Cathy Williquette-‐Lindsay, Register of Deeds, Brown County

Scott Moore, Vice President, Fidlar Technologies

Founded by Fannie Mae, Freddie Mac, ALTA, MBA. MERS is a membership organization similar to that of a co-‐op. MERS markets to banks of all sizes.

Facilitate securitization through speedier transfers. Save recording fees

MERS is an electronic database which contains mortgage specific records. 60% of all mortgages in the US are within the MERS system This database allows banks to sell/buy mortgages in bulk in an expedient way. If MERS holds 60% of US mortgages, how many people must they employ??? Just over 80

Mortgage Holder: The actual company that is in possession of your mortgage. Within MERS, this can be very difficult to find. Mortgage Servicer: Company you send money to. Often, within MERS system, arrangements are in place where Servicer

Mortgages are recorded When mortgages is initially sold, an assignment is filed at County where property is located Each subsequent time mortgage is sold, assignments are filed This allows for:

Clear chain-‐of-‐title Allows homeowner to distinguish between Mortgage Holder and Mortgage Servicer

Mortgage is recorded in the county where the property sits. When mortgage is initially sold (typically at closing table), assignment is filed and recorded Now, the mortgage is in the MERS system and receives an 18 digit identification number Each time the mortgage is sold within the MERS system, no assignments are recorded

On average, each mortgage is sold 4 times within the MERS system

https://www.mers-‐servicerid.org/sis/index.jsp

This is the MERS website that purports to provide transparency to the public

Cash-‐out Re-‐ These people became a hiccup away from losing their homes

Balloon mortgages Interest-‐only loans Unscrupulous mortgage bankers

Inflated income

Adjustable mortgages converting Homes often underwater at conversion

Especially problematic in judicial foreclosure states

Bank wishes to foreclose on property Banks lawyers approach Judge to obtain authorization to do so Judge looks at paperwork to confirm that bank has property interest to foreclose. Judge does not see paperwork trail that supports property interest

Lawyer communicates problem to bank Bank hires DocX or NTC to create document trail. DocX is overwhelmed with volume so hires robo-‐signers

Certifies each robo-‐signer as a Corporate Officer.

Documents go back to bank, then to lawyer who goes to judge and gets approval to foreclose.

own.

How wide-‐spread was robo-‐signing? Study:

60% of documents recorded in WI Looked specifically at docs recorded by DocX From 2005 2009, just over 75% of the docs had robo-‐signed names

Linda Green Crystal Moore Bryan Bly Kimberly Porter Keith Seidel Andrew Harmon Christie Baldwin Linda Burton Michael Nadeau Brent Bagley Beth Cottrell Pat Kingston Rita Knowles Biengmor Phidavanh Robert Rybarczy

Muriel Adams Linda Thoresen Marshall Isaacs Whitney Cook Jessica Leete Jessica Ohde Korell Harp Barbara Hindmain Tom Croft Stacy Spohn Kathy Smith Michelle Green John Cottrell Mary Cook Kathy Wright

http://www.youtube.com/watch?v=IKwB1BaFu9Q

Virtually impossible to determine who owns the loan. With this, seeking mortgage modifications is very difficult Quieting the title issue Potential difficulty in selling property.

Immediate loss of transparency of land records

Calls and concerns from frustrated citizens Significant reduction in county revenue

Brown County Example

Committee formed in response to crisis Tracking the nationwide activity with regards to MERS

Committee will eventually advise on recommendations

>400 legal cases against MERS

Is a waste of time. Working for day-‐forward legislation requiring that MERS record Assignments has momentum Suing robo-‐signing company DocX worked in MO to the tune of $2,000,000

The MERS concept has given birth to other ideas, all aimed at taking control and revenue away from local government

Global Debt Registry Statewide UCC recording systems Statewide recording system for articles of incorporation Federal Lien Registry Federal Mortgage Registration System

2011 Gallup Poll Question asked for confidence in levels of

government. 31% Federal & State Government 68% County Government

Based on Gallup survey, your constituents place trust and confidence in you. MERS and others like them are aiming to take control away from local government. Involvement works. Partner with your ROD to promote local government.

Cathy Williquette-‐Lindsay Brown County Register of Deeds Scott Moore Vice President, Fidlar Technologies