excerpted from the news release
REFERRAL OF CHASE HOME MORTGAGE AND MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. TO FEDERAL PROSECUTOR:
Secretary of State Jennifer Brunner, in two letters dated Aug. 11, 2010 and Sept. 1, 2010, referred matters of alleged notary abuse in thousands of home mortgage foreclosures by Chase Home Mortgage and the Mortgage Electronic Registration Systems, Inc. to U.S. District Attorney Steven Dettelbach in Cleveland. Citing two depositions, (one & two) of Chase employee Beth Cottrell, taken in Columbus in May of 2010, and a deposition of MERS Secretary and Treasurer, William Hultman taken in New Jersey in April of 2010. These depositions contain sworn testimony that at Chase Home Mortgage, 18,000 documents per month are executed and notarized per month by eight people, with admissions that: It is the notary and not the document signer who gives an oath who fills in numbers in the affidavits used in court ordered foreclosures; no oath is administered for the signing of each document; notarized documents are not verified by the person signing and giving oath that they have personal knowledge of the contents of the documents, but rather, signers are relying on verification by others; documents are signed in bulk and notarized in bulk separately; notaries know this at the time they notarize documents in this process. The MERS deposition of William Hultman demonstrates that after corporate status changes occurred for MERS, new designations of authority were not executed, leaving one or more individuals for the former MERS corporation continuing to delegate authority on behalf of the new corporation without authorization by the new corporation. [This is important to recognize when analyzing slander of title in the assignments and appointments of successor trustee in non-judicial states. The author has found numerous assignment documents where MERS has conveyed the note with the deed … a cardinal no-no … wherein the “VP” or “assistant secretary” uses a 1995 MERS official seal to verify the accuracy of the document. Don’t be fooled by this fraud!] According to its website: “MERS was created by the mortgage banking industry to streamline the mortgage process by using electronic commerce to eliminate paper, MERS acts as nominee in the county land records for the lender and servicer. Any loan registered on the MERS eSystem is inoculated against future assignments because MERS remains the nominal mortgagee no matter how many times servicing is traded. MERS as original mortgagee (MOM) is approved by Fannie Mae, Freddie Mac, Ginnie Mae, FHA and VA, California and Utah Housing Finance Agencies, as well as all of the major Wall Street rating agencies.” MERS was created by the mortgage lending industry to: (1) eliminate frequent re-recording of liens; (2) avoid paying county recorder fees and other local taxes as mortgage loans are assigned as backing or securitization for derivatives trading by banks and other financial institutions; (3) monitor and facilitate the transfer of original mortgage notes in the trading of mortgage-backed securities; and (4) foreclose on mortgage notes for unnamed note holders, even though it is not the real financial party in interest and does not hold the original note for the mortgage. [This is in dispute as MERS doesnít own the note!]
Currently, over half of all new residential mortgage loans in the U.S. are registered with MERS and recorded in county recording offices in MERSí name, reducing transparency, leaving consumers unable to determine who actually holds the note on their homes. Secretary Brunner made the following statement on the situation: “Mortgage foreclosure documents must be notarized according to the law. Requiring this is not an afterthought or an exercise of form over substanceóthe law must be followed when taking away someoneís home, regardless of the circumstances. For too long thousands of homes have been taken from consumers without proof that the foreclosing party actually has that right. Our courts must be cautious and require absolute adherence to the law. As the officer in Ohio who licenses notaries, I cannot stand idly by and watch financial institutions concoct a chain of title they never had by abusing the notary process. Itís not fair to consumers or to the employees who by virtue of their jobs, are signing these documents. I urge the U.S. Department of Justice to take up this investigation with vigor and purpose to protect consumers and hold financial institutions to the standards of scrutiny and exactitude required by law, even if it means prosecuting some of our largest corporations. These apparent violations of state law point to schemes that merit federal investigation of large institution lending practices and use of the U.S. Postal Service.” [This would constitute mail fraud under Title 18 U.S.C.A.!] Last week, GMAC Mortgage announced it had suspended evictions and post-foreclosure closings in 23 states over concerns about employees preparing foreclosures with affidavits submitted to judges containing information they did not personally verify. Yesterday it was announced that JPMorgan Chase and Co hired external counsel to review its affidavit process based on the depositions of Beth Cottrell and is delaying approximately 56,000 current foreclosure proceedings. The following document that the author was able to obtain shows the alleged fraudulent document admitted to by GMACís ìauthorized robosignorî, Jeffrey Stephan, which caused the foreclosure shutdown.