2009-09-22 — denninger.net
Ellen Brown penned an article over at HuffPo that sounds much more definitive than it really is, yet outlines a potential major problem for the secutized loan industry: In Landmark National Bank v. Kesler, 2009 Kan. LEXIS 834, the Kansas Supreme Court held that a nominee company called MERS has no right or standing to bring an action for foreclosure. Well, kinda. The entire decision is found here and isn't quite as represented in that article. Nonetheless, it is significant.
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ronin at 01:36 2009-09-23 said:
In most states, foreclosure takes place in the county courthouse, which usually also houses the Recorder's office. In the pre-MERS days, the Recorder's office got fat on fees from recording Assignments every time a mortgage changed hands on the secondary market. MERS ended all that, and the only thing that kept the "shifting winds" from hitting the fan was the refi boom - the Recorder got enough fees, and busywork, from recording all of the new loans that the lost revenue from Assignments didn't irritate most counties (with notable exceptions like Cook County, Illinois). Now that recording revenue is down, and staff was hired to take care of the refi boom, the monsters are waking up. You don't want to lay people off from County government, since they are the political faithful. The banks are throwing people's mortgages around like so much trash, and don't want to pay the Recorder a measly $30 to record the Assignments that allow responsible people to keep track? I hope this issue has some long, strong legs. Permalinkadd a comment | go to forum thread
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