Leaked Seattle Audit Concludes Many Mortgage Documents Are Void

Great job David Dayen!

A Seattle housing activist on Wednesday uploaded an explosive land-record audit that the local City Council had been sitting on, revealing its far-reaching conclusion: that all assignments of mortgages the auditors studied are void.

That makes any foreclosures in the city based on these documents illegal and unenforceable, and makes the King County recording offices where the documents are located a massive crime scene.

The problems stem from the Mortgage Electronic Registration Systems(MERS), an entity banks created so they could transfer mortgages privately, saving them billions of dollars in transfer fees to public recording offices. In Washington state, MERS’ practices were found illegal by the State Supreme Court in 2012. But MERS continued those practices with only cosmetic changes, the audit found.

That finding has national implications. Every state has its own mortgage laws, and some of the audit’s conclusions may not necessarily apply elsewhere. But it shows how MERS reacted to being caught defrauding the public by trying to sneak through foreclosures anyway. Combined with evidence in other parts of the country, like the failure to register out-of-state business trusts in Montana, it suggests that the mortgage industry has been inattentive to and dismissive of state foreclosure laws.

Read on.

4 responses to “Leaked Seattle Audit Concludes Many Mortgage Documents Are Void

  1. Reblogged this on Deadly Clear and commented:
    God Bless – share with the 50 states of America – while they still exist. Thank you corrupt judges and legislatures… And the joke’s on you – there are no pension and retirement funds… No, really… They are gone, forever gambled away and nothing, nothing, you delusional idiots can do to bring them back. Get real… See the Sucker Punch on DeadlyClear. And if that’s not enough attend a pension fund meeting and/or request copies of all (your) state investments of pension and retirement funds. Yeah, demand a copy of what your state is trying desperately to protect – that doesn’t really exist! Got a problem with that? Then prove to every citizen and government employee that their pension funds exist, in whole, and are not at risk.

  2. HOW WHO WILL BE A STRONG LAWYER TO TAKE ON THIS MATTER IN ALL STATES, AS A CLASS ACTION????????????????

  3. The BS Has Been going on in VARIOUS Forms for Decades even CENTURIES ……. It’s FACT …… Realty Frauds take many shapes NOT just the Current RICO REALTY RACKET …….. http://www.bing.com/search?q=Land+Fraud+Bank+Looting++S%26L++Scandal&qs=n&form=QBLH&pq=land+fraud+bank+looting+s%26l+scandal&sc=8-0&sp=-1&sk=&cvid=0ac02ff191fc43ba97af2aff5baa2385

  4. The THREE Rs ……. RICO REALTY RACKET ……… It’s a VERY OLD GAME ……… The BS Has Been going on in VARIOUS Forms for Decades even CENTURIES ……. It’s FACT …… Realty Frauds take many shapes NOT just the Current RICO REALTY RACKET …….. http://www.bing.com/search?q=Land+Fraud+Bank+Looting++S%26L++Scandal&qs=n&form=QBLH&pq=land+fraud+bank+looting+s%26l+scandal&sc=8-0&sp=-1&sk=&cvid=0ac02ff191fc43ba97af2aff5baa2385

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