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U.S. Mortgage-Fraud: The Next Chapter

Articles & Blogs - US Commentary

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In the first decade of this century, the Wall Street crime syndicate perpetrated the largest crime-wave in human history in terms of the number of acts of fraud: its serial mortgage fraud. This initial crime-wave was conducted in order to facilitate an even larger crime-wave (by dollar value): the “securitization” of these fraud-tainted mortgages.

None of the ring-leaders of this crime-wave have even been charged, let alone prosecuted, let alone convicted. An estimated 60+ million U.S. mortgages (more than half of all outstanding mortgages) have been tainted by Wall Street mortgage-fraud – primarily through the invalid/illegal use of their own, private “land registry” (known as “MERS”), as opposed to the official/legitimate land title registry required by law.

The Wall Street fraud-factories never even sought permission to bypass official registry requirements. They simply collectively and unilaterally flouted the law, partially to “streamline” (i.e. evade) processing fees and requirements, but mostly to facilitate the $trillions in mortgage-related fraud which Wall Street built atop their original crime-wave.

It’s important to take a moment here to note that we are talking about “fraud” on numerous levels. The fraudulent registering of approximately 60 million “MERS” mortgages was only one facet of this fraud. There were millions upon millions of other acts of fraud connected with these mortgages.

The fraud-chain began with the “liars’ loans” – primarily instigated at the lenders’ end – where mortgage applicants were assured that no one told the truth on these documents, and thus applicants were free to fill in whatever numbers the mortgage-broker told them would help to facilitate purchase. On top of the Liars’ Loans, on top of the 60 million fraudulent entries in the MERS pseudo-registry; the Wall Street crime syndicate piled on 10’s of millions of additional acts of fraud.

This primarily revolves around the “robo-signing” scandal: serial, deliberate fraud, where the Wall Street crime syndicate literally “manufactured” fraudulent documents to create entirely separate, fallacious paper-trails for these already fraud-tainted mortgages. Indeed, some of the individual foot-soldiers for these fraud-factories are known to have committed thousands of acts of fraud per month.

The corrupt U.S. judiciary has willfully blinded itself to this organized, serial fraud; rubber-stamping 100’s of thousands (millions?) of illegitimate foreclosures, with the result being that the Big Banks illegitimately took possession of these properties based on known, fraudulent documents and without ever proving they had the right to take possession of these properties in accordance with the law.

It is with this context in front of us that we must view the extremely offensive headline from the propagandists at Reuters:

Bank of America, other banks move closer to ending mortgage mess

Obviously the initial paragraphs of this article indicate that nothing has “ended” regarding this “mortgage mess”. Sixty million properties are still tainted with MERS-fraud alone. Many of those properties have been tainted with multiple acts of additional fraud, and some properties outside of the MERS registry have also been tainted with this additional fraud.


This takes place in a land registry system which is supposed to guarantee “perfect title” to any/every bona fide purchaser. Where even the tiniest flaw is discovered, this mandates a thorough litigation: to unearth each/every act of fraud, trace back the land title to a point in time before it was tainted with fraud, and to thus “fix” the title at that time.

What this means in practice is that many (supposed) U.S. “homeowners” will be told they do not own the home which they just finished paying for. If these cheated homeowners are able to identify the specific perpetrators of the original fraud, if those perpetrators have not already been bankrupted by their serial fraud, if the corrupt U.S. judiciary actually does it duty, and if they can afford to hire a lawyer and fight a battle in court; then these would-be homeowners may actually end up with the property they thought they had purchased. Or they could end up with nothing.

With these 60+ million fraud-tainted properties having now been “swept under the carpet” by the U.S. government, the U.S. judiciary, and (of course) the Big Banks themselves; what did Reuters mean when it talked about “an end to the mortgage mess”? It meant that its friends, the Big Banks, were now on the verge of obtaining nearly complete legal immunity to the largest crime-wave in human history.

In other words, many (innocent) purchasers of these fraud-tainted properties will be told that they are barred by law from suing the only parties who can compensate them for the properties they thought they had purchased – guaranteeing that many (most?) of these victims will never be able to obtain either the property they thought they had purchased or the money they paid to purchase that property.

Worse still is simply the unimaginable quantity of these fraud-tainted properties. If every U.S. court with jurisdiction to try such cases ceased to perform any other litigation, and devoted 100% of their time/energy/resources to fixing these fraud-tainted properties (one at a time) it is a virtual certainty that no American currently alive today would see a real “end” to Wall Street mortgage-fraud.

Understand that because of the (additional) serial acts of fraud attached to the 60+ million original acts of mortgage fraud (primarily “robo-signing” fraud) that most of these litigations will be slow, arduous, and time-consuming. This reality is a further condemnation of the U.S. judiciary, where these fraud-accomplices sometimes rubber-stamped dozens of illegitimate foreclosures in a single day.

Obviously, nothing at all has “ended” with respect to U.S. mortgage fraud – other than most of the legal/criminal liability for the original perpetrators of the ‘lion’s share’ of this fraud. In fact, U.S. mortgage-fraud has entered a new era which we can simply call “buyer beware.”

If one was to purchase any U.S. property which has had a mortgage against it at any time in the last decade, the odds are somewhat over 50% that the “purchaser” will not have (legal) bona fide ownership of that property; meaning that “their home” could be taken from them at any time – via some future litigation.

The end to (most) Big Bank liability means that these “homeowners” could have their properties taken from them (at any time), and be legally prevented from even attempting to seek compensation for losing their homes.

Thus, as Reuters dubs the next chapter of U.S. mortgage-fraud as “the end of mortgage fraud”, we have learned one thing: we’ve learned who the Reuters media oligopoly actually represents – the Big Banks. If they are in the clear, then in the eyes of Reuters (and the rest of the Corporate Media) it’s “problem solved.”

Meanwhile, for ordinary Americans the era of “buyer beware” for all would-be homeowners has just begun. Unless you want to hire a lawyer to conduct some exhaustive (and very expensive) title verification  prior to purchasing, then the majority of Americans “buying a home” today are doing little more than rolling the dice – and praying they don’t end up with “snake eyes.”

Comments (2)Add Comment
Jeff Nielson
written by Jeff Nielson, January 11, 2013
Jeff: you overlooked one point. MERS was established in 1995 and basically lay dormant for several years until sub prime loans were gaining traction. This means, obviously, that the whole deal was pre-planned and purposeful.

Thanks for keeping me honest Apberusdisvet. Yes, I was aware that MERS was founded in the 1990's. And in fact the REAL "beginning" of the Wall Street housing-bubble plot traces back to the 1990's -- where the Clinton regime essentially totally deregulated these fraud-factories.

This permitted "securitization" (i.e. the BIG scam), with the massive housing bubble simply providing the fodder for that larger, securitization bubble.
written by apberusdisvet, January 11, 2013
Jeff: you overlooked one point. MERS was established in 1995 and basically lay dormant for several years until sub prime loans were gaining traction. This means, obviously, that the whole deal was pre-planned and purposeful.

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