Merscorp Lacks Right to Transfer Mortgages, Judge Says (MERS Ruling:"does not comply with the law")

[kpete]

Source: Bloomberg

Merscorp Lacks Right to Transfer Mortgages, Judge Says
By Thom Weidlich - Feb 14, 2011 12:02 PM PT


Merscorp Inc., operator of the electronic-registration system that contains about half of all U.S. home mortgages, has no right to transfer the mortgages under its membership rules, a judge said.

U.S. Bankruptcy Judge Robert E. Grossman in Central Islip, New York, in a decision he said he knew would have a “significant impact,” wrote that the membership rules of the company’s Mortgage Electronic Registration Systems, or MERS, don’t make it an agent of the banks that own the mortgages.

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“‘Don’t come around here no more,’ is basically the message to MERS,” said April Charney, a senior attorney with Jacksonville Area Legal Aid in Jacksonville, Florida. “The judge basically deconstructed MERS and said there’s no possible way in any case you can come in and show you have this appropriate proper status to transfer the note.”

“MERS and its partners made the decision to create and operate under a business model that was designed in large part to avoid the requirements of the traditional mortgage-recording process,” Grossman wrote. “The court does not accept the argument that because MERS may be involved with 50 percent of all residential mortgages in the country, that is reason enough for this court to turn a blind eye to the fact that this process does not comply with the law.”

Read more: http://www.bloomberg.com/news/2011-02-14/merscorp-has-no-right-to-transfer-mortgages-u-s-judge-says.html

[notesdev]

1. Not really breaking news

the ruling was on Feb 10th

Quick summary on MERS - it was an attempt by the banking cartel to replace the county recording of titles to land ownership with a private system to a) avoid recording fees, and b) facilitate fraud. Bottom line is that they've thrown half the houses in the country into a situation where nobody can prove they legally have title to the land.

[Raven]

2. Having been a conveyancer for many years and having a great

deal of respect for the integrity of a land conveyancing system that is as old as this Country, and older, my faith is restored that this judge respected the law and did the right thing. I am just wondering about all the attorneys who obviously looked the other way.

[dipsydoodle]

3. Sounds like

they were trying the old "custom and practice" scam.

Guess there's just something about the word "tough" that MERS & Co. can't quite grasp.