Saturday, April 19, 2014
RE RE DK POST AND MORTGAGE BACKED SECURITIES LEGALITIES WIKIPEDIA
"One critical component of the securitization system in the US market is the Mortgage Electronic Registration Systems (MERS) created in 1990s, which created a private system wherein underlying mortgages were assigned and reassigned outside of the traditional county-level recording process. The legitimacy and overall accuracy of this alternative recording system have faced serious challenges with the onset of the mortgage crisis: as the US courts flood with foreclosure cases, the inadequacies of the MERS model are being exposed, and both local and federal governments have begun to take action through suits of their own and the refusal (in some jurisdictions) of the courts to recognize the legal authority of MERS assignments.[53] The assignment of mortgage (deed of trust) and note (obligation to pay the debt) paperwork outside of the traditional US county courts (and without recordation fee payment) is subject to legal challenge. Legal inconsistencies in MERS originally appeared trivial, but they may reflect dysfunctionality in the entire US mortgage securitization industry."
"....Legal inconsistencies in MERS originally appeared trivial, but they may reflect dysfunctionality in the entire US mortgage securitization industry."
For whom could such matters ever have originally appeared trivial?
For whom could use of MERS ever have appeared legal in any state?
It is hard to believe that these matters might ever have appeared trivial to knowledgeable real estate or business transactions lawyers, in any state.
Who advised Wall Street banks regarding MBS' legality ?
I suspect the advice was "Don't do it," but of course lawyers do not run these, or most any, companies.
Reference from an old post found on Krugman's blog in 2010:
http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/
"....Legal inconsistencies in MERS originally appeared trivial, but they may reflect dysfunctionality in the entire US mortgage securitization industry."
For whom could such matters ever have originally appeared trivial?
For whom could use of MERS ever have appeared legal in any state?
It is hard to believe that these matters might ever have appeared trivial to knowledgeable real estate or business transactions lawyers, in any state.
Who advised Wall Street banks regarding MBS' legality ?
I suspect the advice was "Don't do it," but of course lawyers do not run these, or most any, companies.
Reference from an old post found on Krugman's blog in 2010:
http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/
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