While Eric Schneiderman’s MERS lawsuit mostly crashed and burned, another suit against the electronic registry, filed just yesterday, appears to have more determination behind it. Jeff Thigpen, the register of deeds for Guilford County, North Carolina, sued MERS, the document processing company Lender Processing Services and several banks and loan servicers, using as evidence the contents of his register of deeds’ office. Here’s an excerpt from the press release:
“Our office uncovered an abundance of falsified, forged, and fraudulently executed mortgage documents,” said Thigpen. “But our investigation only found the tip of the iceberg. We need the banks to clean up their mess.”
The suit cites as evidence, Thigpen’s identification of over 6,100 mortgage documents (4,519 of those by DocX) which were filed with the Register of Deeds and signed in the names of known robo-signer aliases: “Linda Green,” “Christie Baldwin,” “Pat Kingston,” “Korell Harp,” “Jessica Ohde,” “Rita Knowles,” “Linda Thoresen,” and “Brent Bagley.”
“How can we maintain accurate records of title with fraudulent documents? The banks are also maintaining their own private registry called ‘MERS’ that prevents the public from discovering who owns what loans. Because there is no accountability for MERS, its records are also a mess,” said Thigpen. “The system is broken and it needs to be fixed. We’re telling MERS and the banks: you broke it, you fix it.”
Here’s the complaint, and there’s additional information at this mini-site. A couple things are interesting about the suit. First of all, Thigpen is getting assistance from Talcott Franklin, the law firm which has been rounding up investors to pursue repurchase cases against the banks. So he’s accessing a great deal of knowledge there. Second, among the penalties sought in the suit, Thigpen wants a special master to oversee an audit of mortgage documents at his office and to correct them.
The suit dates the recording of land titles at a public office in North Carolina all the way back to 1664. So we’re talking about banks overturning over 300 years of precedent in the furtherance of avoiding recording fees by creating their own database, which they summarily screwed up. Here’s a list of all the problems with maintaining an inaccurate registry, from the complaint:
a. Without available, orderly, and accurate records, landowners can lose their property as a result of illegal foreclosures.
b. Without available, orderly, and accurate records, landowners can be deprived of the ability to discover and remedy title defects.
c. Without available, orderly, and accurate records, landowners can be deprived of the ability to buy and sell property.
d. Without available, orderly, and accurate records, mortgage holders’ interests in property can be jeopardized.
e. Without available, orderly, and accurate records, potential purchasers cannot obtain financing to purchase property and/or risk loss of any property purchased.
So this is about more than just vengeance or justice, it’s about fixing a broken property system in the United States that puts the entire economy at risk. And the MERS system, which is inherently unreliable and which rests on novel and in many cases unproven legal theories, has broken that system, make no mistake.
Thigpen puts the evidence in his office to good use here, and he seeks not just a payout but a remedy. He says in the suit that he cannot perform his duties as register of deeds under the current circumstances. Furthermore, “The cost to Guilford County to identify impaired chains of title and repair those impaired chains of title – even if it were possible without the Defendants’ cooperation – would vastly exceed the budget for the Register of Deeds.” Basically, he wants the banks to create and pay for a Special Master to look through every document in his office, and cure all defects. There would be other damages incurred as well, but that’s his main goal.
Be sure to check pages 46-47 of the complaint for all the wildly different signatures of “Linda Green” and “Christine Baldwin.”




43 Comments

Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About FDL News Desk
Thanks, Jeff Thigpen- if only there were more of you!
I don’t know if Jeff Thigpen is a descendant of the long line of well-respected Thigpens of NC of which I am aware, but his stand on this mess indicates that he is. Carry on, Jeff!
This is good news, indeed.
And it is the counties that are hit hard – with such a “system” as MERS “reporting” on the title, many counties across the USA are missing lots of title transfer fees.
MERS should be considered a “mis-system” and should be made to do the job properly.
Good luck with this, Mr Thigpen.
And where are the County Recorders in all the counties of CA?
Nowhere to be found.
Cowardly assholes.
Grind away, wheels of justice in small counties across the land! This is one issue that’s as plain as my purple dyed finger (I wish.) Surely Amy, you can step back from analyzing women’s issues for just a moment and give this hero your attention for the hour. Women own (or thought they did) houses too.
Thank you David. I may sleep tonight.
To date, Jeff Thigpen is the only person possessed of sufficient moral compass and the essential honorable integrity to bring actual light and the possibility of meaningful consequence to the criminal actors whom the political class, including the media, has chosen to protect and reward for behaviors which the federal government of this nation knows full well are NOT in accordance with moral principle, with what is right, to the dire consequence of the Rule of Law, to civil society, and to the people of this nation.
Thank you, Jeff Thigpen.
DW
What does it say when a Register of Deeds would seem to be the only public official willing to hold the banksters accountable. One can only wonder where Eric Holder is.
Thigpen seems like he’s not in the veal pen.
I’ve been reading U.S. history. Current crop of assholes will not do well in the history books.
From the Thigpen filing (line 72, page 26) this sentence caputures the problem inherent in the Registry of Deeds nationwide (even before any foreclosure action):
Why doesn’t FDL encourage all US homeowners, current on their mortgages, to demand from their Servicers and from their local Register of Deeds, a demand that the owner of the promissory note and mortgage identify themselves.
John O’Brien, Registrar of Deeds in Massachusetts’ Essex County, Southern District has such form letters for his constituents.
Here’s a comment I left at emptywheel.net in 2011 that describes exactly this plan:
http://www.emptywheel.net/2011/12/01/government-establishes-task-force-to-combat-hamp-scams-but-not-foreclosure-scams/#comment-328524
Sorry for the (likely) dumb question – but is MERS still extant and still being used? Did the Schneiderman cave (and whatever other feints) have no operational effect on this deliberately-created-to-facilitate-crime entity?
Sixty five million loans are in the MERS system. Sixty five million property titles are affected. One Register in one County cares.
Here’s the John OBrien form letter from 2011 (in case you don’t feel like clicking on the link). Update the letter for your purposes.
Form Letter to demand the name of the owner of your mortgage and promissory note:
Today’s date
Loan Servicer Name
Address
City, State Zip
RE: Borrower’s Name
Property Address
Loan Number (from monthly statement)
Originating Bank
Date loan was originated
QUALIFIED WRITTEN REQUEST
Dear Sir/Madam:
Please accept this letter as a Qualified Written Request (“QWR”) pursuant to the Real Estate Settlement Procedures Act (“RESPA”) at 12 U.S.C. 2605(e) as amended (“RESPA”).
The requests made hereunder are directed to you as my loan servicer. These requests relate directly to the servicing of my loan insofar as you, as the loan servicer, cannot lawfully be servicing a loan that cannot be shown to be legally owned by an identified person or entity.
In the reported news, any banks and mortgage companies have been accused of being involved in predatory lending and servicing schemes. Such matters are currently being investigated by federal and state authorities in all 50 states. As a citizen, I am extremely concerned about such practices by anyone, let alone my own mortgage company or anyone who may hold a beneficial interest in my loan.
I am worried that potential fraudulent and deceptive practices by unscrupulous banks, loan servicers and foreclosure mill attorneys involving the sale and transfer of mortgage servicing rights; deceptive and fraudulent servicing practices to enhance balance sheets; deceptive, abusive and fraudulent accounting tricks which may involve my mortgage account and/or any alleged debt or payments for which I may be legally obligated.
To independently validate my concerns and in accordance with the applicable law stated herein, please respond to the following requests:
1.) Please fully identify the owner of my loan by name, address and phone number.
The “owner” of my loan shall be defined as the person or entity that purports to be lawfully entitled to the payments due under any promissory note that I allegedly signed when the loan was originated. If the “owner” is a so-called “securitized trust”, please identify:
a.) the name of the specific trust in which my loan is supposedly “pooled” (and not simply the name of the Trustee);
b.) the CUSIP number for the trust; and
c.) the specific date my loan was sold into said trust.
2.) Please provide a certified copy of my promissory note in its current condition showing all endorsements and/or allonges that show that the purported “owner” of my loan maintains legal “holder in due course” status under M.G.L. c. 106, s. 3-302 as of today’s date.
3.) Please fully identify the current holder of my mortgage by name, address and phone number.
a. If my mortgage is a MERS-designated mortgage, please identify the principal for whom MERS purports to act and provide written proof of the authorization of MERS to act for the lender with respect to my mortgage;
b. Please send me a MERS Summary Report, also referred to as a MERS Milestone Report showing me all transfers of servicing rights and beneficial interest rights;
c. If my mortgage has been assigned to another person or entity at any time, please provide certified copies of each and every assignment of the mortgage and advise whether or not such assignment was recorded on the public land records;
d. If my mortgage is a MERS designated mortgage, please confirm or deny whether my promissory note was sold separately from my mortgage obligation and identify;
i. Each and every party that purchased my promissory note or any interest;
ii. The date upon which any such purchase(s) took place;
iii. The amount of consideration paid for my promissory note.
As you know, RESPA – as recently amended – requires written acknowledgement of the receipt of this QWR letter within five (5) days and a substantive response to the requested information within thirty (30) days. A failure to comply with this request may result in fines of up to $2,000.00 plus my attorney’s fees and costs.
I hereby reserve any and all rights to make additional requests for information and to bring additional claims against any parties involved with my loan.
You are also advised hereunder that to the extent that you or the “owner” of my loan may allege to be protected by any applicable statute(s) of limitation(s) with regard to any claims I may have for violations of state or federal law under the loan above-referenced, including my ability to rescind the loan transaction under applicable law, that any such claims are alleged to not be fully “discoverable” until full documentation is provided hereunder. I therefore reserve all rights to any and all claims, including rescission, until examination of the documents can be completed.
Thank you for your prompt attention to this matter.
Sincerely,
Borrower
Obviously OBrien refers to Massachusetts law here (M.G.L. c. 106, s. 3-302), so adjust the letter to reflect the local law or state law for your area.
Here is Mr. Thigpen’s email address.
Send him a kind word, he’ll need it. The banks won’t take this assault on their domain without a fight.
First they’ll deny any wrong doing, then they will assault his integrity, then they will make up bad things about him. Hopefully, it won’t go any farther than that.
He WILL have his day in court.
Where are all the other Register of Deeds from across the USA?
Fricking cowards. Bought and sold…
http://www.co.guilford.nc.us/departments/rod/contact.php
Perhaps the letter to your Registrar of Deeds could be a carbon copy of the letter to your servicer plus a copy of the Thigpen Legal Complaint PDF with an admonishment from you that you do NOT want MERS to be accepted as a valid entity attached to your property listing in the Registrar of Deeds. Demand that the Registrar of Deeds seek the actual owner and reject robosigned forms from the Servicers.
Maybe we don’t need to wait for a lawsuit result to begin the process of change.
Does class action apply here? If so, it will be a lawyer’s gold mine and a bankster’s nightmare, and nothing the Obama administration can pass through Congress can stop it.
I have been telling everyone I know who is contemplating purchasing a house in the US of A to do just that. Do not buy until you have ironclad proof that the title has not been fucked up by a bank.
I called up the woman at my local bank were I took out my first (and second mortgage). She was nonplussed about the MERS issue a year ago. “That’s why you buy title insurance,” was her pat reply.
I had bought title insurance in 2007 but I tried in vain to bring her up to speed with level of corruption and fraud in the housing market–fraud as ‘a business model’ which was therefore beyond what AIG or any insurer could cover for accidental occasional defects in a title.
She acted as if this was all news to her and said she’d have to learn more about it later on her own…
I tell people not to be lulled into false security with title insurance. Demand a chain of title. Find out about robosigners if MERS has touched the mortgage listing at any point.
pdaly,
I assume (at my peril!) that there would be substantial financial charges for said information??
Like GWB, these rats could care less about the “verdict of history.” Personally I’d much prefer a verdict sooner rather than later.
OT but concerning Cameron’s and Obama’s pledge to “stay the course” here’s something to ponder. In the grand scheme of things nothing is actually OT, it’s all interconnected.
http://www.youtube.com/watch?v=uXnJVkEX8O4
I agree.
However, sooner won’t happen, so I was just reflecting it will have to be later, if at all. Neocons work hard to get Raygun’s historic rep set in stone.
Why do I have a feeling that there will be another “settlement” with the banksters waiving their liability on this issue?
Call me a cynic!
That I don’t know. I assume charges, if any, would be determined by the law that requires servicers to tell you information that you are entitled to know.
As O’Brien’s form letter above makes clear, by law Servicers must know the person/entity for whom they are demanding from you and collecting from you the mortgage payments each month. If that name changes, because your mortgage was sold, then the Servicer is supposed to know that, too.
In any case, I’d be happy to pay a little to get the MERS banks sweating bullets.
Thank you pdaly and Knut. I also have been warning people not to buy homes. I was in the mortgage business for 25 years and this line of thinking is going against everything I believed in. I left in ’98 and am beyond outraged about all that happened after I left. No one in the MERS system has a clean title and that includes me. I feel very betrayed by the people I worked with that were in on this and took advantage of my friends and family. I dropped the ball in following thru on the loans that were made because never in my wildest imagination could I have dreamed that this kind of fraud would happen. One of my family members is a clear victim and I have the proof thanks to the QWR that I helped write. The servicer did not respond with the required info and further stated that they didn’t have to. This is very personal to me. The usg has pretty much told them they don’t have too either with “The Settlement”.
Along that vein, I’d like to start a petition to change the Washington National Airport back to its original name.
See, I did it already! (Some people have started calling it the Reagan National Airport). Not I.
No, there is no charge for this info. They don’t give it to you anyway no matter the fines and broken regs.
Thanks for the info. Is there any way you know of to put pressure on local banks and registry of deeds?
Further, no one from the servicer SIGNS their name. No one. All correspondence from them is unsigned. That fact alone is quite telling to me.
I refuse to call it Reagan too.
Such a shallow senile man.
Great communicator. Gah. Just finished a chapter on ratification of constitution and read about Patrick Henry, who argued against (once for an entire day) and lost.
Reagan was full of useless bromides.
I have sent copies of robo-signed docs to my Wa.St. ag, and numerous other parties. My own congressman has recorded docs that are robo-signed and not even notarized. I have not contacted my local registrar as they have a convenient stamp on every doc that states that are not responsible as to the truth on the doc being recorded..quite convenient. Meanwhile my daily paper if full of fraudclosures being filed by MERS in my non-judicial state. I hardly think the local sheriff knows or care what MERS is.
I’ve never referred to National as “Reagan” either. As to bromides, they sure do sell but when a majority of the population reads at no more than an 8th grade level one can see why.
My Q about history is that the hagiographers of the ff rave about how the pop read Federalist papers. I have my doubts. They weren’t educated either, had much lower standard of living in the sense of having to work much harder to eke out a living. When I’m done with the book I’m currently on, I’m going to reread Zinn to see if he has any insight into that matter.
Here’s a little something that might pick up one’s spirit. The country needs more minstrels.
http://www.youtube.com/watch?v=s76mkRRGPZA&feature=endscreen&NR=1
I like that ! Thanks.
Hate to admit it buy I’ve yet to read Zinn. When I finish “To the Finland Station” I really need to pick it up.
I was going (and hope still to) write a diary with Zinn’s version of U.S. history. Have a 1/2 draft on my computer. Got sidetracked by a whole bunch of stuff, falling under the general category of gaining perspective in a subject in which I have little previous knowledge (elementary & HS U.S. history long forgotten). Loved Zinn & can spew the short version with the push of a button. But there is another side to the story too.
Prolly my ego is getting in the way of thinking I, an amateur, can figure out the appropriate happy medium betw Zinn vs. hagiographers & mythmakers. But I’ll give it the book I’m on, a reread of Zinn, then try again.
I sent the RESPA letter to my servicer (GMAC). Their response to the MERS inquiry was basically: Your mortgage is registered with MERS. Contact them for more info. They might as well have said, “We don’t got to show you no stinking allonges.”
Thank you waynec for http://www.co.guilford.nc.us/departments/rod/contact.php. My letter to him is included below.
Thank you pdaly. Your information is much appreciated.
“Mr. Thigpen,
Thank you for your current work in dealing with the massive foreclosure fraud present not only in North Carolina, but throughout the nation. The state AGs, all 50, are currently in the pocket of the banks. As are the state’s and federal government. Personally, I do not see this beacon of integrity and honesty that your courageous actions represent, amounting to much for the simple reason they own the place. But sir, I stand with respect and admiration at your actions.
Although you have shown a level of integrity that has become a rarity these days in this country, I would remind you that YOU ARE ALONE. The 50 AGs, the state and fed governments, are all owned by the banks. In Florida, witnessing massive problems due to mortgage fraud and perjury in a court of law, the state AG is using the state office to actually defend the banks and judges are rubber-stamping this fraud for the banks. Also, you sir are the only register of deeds, IN THIS ENTIRE COUNTRY, to have done this. I do not see others in your line of work following in your footsteps. They haven’t yet, and in this America, they will not.
In this current America, what the banks do is “legal”, and sir, what you do is the “problem”. Please take care of yourself and your family. They will eventually come for you and yours. If they haven’t already. Please, be careful. Take that extra precaution. Stay in well-lit areas. Hire security if you can. And please remember that in this America, they own the place. YOU ARE ALONE sir. They bought everything and everyone else. Therefore, although I would love to see this play out, I caution you and please know it’s OK to let this go when they come for you. Everyone else was bought out or was intimidated. There is no shame in doing so yourself for you safety or that of your family. These aren’t the “good guys”. These are very bad people who do very bad things. They have no issues with doing the same to you and yours. There is no shame in this. This is the “new” America. Everyone else in positions of power already sold out. Look at the 50 state AGs as the perfect example. You know this. You’ve seen it. So please remember, in the “new” America, it’s OK to sell out. And if it means keeping your family safe, do it. They already own the corporate media and judges, neither of whom will allow this to go anywhere.
Thank you for your work. But stay safe. In the “new” America this isn’t paranoia, it’s common sense. Do not be alone, ever. They have your phones and internet bugged. As well as your associates and your family. All of them. It’s all perfectly legal in the “new” America. Please keep safe.
Sincerely, Anonymous for my own safety”
Why did you send that letter?
Mixed message, much?
“The suit cites as evidence, Thigpen’s identification of over 6,100 mortgage documents (4,519 of those by DocX) which were filed with the Register of Deeds and signed in the names of known robo-signer aliases”...
There ought to be a law against that! Oh wait…
“Whoever makes any false entry in any book, report, or statement of such bank, company, branch, agency, or organization with intent to injure or defraud such bank, company, branch, agency, or organization, or any other company, body politic or corporate or any individual person.… Shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.”18 USC 1005
http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=us&vol=491&invol=58
And what praytell is a “body politic or corporate”? I’ll give you an example.
“Guilford County (the “County”) is a body politic and corporate, and is a county of the State of North Carolina.”
So to do this math for this one county, 6100 federal counts of bank fraud carries a maximum criminal penalty of $6.1 billion in fines and 183,000 man years in prison. RICO counts (such a superabundance of felonies is the badge of a vast conspiracy) would boost even those numbers, and that’s for one county in one state. Hell, the the puppet Emperor of Manchukuo was probably a tougher negotiator with the Japanese Army than the DOJ and the state AGs were with the banks.
Because there’s no reason for him to sacrifice himself for something that will never amount to anything.
All 50 state AGs sold out. He’s got no chance.