Bank of America has to Pay 8.5 BILLION Due to their Mortgage FRAUD (MERS) to Investors - LET ALL THE CLASS ACTION LAWSUITS BEGIN AGAINST ALL THE BANKS!

I AM LOVIN IT!!!  TOTALLY!

LET'S HOPE THIS IS THE FIRST OF A MULTITUDE OF SETTLEMENTS AND LETS HOPE CLASS ACTION LAWSUITS BEGIN AGAINST ALL THE WALL STREET FRAUD BANKS REGARDING THE FRAUD MORTGAGES (MERS)!

Bank of America has to pay out 8.5 BILLION to Investors (Pimco, Blackrock, Metlife, N.Y. Fed), which is just the beginning!  This is SO AWESOME!~

This shows the mortgage Fraud is going to hit the banks at the point they started the FRAUD of mortgages by creating MERS!

The investors want their money back, because of the FRAUD and how the banks put one mortgage in multiple bonds, but besides that the mortgages are not enforceable due to the FRAUD of the Wall Street Banks!  Their GREED is coming back to Roost!

LET THE SUITS BEGIN!

Portion From Article:

Bank of America may be about to part with more money than it has earned since 2008 in what will soon be the biggest financial settlement in the industry to date According to the WSJ, the Charlotte, NC-based bank is preparing to pay $8.5 billion to settle mortgage (mis)representation claims (aka the Mortgage putback issue) brought on by such high profile figures as BlackRock, Pimco, MetLife and, of course, the Federal Reserve, previously discussed on Zero Hedge. "A deal would end a nine-month fight with a group of 22 investors that hold more than $56 billion in mortgage-backed securities at the center of the dispute, including giant money manager BlackRock Inc., insurer MetLife Inc. and the Federal Reserve Bank of New York." Keep in mind that this is actually not good news for the bank, contrary to what the company's stock is doing after hours, as this still keeps the company exposed to a multitude of other rep and warranty litigation (which will now be largely underreserved), not to mention fraudclosure issues, which are totally unrelated, and which will plague the bank for years and years. Lastly, BAC is largley underreserved (see below) for a settlement of this size which means its Tier 1 capital ratio will likely be impacted due to a major outflow of cash.

From the WSJ:

The deal could embolden mutual-fund managers, insurance companies and investment partnerships to go after similar settlements with other major U.S. banks, arguing that billions in loans scooped up before the U.S. housing collapse didn't meet sellers' promises or were improperly managed. Most vulnerable would be Wells Fargo & Co and J.P. Morgan Chase & Co., which along with Bank of America collect loan payments on about half of all outstanding U.S. mortgages.

The dispute between Bank of America and the mortgage investors began last fall when they alleged that securities they bought before the financial crisis from Countrywide Financial Corp. were composed of loans that didn't meet sellers' promises about the quality of the borrowers or the collateral.

Watch Greece LIVE - Video Streaming of the shut down of Greece and Uprising of the people!

here is Greece LIVE - the people are STANDING UP and Saying NO to the Government - Tear Gas is being thrown at the people right now.

stopcarteltvgr on livestream.com. Broadcast Live Free

Why are Nuclear Power Plants throughout the U.S. having problems, besides the ones being flooded out?

I would like those who try and defend Nuclear power as being "clean energy" to debunk the fact that when one melts down then millions then can die.  The toxic waste of it last thousands and thousands of years.

First we know about Fort Calhoun in Nebraska that it is said 3 more feet of water there and there is a 100% chance of core damage! We know the berms broke 2 days ago and water flooded out the power and took over 100 gallons of fuel out into the river. They have been on emergency generator power and the workers have to bring in fuel by hand in cans now.

here is a fly by yesterday - Raw Footage



I noticed MSM is now mentioning the fact this morning two nuclear power plants are in trouble in the flooded areas and even showed Fort Calhoun. You know it must be bad for them to now acknowledge this problem, of which they stayed silent about for a couple of weeks.

Today it seems more nuclear power plants are in trouble today.  A N.J. nuclear power plant just now.

The headlines of the Examiner says it all - here they are:

NJ Salem 2 Nuclear reactor cooling pump fail forces closure

Salem 2 nuclear plant is under "hot-shutdown" mode and under investigation after a...

• Deborah Dupre
• Human Rights Examiner
• June 28, 2011

Fire at Los Alamos nuclear facility plutonium site: No-fly. Evacs.

• Deborah Dupre
• June 28, 2011

Human, environmental toll of nuclear and hazardous production and storage facilitiesMonday, the United States was threatened with radioactive fallout from not only Nebraska's Fort Calhoun Nuclear Plant battling long-term flooding, but also New Mexico's Los...

Tags:

Ft Calhoun: 100% chance core damage at 1010 ft. Now 1007 ft.

• Deborah Dupre
• June 27, 2011

There is a 100% chance of reactor core damage if floodwaters go above 1010 ft. at Fort Calhoun Nuclear Station according to the Nuclear Regulatory Commission (NRC) in 2010. The Missouri River is now approximately 1,007 ft. and expected...

Tags:

Warning: Water inside Ft Calhoun Nuclear Plant (video)

• Deborah Dupre
• June 27, 2011

Nuclear critic concern heightening, "high alert"Monday morning, a nuclear watchdog group sounded a warning alarm on ABC News about flood water now in Fort Calhoun Nuclear Plant that, according to AP, is seeping into the plant'...

Tags:

Fukushima to Fort Calhoun: Radiation threat, data manipulation

• Deborah Dupre
• June 27, 2011

Too little too late From Fukushima to Fort Calhoun nuclear facilities, distrust of government and industry is increasing as are human rights to health, safety, and security violations according to recent reports in Japan and the United States. In the...

Tags:

Flooded Ft Calhoun Nuclear Plant: 4 emergency failures, 2 electric

• Deborah Dupre
• June 26, 2011

Nuclear plant electric power failure, humanitarian crisis spreadingAs an astounding 195,000 cubic feet of water per second raged past Omaha today, the public was told that the nuclear plant across the flooding river from the city, the Fort...

Fort Calhoun Nuclear Flood Emergency: Hours from core damage

• Deborah Dupre
• June 26, 2011

The makeshift flood berm "holding floodwaters from" Ft. Calhoun Nuclear Plant collapsed at 1:30 this morning and the plant is now operating on emergency generators as workers try to restore electricity after water surrounded the plant...

So Los Alamos is surrounded by wildfires and there is a report there are 30000 barrels of toxic waste plutonium from nuclear power plants above ground there.  What will happen if the fire gets to them?  Will the southern part of the United states become a toxic waste land?   

From above link:

[...] The anti-nuclear watchdog group Concerned Citizens for Nuclear Safety said the fire appeared to be about 3 1/2 miles from a dumpsite where as many as 30,000 55-gallon drums of plutonium-contaminated waste were stored in fabric tents above ground. The group said the drums were awaiting transport to a low-level radiation dump site in southern New Mexico.
Lab spokesman Steve Sandoval declined to comment on that assertion, but did acknowledge there is low level waste stored in drums on lab property that is regularly taken to the Waste Isolation Pilot Project site in Carlsbad. [...]

MSNBC - has an article this morning about how bad it is and how close the fire is to Los Alamos and they have begun measuring radiation and plutonium in the air!

From Article:

Firefighters struggled early Tuesday to hold back a fierce blaze roaring out of control at the edge of the Los Alamos National Laboratory, a sprawling nuclear weapons complex that includes a plutonium facility.

Flames licked all day at the boundary of the laboratory site, home to the nation's largest supply of nuclear weapons, as fire crews scurried to douse spot fires carried onto the grounds by winds from the leading edge of the blaze.

The laboratory was shut down, and the adjacent town of Los Alamos, home to about 12,000 people, was placed under a mandatory evacuation earlier.

High winds on Monday forced the grounding of water-dropping helicopters and airplane tankers, limiting fire defenses largely to the use of bulldozers and hand tools. The facility cut natural gas to some areas as a precaution.

Fukushima is an ongoing terrible situation, which TEPCO and the Japanese government are still lying about!  The U.S. government is even in cohorts with them in lying about the amount of radiation that has made it's way over to the U.S.   there are many videos and I have watched many times how the whole area gets completely covered with smoke and steam from the reactors there.

Here is a video from the 26th of June, showing a chain reaction from Fukushima - I would like to know how much radiation is being emitted into the atmosphere when these chain reactions keep happening?



A video that Rense put together while he was interviewing an expert about Fukushima was put on youtube yesterday. A warning- Graphic images of babies and people and what plutonium and radiation does:

NOW TO ALL THOSE WHO STILL BELIEVE IN NUCLEAR POWER! STOP BEING DELUDED! THINK FOR YOURSELF! UNDERSTAND NUCLEAR ENERGY IS THE MOST TOXIC FORM OF ENERGY THERE IS! IT CONTAMINATES THE EARTH FOR THOUSANDS AND THOUSANDS OF YEARS! IT HAS ALREADY KILLED THOUSANDS IF NOT A MILLION PEOPLE (CHERNOBYL) AND IT HAS CAUSED BABIES TO BE DEFORMED BY THE THOUSANDS, IF NOT MILLION!


EVERYONE NEEDS TO STAND UP AND DEMAND ALL NUCLEAR ENERGY NEEDS TO BE STOPPED IMMEDIATELY! SERIOUSLY - THE CONTAMINATION OF THE EARTH AND PEOPLE HAS TO STOP NOW! THINK ABOUT OUR CHILDREN! THEY ARE NOT GOING TO HAVE A LIVEABLE AND SUSTAINABLE EARTH FOR THEIR FAMILIES!

This is one of those times, you have to wonder how much more can I take of sickening news!?    I believe what we do need to do is everyone come together in understanding, it is not you against me or any of us against each other.  It is us against those who are destroying the Earth!  We have a right to demand for the ceasing of all nuclear activity, because we LIVE here on Earth, this is our home!  We are her keepers!  Those who are making her toxic are not her keepers obviously, otherwise they would not continue to make her toxic for future generations all for paper money at this time!  Those who are in control, do not think down the line, they don't even think about their own children living on this Earth.  They are so selfish and Evil they are only thinking about money in their pockets at this very moment!  They don't even think about a year down the line!  That is what we are dealing with!  It is amazing to me, that the elected officials and corporation heads are so heartless they don't even think about their children or grandchildren!  It is mind boggling in that respect!  We have people who have controlled this world who are so focused on paper money at the moment, they don't consider the Earth nor the people nor their own families when they are making decisions.  Then they lie and cover up how toxic they have and are making the Earth and how many millions will die over their decisions!  How many millions of children are now going to be deformed throughout the world from Fukushima?  Also, it is being said Fort Calhoun is 20 Times more than Fukushima! 

Please, everyone STAND UP and DEMAND ALL NUCLEAR ENERGY STOP IMMEDIATELY!

This is Sickening - When will we all say "ENOUGH - NO MORE"! We do not give up our Dignity nor Rights to the U.S. government who have become Terrorist!

This is one of those articles that makes you absolutely STAND UP and say ENOUGH - NO MORE!

We can not allow our freedoms to be taken away and we begin to be treated as sub-human and as animals!

That is Exactly what the U.S. government is now doing!  The government is using the TSA to get people conditioned to being treated as animals and degrading our dignity and freedoms!


A 95 year old woman in a wheel chair was flying who has leukemia and TSA demanded she take off her Adult diaper to be patted down in Florida!  They detained the woman and her daughter for 45 minutes!

This is worse than disgusting!  The TSA have become a Terrorist organization and completely Terrorizing the citizens of the United States to make people submit to the government!

Portions:

Jean Weber of Destin filed a complaint with the Department of Homeland Security after her 95-year-old mother was detained and extensively searched last Saturday while trying to board a plane to fly to Michigan to be with family members during the final stages of her battle with leukemia.

Her mother, who was in a wheelchair, was asked to remove an adult diaper in order to complete a pat-down search.

“It’s something I couldn’t imagine happening on American soil,” Weber said Friday. “Here is my mother, 95 years old, 105 pounds, barely able to stand, and then this.”

Weber’s mother entered the airport’s security checkpoint in a wheelchair because she was not stable enough to walk through, Weber said.

Wheelchairs trigger certain protocols, including pat-downs and possible swabbing for explosives, Koshetz said.

“During any part of the process, if there is an alarm, then we have to resolve that alarm,” she said.

Weber said she did not know whether her mother had triggered an alarm during the 45 minutes they were detained.

She said security personnel then came out and told her they would need for her mother to remove her Depends diaper because it was soiled and was impeding their search.

Weber wheeled her mother into a bathroom, removed her diaper and returned. Her mother did not have another clean diaper with her, Weber said.

At what point will everyone say "NO MORE"!  Will people who have been asleep finally wake up to what is happening around them?

I will NEVER fly again due to the Terrorist who are molesting people and are degrading citizens for the enjoyment of the government and themselves!  Also how many child molesters are working for TSA?  This should be the last straw on the camels back for the people!  I would hope they realize that what is happening is not for the safety of the American public but for a Police State of the United States!  

Will people realize we have become where all movements are being controlled and watched by the government?  The government is even putting black boxes on all vehicles to track them, it is a Federal Mandate starting July 2011. 

Also - this video is Very interesting - Robert Welch in 1958 described everything that is happening today.  This is a MUST WATCH!  To understand that all those in government are working together to erode the United States in all ways!  You will then understand how all those in Washington are working together behind the scenes, though they will yell and scream about each other in front of the propaganda/controlled media.  

WTF!? People RIOT over Sports in Canada! Yet, Liberties Theft of the Money etc.... NOTHING!

This is Seriously a WTF?!

This shows you why all the countries are where they are at!  Why those who try and control have gotten away with taking all of our rights and freedoms AWAY!  Why the banks have been able to STEAL all the money from the people and have been stealing their retirement too!

PEOPLE RIOT OVER SPORTS IN CANADA - OVER LOSING THE STANLEY CUP!!

REALLY?????!!!  SPORTS???!!!! Is what you will RIOT over?  NOT the fact you have had your liberties taken away?  Not the fact you are living in a Police state?  Not the fact that those in government have stolen your life and retirement and all of  your money to give to the banks?  Not the fact that they lie about everything?

WOW - that shows you WHY the world is what it is!  People are so BRAINWASHED They put SPORTS Ahead of the bankruptcy of the people!

You almost wonder, is it useless to try and even inform people about truth and what is happening in the world, when their focus is on things have have no meaning in the long run and this is what they will riot over!?

Yep, I am sure TWTAC are very happy right now and smiling!~

Some Congressmen finally standing up for the Constitution? Congressmen SUE Obama over Libya ILLEGAL War!

Are some Congressmen finally getting balls?  A group of bipartisan Congressmen are standing up for the Constitution against Obama's ILLEGAL Libya War!

All I can say it is about time and overdue!  Obama has gone directly against the Constitution and started an ILLEGAL War without Congressional approval!  Of course, remember Obama got the Nobel Peace War Prize!  Since then he has made history by having the U.S. in the MOST WARS at one time!

My question is:  Why didn't every single member of Congress join in with this suit?  Why are the rest of them NOT standing up for the Constitution?

Portion of Article:

A bipartisan group of House members announced on Wednesday that it is filing a lawsuit charging that President Obama made an illegal end-run around Congress when he approved U.S military action against Libya.

“With regard to the war in Libya, we believe that the law was violated. We have asked the courts to move to protect the American people from the results of these illegal policies,” said Rep. Dennis Kucinich (D-Ohio), who led the 10-member anti-war coalition with Rep. Walter Jones (R-N.C.).

West Palm Beach Florida - Running out of Water. Only 22 Days left of a Water Supply! Drought is that bad!

 Here is the headline in the West Palm Beach Post.

City water could run out in weeks; ’significant threat exists to the public’s health’

Portion of Article:

 

by Andrew Abramson 

On Tuesday, unbeknown to the mayor or commissioners — city officials warned the South Florida Water Management District that it had only 22 days of water supply remaining. 

“Conditions are such that a significant threat exists to the public’s health, safety, and welfare; the health of animals, fish, or aquatic life; public water supply, and commercial, agricultural, and other reasonable uses,” the report stated in requesting permission for the city to tighten its watering restrictions.

A day after the city warned that it only had 22 days of water remaining, West Palm Beach approved an order on residents allowing just one day a week of watering, effective today. Also, the city started spending about $10,000 a day from its utility reserves to purchase water from the county. But the city can only get one-third of its water needs from the county and might have to rely solely on the county supply should it run out of its own water.

If the city estimates are accurate, it would run out of water on June 28. It’s not immediately clear how long the addition of county water and the new restrictions on watering will extend that.

 I am also linking what I had posted in April but brought back up 2 days ago.  I would not be putting this out there and myself out there, if I was not being pushed to do this.  Please read the below link.

http://sherriequestioningall.blogspot.com/2011/04/i-am-asking-all-who-read-this-to-do-one.html

Understanding Why and What is going on in the World! This TRUTH Video explains WHO CONTROLS ALL Nations and Laws! This is REAL History and information! Inform Yourself and Understand What and Why things are happening!

I had read a few years ago how England was actually controlled by Rome - The Pope.  I also read how the Declaration of Independence was not real and the U.S. was still under England, which actually makes it under the control of the Pope.

It was always confusing to me and I did not understand it all when I would do research.  Sites have had the documentation etc. but it was still confusing.  I know it has been found that each state actually has two documents for them... One says Governor of "the State" the other says Governor of "state".

This video is 2 hours and 20 minutes, but it will be one of the best 2 hours and 20 minutes you will ever spend, if you are a searcher for the TRUTH!  Why?  Because it EXPLAINS EVERYTHING and Walter Veith shows how it happened and what the proof of it all is.

This is REAL!  The Real fact is the U.S. is NOT an independent nation - We NEVER have been!  Sounds bizarre and very "conspiracy" minded.  But you will understand it through the documents and history Mr. Veith spells out.

Then everything makes sense in what is happening and why it is happening and who is who.  Also wonder why the U.S. Presidents always have some "Royal" lineage?  This video explains that too.  The U.S. Presidents are always subservient to the "Crown".  But the "Crown" is actually owned by the Pope.

As I have read many times over and over and have found through research of many subjects, including Ancient History - what we have been taught and told is a lie.  History is not what we think it is, nothing is what we think it is.

It all sounds mind boggling.  It all sounds too "outrageous" to be true.  It all sounds like something, someone who is a nut dreamed up.  It may "sound" that way, but before making that judgement, I am asking you to take the time to watch this.  From this you will understand it all.  From this you will see History is not what we have been taught.  There are many who have verified this information through their research.  They had put it out there but it was hard to understand, due to them being lawyers and releasing the "legal papers" of it.  As you know "Legal Papers" can be confusing.

Walter Veith takes you step by step showing the history and how it came to be.  He shows and proves how the Pope is actually the ruler of the world and how people of nations only think they are sovereign citizens of their own countries.

This is not a crazy conspiracy  theory as it might sound - watch the video and then you will completely understand.  You will also understand how the "Global Warming" is a ruse of those who try and control.  Btw; You will find I will never use the initials of PT* anymore  - I will use the words "those who try and Control" or TWTAC.

Watch this and pass it to your friends, through Knowledge and TRUTH is the only way to understand what is going on, who is behind it and Why everything is happening in the world.

As Mr. Veith likes to say "This is FASCINATING Stuff". 

I am asking all who read this to do one thing - PLEASE STORE WATER!

6/13/11 - I originally wrote this and put it on the blog on April 8th, but I feel I should bring it back up to the top.



All I can say is, I have not wanted to put this out there on my blog.  I have not wanted to have people think oddly of me.

But it seems no matter what I have wanted, what I must do is something else.

So, let's just say I have had a request from a "higher realm" to ask people to

PLEASE STORE WATER!  

There is a lot more involved with this request to people, of which I am not going to go into.  But I will say - this request comes from what I consider are Angels/Spiritual Guides/God/higher sources.  Yeah, sounds odd, right?


Someone asked me "What would be the length of time"?  I do not have any answer to that.  I do not know.  What I do know is that it would be better to have water stored than no water at all.

Water is what sustains life.  If you do not have water that is drinkable then you can not sustain your life to figure out what next steps need to be taken for access to clean water.

I sincerely hope that there will be no need for people to have to use stored water and that this request could be laughed at at some point in the future.

I will say, I believe every person is intuitive and every person is able to get information through higher realms, we just have to pay attention and listen to that inner voice and information given to us.

This request is being made from my own "higher sources".  Also another requirement about this request, is the stored water must be inside and not outside.

For over one week I have resisted putting this up on my blog because I have not wanted to put  myself out there to others, but it seems I it is something I must do.

I will explain to you a little more, so you understand where this is coming from.  I do have dreams where it seems the dreams are real information.  I knew a week before the information came out about a reactor being cracked and leaking through the bottom at the Fukushima nuclear power plant in the media.  I knew this because I was given the information through a dream/vision.  I told 4 other people that morning about it.  I saw the melted reactor fuel rods underneath the reactor and I saw the Japanese men faces (those in control) and their terrified reactions to the news.  I was told they were going to hide the information as long as possible and that everything of them trying to stop the meltdown was for show and a charade.  The real purposes for them to do what they have to do to transfer their wealth and protect themselves as much as possible.  I believe the situation is going to become much worst in a small amount of time.

One other thing I will add to this "knowing" on March 11th I woke up and before I got out of bed, I "knew/felt" that something happened.  I felt and thought to myself "Something happened overnight that involved Earth changes and after today the world will never be the same".  It was not until I turned on the T.V. after getting up, I heard about Japan's quake and tsunami.  I knew much more was going to come from it because I knew that our world was going to be changed forever from the event.   Then later was the information about Fukushima nuclear power plant. 

The above is only a very small fraction of information I believe I have received from my Angels/guides, but it is all I need to put out there at this time for people to understand I do get real information.  You may think "yeah, she is putting this out after the fact".  Yes, that would be true, but there are a few I told about this before the fact and it is not information I want to put out at all, but again something I am being made to. 

Please understand I am not writing this because I want to.  I guess I did a dry run in putting this information out by first putting it in a closed area of a forum.  This is very uncomfortable for me, but by putting it on the forum first, I gained more comfort, because ultimately I guess I was suppose to end up asking people to Store water on this blog.

My blog is about truth and it is not about personal information and I feel my dreams/visions are very personal and private.  Yet, I am being pushed to do this, as I woke up time and time again last night with "It is time to get the information out to all, for them to store water".  You have no idea the resistance I have put up not do this but I have been pushed and pushed, to where I wake up constantly at night with the same thought/being told, that I have to do it.  (I sure hope, now that I have done this I will be not be woken up every half hour, with the request) :)

Think of me as you will, I have never put out this type of information before but the time is here.

I have a few questions..... Would it really hurt to store water?  Is there any real cost to storing water?  Is it better to have water stored in case you need it than not to have water at all?  Isn't water what sustains all life?

PLEASE STORE WATER TODAY!! 

Look within if this feels like truth to you then follow your feelings and own intuition.  

I am not going to "predict" things here.  There are some things I KNOW - I have seen things and the more I have come to the understanding we are all ONE, we are each others keepers in helping one another.  

If there is a time that the stored water is needed (which I would not be putting this out there - if I did not feel it will be) and it saved some by listening, then I will have done my job of which I feel the strong need to.  

I honor all and I ask for people to RADIATE LOVE AND LIGHT to All people to Japan and to our Earth! 

Think of me as you will, but know my posting this is from Truth and Sincerity, because people read this blog for truth and I am continuing in truth.  This is truth to me.  

Also understand please, I have had miracles in my life if you watched the video asking people to pray for Japan and a miracle, you would have heard my story of an absolute miracle.   

I believe in Angels, I know Angels protected me that day I felt their arms around me, I have also felt them holding my hand and showing me things and it has been happening more and more recently.  

So...... believe me or don't it is up to you, know your own truth.

I have done what I have been requested to do and those who read this are suppose to and those who follow the suggestion are suppose to.  

To all LOVE AND LIGHT!  Please remember if things happen, please help  one another.  Japan showed us how it can be done.  We can honor each other even in times of crisis!

UPDATE 6/15/11 - W. Palm Beach only has 22 more days left of water supply.  
I believe there will be other areas also where water becomes the most valuable commodity there is. 

NY Appellate Court - MERS NO RIGHTS TO FORECLOSE OR ASSIGN A MORTGAGE! HUGE HUGE RULING!

N.Y APPELLATE COURT - MERS NO RIGHTS TO FORECLOSE OR ASSIGN A MORTGAGE!

HUGE HUGE RULING FOR ALL MERS HOMEOWNERS WHICH LAWYERS EVERYWHERE CAN USE FOR A FORECLOSURE DEFENSE!

Go to link at 4closurefraud to read the full ruling!

Appeals Court Clarifies MERS Role in Foreclosures

The ubiquitous Mortgage Electronic Registration Systems, nominal holder of millions of mortgages, does not have the right to foreclose on a mortgage in default or assign that right to anyone else if it does not hold the underlying promissory note, the Appellate Division, Second Department, ruled Friday. “This Court is mindful of the impact that this decision may have on the mortgage industry in New York, and perhaps the nation,” Justice John M. Leventhal wrote for a unanimous panel in Bank of New York v. Silverberg, 17464/08. “Nonetheless, the law must not yield to expediency and the convenience of lending institutions. Proper procedures must be followed to ensure the reliability of the chain of ownership, to secure the dependable transfer of property, and to assure the enforcement of the rules that govern real property.” The opinion noted that MERS is involved in about 60 percent of the mortgages originated in the United States.

From the ruling…

(Emphasis added by 4F)

Decided on June 7, 2011

SUPREME COURT OF THE STATE OF NEW YORK
APPELLATE DIVISION : SECOND JUDICIAL DEPARTMENT

ANITA R. FLORIO, J.P.
THOMAS A. DICKERSON
JOHN M. LEVENTHAL
ARIEL E. BELEN, JJ.
2010-00131
(Index No. 17464-08)

[*1]Bank of New York, etc., respondent,
v
Stephen Silverberg, et al., appellants, et al., defendants.

LEVENTHAL, J.This matter involves the enforcement of the rules that govern real property and whether such rules should be bent to accommodate a system that has taken on a life of its own. The issue presented on this appeal is whether a party has standing to commence a foreclosure action when that party’s assignor—in this case, Mortgage Electronic Registration Systems, Inc. (hereinafter MERS) —was listed in the underlying mortgage instruments as a nominee and mortgagee for the purpose of recording, but was never the actual holder or assignee of the underlying notes. We answer this question in the negative.

…

On appeal, the defendants argue that the plaintiff lacks standing to sue because it did not own the notes and mortgages at the time it commenced the foreclosure action. Specifically, the defendants contend that neither MERS nor Countrywide ever transferred or endorsed the notes described in the consolidation agreement to the plaintiff, as required by the Uniform Commercial Code. Moreover, the defendants assert that the mortgages were never properly assigned to the plaintiff because MERS, as nominee for Countrywide, did not have the authority to effectuate an assignment of the mortgages. The defendants further assert that the mortgages and notes were bifurcated, rendering the mortgages unenforceable and foreclosure impossible, and that because of such bifurcation, MERS never had an assignable interest in the notes. The defendants also contend [*3]that the Supreme Court erred in considering the corrected assignment of mortgage because it was not authenticated by someone with personal knowledge of how and when it was created, and was improperly submitted in opposition to the motion.

…

Here, the consolidation agreement purported to merge the two prior notes and mortgages into one loan obligation. Countrywide, as noted above, was not a party to the consolidation agreement. ” Either a written assignment of the underlying note or the physical delivery of the note prior to the commencement of the foreclosure action is sufficient to transfer the obligation, and the mortgage passes with the debt as an inseparable incident’”

…

Therefore, assuming that the consolidation agreement transformed MERS into a mortgagee for the purpose of recording—even though it never loaned any money, never had a right to receive payment of the loan, and never had a right to foreclose on the property upon a default in payment—the consolidation agreement did not give MERS title to the note, nor does the record show that the note was physically delivered to MERS. Indeed, the consolidation agreement defines “Note Holder,” rather than the mortgagee, as the “Lender or anyone who succeeds to Lender’s right under the Agreement and who is entitled to receive the payments under the Agreement.” Hence, the plaintiff, which merely stepped into the shoes of MERS, its assignor, and gained only that to which its assignor was entitled (see Matter of International Ribbon Mills [Arjan Ribbons], 36 NY2d 121, 126; see also UCC 3-201 ["(t)ransfer of an instrument vests in the transferee such rights as the transferor has therein"]), did not acquire the power to foreclose by way of the corrected assignment.

…

In sum, because MERS was never the lawful holder or assignee of the notes described and identified in the consolidation agreement, the corrected assignment of mortgage is a nullity, and MERS was without authority to assign the power to foreclose to the plaintiff. Consequently, the plaintiff failed to show that it had standing to foreclose. MERS purportedly holds approximately 60 million mortgage loans (see Michael Powell & Gretchen Morgenson, MERS? It May Have Swallowed Your Loan, New York Times, March 5, 2011), and is involved in the origination of approximately 60% of all mortgage loans in the United States (see Peterson at 1362; Kate Berry, Foreclosures Turn Up Heat on MERS, Am. [*6]Banker, July 10, 2007, at 1). This Court is mindful of the impact that this decision may have on the mortgage industry in New York, and perhaps the nation. Nonetheless, the law must not yield to expediency and the convenience of lending institutions. Proper procedures must be followed to ensure the reliability of the chain of ownership, to secure the dependable transfer of property, and to assure the enforcement of the rules that govern real property. Accordingly, the Supreme Court should have granted the defendants’ motion pursuant to CPLR 3211(a) (3) to dismiss the complaint insofar as asserted against them for lack of standing. Thus, the order is reversed, on the law, and the motion of the defendants Stephen Silverberg and Fredrica Silverberg pursuant to CPLR 3211(a)(3) to dismiss the complaint insofar as asserted against them for lack of standing is granted.

FLORIO, J.P., DICKERSON, and BELEN, JJ., concur.

ORDERED that the order is reversed, on the law, with costs, and the motion of the defendants Stephen Silverberg and Fredrica Silverberg pursuant to CPLR 3211(a)(3) to dismiss the complaint insofar as asserted against them for lack of standing is granted.