Sat Mar 23, 2024 11:33 pm by globalturbo
Michelle Conlin ~ State Court Ruling Deals Blow To U.S. Bank Mortgage System
Posted on September 23, 2012 by Gillian
Reuters | September 14 2012
(Reuters) – The highest court in the state of Washington recently
ruled that a company that has foreclosed on millions of mortgages
nationwide can be sued for fraud, a decision that could cause a new
round of trouble for the nation’s banks.
The ruling is one of the first to allow consumers to seek damages
from Mortgage Electronic Registration Systems, a company set up by the
nation’s major banks, if they can prove they were harmed.
Legal experts said last month’s decision from the Washington Supreme
Court could become a precedent for courts in other states. The case also
endorsed the view of other state courts that MERS does not have the
legal authority to foreclose on a home.
“This is a body blow,” said consumer law attorney Ira Rheingold.
“Ultimately the MERS business model cannot work and should not work and
needs to be changed.”
Banks set up MERS in the 1990s to help speed the process of packaging
loans into mortgage-backed bonds by easing the process of transferring
mortgages from one party to another. But ever since the housing crash,
MERS has been besieged by litigation from state attorneys general, local
government officials and homeowners who have challenged the company’s
authority to pursue foreclosure actions.
A spokeswoman for MERS said the company is confident its role in the financial system will withstand legal challenges.
Continue reading @ Reuters
Related articles
Posted on September 23, 2012 by Gillian
Reuters | September 14 2012
(Reuters) – The highest court in the state of Washington recently
ruled that a company that has foreclosed on millions of mortgages
nationwide can be sued for fraud, a decision that could cause a new
round of trouble for the nation’s banks.
The ruling is one of the first to allow consumers to seek damages
from Mortgage Electronic Registration Systems, a company set up by the
nation’s major banks, if they can prove they were harmed.
Legal experts said last month’s decision from the Washington Supreme
Court could become a precedent for courts in other states. The case also
endorsed the view of other state courts that MERS does not have the
legal authority to foreclose on a home.
“This is a body blow,” said consumer law attorney Ira Rheingold.
“Ultimately the MERS business model cannot work and should not work and
needs to be changed.”
Banks set up MERS in the 1990s to help speed the process of packaging
loans into mortgage-backed bonds by easing the process of transferring
mortgages from one party to another. But ever since the housing crash,
MERS has been besieged by litigation from state attorneys general, local
government officials and homeowners who have challenged the company’s
authority to pursue foreclosure actions.
A spokeswoman for MERS said the company is confident its role in the financial system will withstand legal challenges.
Continue reading @ Reuters
Related articles
- Washington State Supreme Court: MERS May Not Foreclose Unless They Hold the Note (seattlebubble.com)
- General Conspiracies – Re: State court ruling deals blow to U.S. bank mortgage syst (disclose.tv)
- Oregon Court of Appeals rules against banks, MERS in foreclosure case (oregonlive.com)'
