The Iceberg called MERS Are you looking at what is above the waterline or below the waterline??

This article is the first of a series of articles regarding the debunking of Mortgage Electronic Systems, Inc., herein known as (MERS) and stripping away the layers of misinformation that have been spewed out over years and years of presumptions and assumptions. So let us start out in the beginning. What has really happened and why? Once upon a time in 1993 a White Paper was created for the purpose of producing a viable solution of pushing through the paper work that was required to be done regarding the filing of public records pertaining to real property, and what was needed to be done to make this a more profitable and a faster process. (A white paper is a report or guide that helps the reader to understand a problem or issue). The parties that fabricated this collusion were an interesting cartel. At the helm Angelo Mozilo took the lead. At that time he was the President of the Mortgage Bankers Association and was also the President and CEO of Countrywide Funding Corporation. Below him was the Inter-Agency Technology Task Force which was comprised of Phyillis Slesinger and Daniel McLaughlin both affiliated with the Mortgage Bankers Association. The Steering Committee was comprised of the following people: William Kelvie was the Executive Vice President and Chief Information officer for Fannie Mae; Paul Peterson was the Senior Vice President Servicing for Freddie Mac; Kenneth Tucker was the Deputy Director of the FHA (Federal Housing Authority), Representative of FHA; Michael Daly was the GNMA (Ginnie Mae) Specialist Assistant; and Warren Laski was the Mortgage Bankers Association Executive Vice President. These were people who were authorized to make changes which would affect the RMBS market forever. The brief description of business that is filed with the SEC (Security Exchange Commission) alleges that it is a National Mortgage Rights Registry. It does not state that it is a recorder of records, but is exclusively a registry.

The issue that needed to be addressed was the known problem regarding a deficiency in time and money, resulting in a costly outcome. The time that was required to properly fulfill the statutory requirements of law for the perfection of a properly secured lien for real property and the money that it was costing to do it correctly was digging into the pockets of the banks. Counties had to get paid and people had to do the work. Securitization did not just suddenly appear on the horizon. It was started decades ago, and was made popular in the 70s with the Salomon Brother s, which was a Wall Street investment bank. By the 90s this machine we call securitization had started to grow and gain momentum. The first properties did not enter into MERS until 1997. The National Registry was originally intended to satisfy the requirements of UETA and ESIGN. Nevertheless, 15 U.S.C. 7003 (3) states that Article 3

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and Article 9 does not apply to UETA and ESIGN as we are talking about real property and not personal property. MERS operates in the intangible world of e-Mortgages and e-Notes, not paper notes and paper security instruments. Attempting to provide functionality for paper note tracking would greatly complicate things for which MERS was designed to do. If one were to look and compare the basics then you could discern the difference between Registration vs. Recording. MERS is not a system of legal record nor a replacement for the public land records. MERS is solely a tracking system. No loan interests are transferred using MERS, they are only tracked. Transferable records are personal property, Not Real Property, and therefore within the general revised scope of the Uniform Commercial Code Revised Article 9 and Revised Article 109(a). However, Chapter 9 of the Uniform Commercial Code does not apply to the creation or transfer or interest in or lien on real property. Sec. 9.109. SCOPE1 (d) This chapter does not apply to: (2) a lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but Section 9.333 applies with respect to priority of the lien;
http://www.statutes.legis.state.tx.us/Docs/BC/htm/BC.9.htm#9.109

If one were to look closely at the transferable records then they would understand that a Transferable Record is NOT an instrument. Rather under Revised Article 9 a transferable record secured by real property is a payment intangible. This is why MERS is like the iceberg floating in the ocean. You only are only looking at what is above the water line, and not the 90 percent that you cannot see. In part 2 we will dive below the water line of MERS and look at what is being claimed by MERS. Joseph Esquivel Mortgage Compliance Investigators Copyrighted, all rights reserved

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