Federal regulators simply aren’t that interested in investigating foreclosure fraud and laying down the appropriate punishments. Tom Miller is too busy deflecting criticism about massive campaign contributions from the banking sector to run a proper state-based investigation. So it’s actually come down to the registers of deeds – the unassuming public servants working in county recorder’s offices across the country and carefully recording the transfers of land titles – to step up and deliver some measure of accountability on the banks for violations of law. So far, precious few registers of deeds have taken on this seemingly impossible task. But Jeff Thigpen in Guilford County, a county of about 465,000 in the center of North Carolina (the biggest city is Greensboro), has delivered the goods.
Thousands of mortgage documents in Guilford County could potentially be fraudulent, the county’s register of deeds said.
Jeff Thigpen said his office noticed signature discrepancies in more than 4,500 mortgage and foreclosure documents submitted between August 2006 and April 2010. While the same name was signed to documents, the signature characteristics were found to be different, Thigpen said.
I was left infuriated, rooted in what I believe is a betrayal of public trust,” Thigpen said.
The signatures were produced in companies Thigpen calls “mortgage mills,” which banks use to speed up the processes of selling, extending loans and charging more fees.
Thigpen basically followed the investigation undertaken by 60 Minutes; in fact, Lynn Szymoniak, the forgery and document fraud expert featured in that article, appeared with Thigpen in his press conference on this. She’s tried to get practically every regulator in the country to listen to her about this massive fraud perpetrated on state courts. Thigpen is listening.
Thigpen simply went through all the documents submitted to his office by DocX, the mortgage mill company, over a four-year period. He got 6,100 documents, and 4,500 had signature irregularities, where the name was the same but the signature didn’t match on individual documents. These forgeries were commonplace throughout the past several years and nobody wants to own up to it.
Wells Fargo processed 54% of the documents and Bank of America processed 15%. The inclusion of those two big banks in the study got the attention of Bloomberg.
Thigpen basically sees the catastrophe ahead, if mortgage assignments are fraudulent and people trying to sell their homes encounter problems related to title. His data is arguably more robust than anything put out by the overlapping state or federal investigations.
If this takes off, registers of deeds around the country could do these investigations with their existing documents in their offices. In Ingham County, Michigan, another register of deeds is making noise:
Ingham County Register of Deeds Curtis Hertel Jr. asked state lawmakers Wednesday to address a tide of fraudulent foreclosure documents he believes are forcing many out of their homes in mid-Michigan and nationwide.
Speaking to the House Banking and Financial Services Committee, Hertel called for legislation that would expand the title information and mortgage history needed when a bank files for foreclosure – as well as create a review board for homeowners to appeal foreclosures.
Currently, banks can initiate foreclosures with a one-page document filed with the Register of Deeds. A homeowner who wishes to contest a foreclosure must hire an attorney to seek a court injunction.
“Homeowners certainly have the right to know that their house is being foreclosed properly,” Hertel said. “Under Michigan law, we have no checks and balances in the system.”
The implications are profound. First, you have the banking industry destroying the land title system in the country which has lasted for hundreds of years and is arguably a major basis for civil society. Second, you have the spectacle of MERS, the system which pretty much led to all these document forgeries. MERS allowed banks to bypass county recorder’s offices – and the fees for transfers of mortgage – but the legality of the enterprise is in serious question. A recent ruling in Michigan affirmed that MERS has no standing to foreclose, which has led to the stoppage of closings on some bank-owned homes, because the title insurance companies found them too risky. The bigger issue is that registers of deeds could sue MERS for back fees relating to multiple transfers of mortgages. That windfall could run into the billions of dollars.
Who knew that it would be the registers of deeds who would play a role in saving the rule of law in this country?




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This needs to be front paged.
Thanks DDay.
I love this. Kudos to Mr. Thigpen. It takes what it takes to bring this out. I am following all this and there are so many lawsuits now it is impossible to keep up. Totally crazy now and TPTB can’t keep the lid on anymore. The speed of the disclosures are making me dizzy and that is a good thing.
Jeff Thigpen is upholding his office and I commend him for that. I’d like to see the other County officials across the country do the same. I won’t buy property again in this country until they do. Support your local Register of Deeds in upholding their office.
I was in the Suffolk County Registry of Deeds (Boston, MA) last week and I mentioned the MERS system to the employee manning the Recorded Land desk (Suffolk Co also has a Registered Land desk in the same Registry, but the distinction is not clear to me). In any case, I asked him point blank whether they were talking about billing MERS, investment banks, etc. for the unpaid fees related to the transfer of mortgages and land titles.
He said, “I know we could use the money.” I hope he or his boss knows how to find the money.
Incredible read thanks David for this one.
I know little about the real estate industry and banking/finance/loan practices, but this sounds pretty good.
Hope registers of deeds reviews go all MI Jasmine on this one.
I’d say get formal but be polite. Do your homework, make a written request with substantiating citations, make an appointment with the Register of Deeds and have a personal meeting. It’s even better for a group of informed, concerned citizens to do this. No Register of Deeds worth their salt wants to preside over an office full of fraudulent legal records and might need the assistance of the County Attorney’s office. Show support and gratitude for your Register and County Attorney in their efforts to certify the integrity of your county records.
Register John O’Brien of South Essex County in Massachusetts started all this back in November, when he asked A.G. Martha Coakley to investigate MERS and sue them for $22 million–the least amount of money he figures the registry is owed by MERS for fees not paid (that’s at least 2 recording fees per every mortgage assigned to MERS, and we know that’s a low estimate). Then, last month, he asked State Treasurer Steve Grossman to divest the registry funds deposited with BoA, $25 million annually, and instead deposit the money in a non-MERS bank. He’s been contacting other registers all over the country and is on a real crusade. David, you should give him a call!
Thanks David!
so we got the Register of Deeds upholding the rule of law and librarians upholding our privacy rights against the Patriot Act…. good to know that some Americans do believe in civil rights and rule of law for all citizens.
For the first five years that I was making payments on my house, the tax documents would come to my house (I bought from my renter) but they had his name on them. MY mortgagor was supposed to pay the taxes and I think they have each year. But I could not figure out why my name was not on the deed. Now I know. This was back in 2001, all this was going on back then as well even though, most of the research focuses on since 2005. At any rate, at some point, around the time of filing my chapter 13 bankruptcy, my name was on the tax documents. I don’t know how or why it changed for sure, but I bet my state got wise or the old owner was looking like he owed the taxes but they kept getting paid.
You are certainly not alone Larue. This issue is so complicated that it is a feat in itself to try to explain what has happened. My career was in the Mortgage business and today I am trying to explain to friends and relatives what has happened and there just isn’t an easy way to explain it. I left the business when it what somewhat legal and have been playing catch up since all this has come to light. I now know that finding a clear chain of title on any loan will be like finding a needle in a haystack. Loans that have been ‘paid in full’ have robo-signed documents so everyone that has bought or sold real estate should be looking at their docs now. People may still own what they thought they sold or someone else may own the real estate they thought they bought. Refinances were very big in the last few years, most cases to get a better interest rate but the reconveyances (paid in full) were robo-signed/fraudulant. Who is going to go back and properly reconvey all those refi’s. This thing is so big, supposedly there are 65 million loans involved and I don’t even believe that is the real number. This will not be fixed in my lifetime.
Private property rights are the foundation of our legal and economic system. These irresponsible banks have truly screwed us all. They must be made to pay the price for thier fraud plain and simple. Fraud is fraud and forgery is forgery. The lawers should lose thier licenses.
My hats off to the wonderful registrars of conveyance around the country that are bringing this to light. No one wants to admit how big and how willful this fraud was. Fraud by banks is still fraud and should be prosecuted and funds reimbursed to the offices that are owed money from MERS.
the fraud is so pervasive that the law cannot be allowed to correct it.