MERS In Class Action Suit

Posted By on October 18, 2010

It’s likely that most informed people will agree with the 3 points made below.  Our Guess is that more class actions are coming, it’s just a matter of time!

Class action lawsuit against the MERS system for mortgage holdings
 

A class action lawsuit by citizens vs MERS and numerous banks depicting fraud and unfair practices has been filed in the state courts of Kentucky. )

1. Sub-Prime Mortgages were made designed to default.  Many were, Agree

2. These Mortgages are packaged into Mortgage Backed Securities (MBS)    and sold to ‘investors’.    Agree

3. MBS packagers and Investors take out Credit Default Swaps (Insurance – remember AIG?) that pays off up to 10x the mortgage amount upon default. Agree

Mortgage Electronic Registration Systems (MERS) is a privately held company that operates an electronic registry designed to track servicing rights and ownership of mortgage loans in the United States.

Class Action Lawsuit:  In law a class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court in which a defendant is being sued.  The ancestor of the class action was what modern observers call “group litigation,” and was common in medieval England from about 1200 onward.

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