and executing false or defective mortgage assignments in New York foreclosure proceedings.

Mr. Schneiderman also is seeking all profits obtained through fraudulent and deceptive practices and other damages, including $5,000 for each violation of general business law.

Patrick Linehan, a JPMorgan spokesman, and Rick Simon, a Bank of America spokesman, declined to comment on the lawsuit. Ancel Martinez, a Wells Fargo spokesman, said the company was reviewing the lawsuit and did not have “anything to add at this time.” Janis L. Smith, a spokeswoman for Merscorp and its subsidiary, MERS, said in a statement that the firms complied with the law and mortgage regulations.

“Federal and state courts around the country have repeatedly upheld the MERS business model, and the validity of MERS as legal mortgagee and nominee for lenders,” the MERS statement said. “We refute the attorney general’s claims and will defend the case vigorously in court.”

Source: New York Times/Reuters

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Lost in Translation: An Important Note for International Reckoners | The Daily Reckoning

Buenos Aires, Argentina – If you’re planning a vacation to the United States of America in the foreseeable future, you would do well to refrain from employing any confusing colloquialisms in your social media updates prior to departure.

For Australians, that means no “cracking onto” members of the opposite sex…no getting “off one’s face”…no “tearing it up”…no “little rippers” and, we would think, no “barrakking” for anyone.

Our Irish friends will likewise wish to steer clear of referring to anything as “the gas,” from declaring intentions to “eat one’s head off” and from “throwing shapes,” “sucking diesel” or otherwise “effin’ and blindin’.”

We can only imagine to what extent our English Reckoners shall have to curb their delightfully colorful lingo to ensure a stateside journey (even relatively) free of let or hindrance at the gate, though we imagine no measure of self-censorship will be sufficient to guarantee a transit experience free of at least a touch of “Ye ol’ Liberty Grope.”

What’s all this caper then, eh? What’s the apple, the score, the bleedin’ apple core?

Apologies for the loose linguistics, weary reader. But a point begs its making; a point two British (would-be) tourists, Leigh Van Bryan and Emily Bunting, discovered the hard way just last week.

Apparently rather chuffed at the upcoming prospect of a wee jaunt over the pond, Van Bryan and Bunting engaged in a bit of online banter before their big trip to the US. Mistake number one. The two were perhaps unaware that the Department of Homeland Security routinely trolls the global social media digital waves, setting up accounts to listen in on prospective threats to…um…the “Homeland.”

We can only imagine the hysterical frenzy that whipped around the DHS H.Q. when they discovered what Van Bryan, 26, had posted.

“Free this week for a quick gossip/prep before I go and destroy America x”

Not that it should matter, but “destroy” is popular English slang for “party”…an easily Googlable fact, one would think, for the highly skilled heroes manning the control tower at the Twitter and Facebook Counter Terrorism and Special Operations Unit for Liberty and Freedom of the Homeland… Patriot… Liberty… uh, never mind.

After making their way through passport control at Los Angeles International Airport (LAX) last week, the pair were promptly detained by armed guards/heroes/patriots. But the real trouble was still to come.

The two were then informed that the DHS was on to their scheme to “destroy” (read: party in) America and (Could it be? No! Sweet Mother of Mercy!) their sick and twisted plot to dig up the grave of Marilyn Monroe!

“3 weeks today, we’re totally in LA p****** people off on Hollywood Blvd and diggin’ Marilyn Monroe up!”

The pair explained that the tweet, which the DHS had considered a grave matter of national security was, actually, a reference from Family Guy, a popular television show produced in the Homeland itself…behind patriot lines!

“They asked why we wanted to destroy America and we tried to explain it meant to get trashed and party,” explained Bunting. “I almost burst out laughing when they asked me if I was going to be Leigh’s lookout while he dug up Marilyn Monroe. I couldn’t believe it because it was a quote from the comedy Family Guy which is an American show.”

Department of Homeland Security staff, brave unwavering professionals as they are, were not deterred from their mission.

“It got even more ridiculous because the officials searched our suitcases and said they were looking for spades and shovels. They did a full body search on me too” explained Bunting.

Perhaps because grave-robbing spades and shovels have little to do with (most people’s idea of) partying, the DHS were unable to find any in the pair’s luggage or, strangely enough, on their person. Nevertheless, this was no time to take chances:

“I kept saying to them they had got the wrong meaning from my tweet but they just told me ‘you’ve really f***** up with that tweet boy’.”

Van Bryan, apparently thought to be the leader of the non-existent operation, was then cuffed, thrown in a cage inside a van and whisked away to a location where he could not be of harm to Homeland citizens. Read more…

Source: The Daily Reckoning

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World Banker Makes Stunning Confession

Two years ago, the former President of the World Bank, James Wolfensohn, makes stunning confessions as he addresses graduate students at Stanford University. He reveals the inside hand of the world domination from past, to the present, and into the future. The speech was made January 11th, 2010. The next 19 minutes may open your mind to a very deliberate world.

He tells the grad students what’s coming, a “tectonic shift” in wealth from the west to the east. But he doesn’t tell the students that it is his institution, the World Bank, that’s directing and channeling these changes.

Wolfensohn’s own investment firm is in China, poised to profit from this “imminent shift” in global wealth.

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The 2012 Prophecy: Making it Real | 13Moon.com

By Eden Sky

“The accurate content of the message for the Maya Prophecy for our times is that the date of December 21, 2012 is nothing more than a general marker, a specific date that infact indicates a whole era, an era of hope, an era of opportunity – the opportunity to re-establish a sense of community amongst all humans of this planet…” -From The Maya Taino Prophecy Initiative, led by Maya Elder Antonio Aj Ik and Taino Elder Miguel Sague – www.mayatainoprophecy.webs.com

December 21, 2012 marks the Shifting of World Ages, a return to zero point, where we officially transition from the current 5,125 year World Age Cycle, and enter into a New World Cycle; marking a new level of our unfoldment as a planetary collective; a new level of our human evolution in concert with our living Universe.

If one researches prophecies from ancient cultures, and investigates modern scientific and spiritual decodings of these times we are living in, one will find a whole spectrum of insight, opinions, warnings, facts, theories, and possibilities about where we have come from, and where we are heading. While many pieces of the puzzle match up, plenty of pieces and voices do not align, and in fact contradict one another.

I write this article as someone who has been in this field of investigation and discovery for 17 years and counting, having passionately delved into this realm and taken in information and insights from countless sources. In this personal journey, my intention has been to be informed of various viewpoints, especially those thought to be from the most reputable sources, including indigenous messengers, highly regarded researchers, deeply inspired visionaries, and critically thinking scientists. Upon taking in all of these viewpoints, I then seek to integrate them inside of myself, cross-referencing all the data and voices and applying the discernment of my own intelligence and intuition, that ultimately I can arrive at a synthesis of my own heart’s comprehension. It is from this place of what I would call my own “embodiment” that I always attempt to communicate to the world from.

I believe it is ideal for each of us to evolve and refine our own personal embodiment of truth, awareness, and inspiration to guide us from within and to help influence our collective humanity. Therefore, I do not proclaim to know anything more than anyone else. I am simply interested in sharing the understandings I have come to as they have cultivated within me during years of dedicated exploration, in hopes that they may stimulate deeper levels of your own knowing.

That said, the message I wish to offer to the human family is this:

Let us realize that December 21, 2012 does indeed mark the completion of a vast cycle, and the dawning of a New World Age on Planet Earth. However, let us not naively look to this one day to instantly transform all the far-reaching crises and imbalances we face as a global society.

The World Age we are soon transiting out of has spanned over 5000 years, taking us to this unprecedented point we are now living in on Planet Earth where our world hangs in the balance, teetering between breakdown and breakthrough. December 21, 2012 is a threshold point; a doorway indicated by the Ancient Maya well over a thousand years ago, that will take us into a new domain as a planetary collective. The more of us that are conscious and aware of the significance of this date as a marker of a new World cycle, the more aligned we can be in our intentions and actions to serve as instruments of this transition process, fortifying and inspiring each other upon this unfolding journey of Shifting World Ages.

Solstice 2012 marks a zero point -a simultaneous completion and beginning, called “Creation Day” by the Ancient Maya. From that point, the adventure will continue onward, bringing untold challenges and blessings. As we advance to a new level on the spiral of Time, let us comprehend the vastness of our journey ahead. Each day the mystery deepens, bringing new trials and new awarenesses. There is no pre-determined outcome to our collective story. The essential message of the 2012 Prophecy is that the more we each awaken to our personal contribution to this planetary moment, the greater the possibilities emerge for positive change.

Everyone asks “What’s going to happen on December 21, 2012?”

Our human psyche has fixated on this one date, projecting both tremendous fear and tremendous hope. But rather than looking at these monumental times of prophecy from a linear mindset, let us realize that beyond this one infamous date, it is happening now, all around us, and also inside our own selves. As Peter Russell writes: “Rather than a precise date on which major changes happen, I see 2012 as the temporal epicenter of a cultural earthquake.”

It is not wise to expect some external, earth-shattering cataclysm or miracle to happen on this one day that proves the reality of this Living Prophecy.

The clarity that December 21, 2012 marks the launching point of a new epoch is not based on proclaiming details of external events. Rather, the opportunity is for as many people as possible to align internally with this understanding, and therefore from an inner alignment of cycles shifting, to help consciously generate and incarnate the dawning of the new era on Earth. Let us contemplate: What can happen in our collective consciousness when each of us really owns the power of our personal contribution to our shared reality? Read more…

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Johnny Liberty’s “Vision for a New America” (videos) | YouTube

Here’s a series of videos from a recent lecture “Vision for a New America” in Austin, Texas…covering a five-point agenda including: 1) reclaiming personal sovereignty and internal authority over your life; 2) demanding accountability in government and limiting local, state and federal government to no more than 10% of GNP; 3) restoring a sound, debt-free monetary system; 4) building a renewable energy infrastructure; and 5) building a global network of community-based resource centers.

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Nevada Makes Illegal Foreclosures Felony | Housing Predictor

By Mike Colpitts

Responding to homeowner complaints, Nevada has become the first state in the nation to make illegally repossessing a home a felony, and  may send bankers to jail for doing such. The new law was enacted after tens of thousands of homeowners complained to lawmakers about their homes being foreclosed without proof of ownership.

The outcry of consumer complaints over illegal robo-signing tactics has produced a series of lawsuits against mortgage servicing companies and banks in Nevada, which has led the U.S. in foreclosures six straight years.

The Nevada law makes it a felony for a mortgage servicer or trustee of a mortgage to make false representations concerning a title such as claiming that they are an executive of a bank or mortgage servicer, which was the case in at least hundreds of thousands, perhaps millions of robo-signings. A $5,000 fine will also be assessed if fraud is found. The law requires mortgage companies to provide a new affidavit with the amount owed on the loan, the person who is in possession of the note and the individual with the authority to foreclose on the property.

Some 26 U.S. states conduct foreclosures through the courts, but the new law does not make Nevada a judicial foreclosure state. Foreclosures have been delayed in many cases since the law went into effect Oct. 1 st.

Cathe Cole, vice president of default for Trustee Corps., and foreclosure counsel in Nevada for Freddie Mac said as long as trustees can show a clear chain of title, including the named servicer of the mortgage there would be nothing for companies carrying out foreclosures to fear. “They just want to make sure we’re doing things correctly,” said Cole.

Nevada’s state attorney general is attempting to halt illegal foreclosure practices such as robo-signing with the new law, which they believe are still taking place. Proof of ownership title is critical to the chain of title. If the proof has been lost or never forwarded to a mortgage servicing company the foreclosing party may have no right to formally foreclose and take the real estate.

The Nevada law could provide an example for other states to follow implementing the new law. Homeowners throughout the U.S. have filed lawsuits against mortgage servicing companies alleging fraud in foreclosure proceedings used to formally repossess their homes after Mortgage Electronic Registration Systems (MERS) reportedly failed to provide the physical documents on foreclosures their electronic system was used for to provide foreclosures through. MERS ordered mortgage servicers and banks to halt foreclosures in its name earlier this year.

Source: Housing Predictor