MERS stands for Mortgage Electronic Registration Service... sounds like a document storage house, right? Nope. If you have taken a mortgage, refinance or 2nd mortgage between 1996-2010, chances are your mortgage is one of the 60 MILLION plus registered as a securitized instrument with MERS and sold as an investment. It appears legally the Mortgages and the Notes cannot be separated or sold as securities (and that's just one issue). Below is an abstract from an academic review of MERS and the effect on our economy (

At the roots of the
worst recession since the Great Depression were unaffordable home mortgages
packaged into securities, sold to investors, and used as capital assets by
financial institutions. The process of securitization, as well as financial
institution over-leveraging associated with it, has been well documented and
explored. However, there is one company that was a party to more questionable
loans and foreclosures than any other and yet has received virtually no
attention in the academic literature. Mortgage Electronic Registration Systems,
Inc., commonly referred to as “MERS,” is the recorded owner of over half of the
nation’s residential mortgages. MERS operates a computer database designed to
track servicing and ownership rights of mortgage loans anywhere in the
States. But, it also acts as a proxy for the
real parties in interest in county land title records. Most importantly, MERS is
also filing foreclosure lawsuits on behalf of financiers against hundreds of
thousands of American families. This Article explores the legal and public
policy foundations of this odd, but extremely powerful, company that is so
attached to America’s financial destiny. It
begins with a brief explanation of the origins of the county real property
recording systems and the law governing real property liens. Then, it explains
how MERS works, why mortgage bankers created the company, and what MERS has done
to transform the underlying assumptions of state real property recording law.
Next, it explores controversial doctrinal issues confronting MERS and the
companies that have relied on it, including (1) whether MERS actually has
standing to bring foreclosure actions; (2) whether MERS should be considered a
debt collector under the federal Fair Debt Collection Practices Act; and (3)
whether loans recorded in MERS’ name should have priority in various collateral
competitions under state law and the federal bankruptcy code. The article
culminates in a discussion of MERS’ culpability in fostering the mortgage
foreclosure crisis and what the long term effects of privatized land title
records will have on our public information infrastructure. The Article
concludes by considers whether the mortgage banking industry, in creating and
embracing MERS, has subverted the democratic governance of the nation’s real
property recording system.

Here are a few videos on
the MERS subject in case you haven't seen them.



We need to get the word out - because unless MERS is stopped, not only will thousands of families lose their homes - foreign investors could end up owning the banks since there is so much alleged fraud.. Here are my thoughts (for
what its worth):

Restoring American Financial Stability Act of
2010 aka “Wall Street Reform Bill.” HR 4173: Section 9306 - Directs the HUD
Secretary to study and report to
Congress on: (1) the root causes of home loan defaults and foreclosures,
including the role of escrow accounts in helping prime and nonprime borrowers to
avoid defaults and foreclosures; and (2) the role of computer registries of mortgages, including
those used for trading mortgage loans.

We need to immediately
place a moratorium on foreclosures (Hilary was right)... There are several attorneys across the country that
would like to "help" HUD document
their "study" for Congress. We need
to get Congress to take an immediate action... because by this Sec. 9306
alone... somebody understands MERS ... no one else other than MERS is doing more
than 60 million computer registries of

Immediately Congress should take
action to:

    enough lawsuits to justify this

GOALS - due to the bank fraud and predatory lending - a
penalty in lieu of being sued for anti-trust, fraud and

  1. All primary loans made between 1996 - 2010 are mandated to be
    reduced to 2% for 30 years;
  2. Loans must be of market value - or reduced to meet market
    value: a) Government financed and approved appraiser value based on current
    market sales, and; b) judicial review and
    approval of appraised value;
  3. All 2nd mortgages stripped due to
    predatory lending practices (stripped/removed - we do this in bankruptcy for
    Ch. 13);
  4. All back payments and penalties, attorneys fees and costs
    forgiven / removed;
  5. Any MERS registered mortgage -
    mandated to only a judicial foreclosure procedure - specifically, NO
    non-judicial foreclosure process
    If you've read this far and want more information - let us know - email:


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