The Unanticipated Consequences of MERS

Where are the perp walks?  Institutionalized fraud.

regards,
-Lance

The Unanticipated Consequences of MERS

By Barry Ritholtz - March 8th, 2011, 8:30AM
Bill Black is the author of The Best Way to Rob a Bank is to Own One  
and an associate professor of economics and law at the University of  
Missouri-Kansas City. He is a white-collar criminologist who has spent  
years working on regulatory policy and fraud prevention as Executive  
Director of the Institute for Fraud Prevention, Litigation Director of  
the Federal Home Loan Bank Board and Deputy Director of the National  
Commission on Financial Institution Reform, Recovery and Enforcement,  
among other positions.

~~~

By William K. Black
New Economic Perspectives


<excerpt>

MERS’ members, therefore, had overwhelming incentives to engage in  
foreclosure fraud. The loans they were seeking to foreclose on often  
lacked essential documentation and were induced by defrauding the  
borrower. They had no legal right to foreclose, but that result was  
unacceptable to the senior officers controlling the loan servicers.  
They insisted on results, and did not monitor compliance with the law.  
The result was tens of thousands of felonies – monthly – by some of  
the largest financial institutions in the world. Filing false  
affidavits became business as usual. No one senior in the Justice  
Department or administration appears to be seriously upset about this.  
These felonies were committed by, or at the direction of, MERS  
“officers” – and MERS does not appear to be seriously upset about  
fraudulently foreclosing on the homes of tens of thousands of  
Americans. I study fraud by elites, and even I am stunned by the  
frequency and nature of the frauds and felonies and the lack of  
prosecutions and the overall blasé attitude by CEOs to the fraud and  
felonies.

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