U.S. Mortgage Fraud: The Next Chapter

VANCOUVER (Bullions Bull Canada) -- In the first decade of this century, the Wall Street crime syndicate perpetrated the largest crime-wave in human history in terms of the number of acts of fraud: serial mortgage fraud.

This initial crime wave was conducted in order to facilitate an even larger crime wave (by dollar value): the "securitization" of these fraud-tainted mortgages.

None of the ring leaders of this crime wave have even been charged, let alone prosecuted, let alone convicted. An estimated 60+ million U.S. mortgages (more than half of all outstanding mortgages) have been tainted by Wall Street mortgage fraud primarily through the invalid/illegal use of a private "land registry" known as MERS, or Mortgage Electronic Registration System, as opposed to the official/legitimate land title registry required by law.

The Wall Street fraud factories never even sought permission to bypass official registry requirements. They simply collectively and unilaterally flouted the law, partially to "streamline" (i.e. evade) processing fees and requirements, but mostly to facilitate the $trillions in mortgage-related fraud Wall Street built atop its original crime wave.

It's important to take a moment here to note that we are talking about "fraud" on numerous levels. The fraudulent registering of approximately 60 million MERS mortgages was only one facet of this fraud. There were millions upon millions of other acts of fraud connected with these mortgages.

The fraud chain began with the "liars' loans" -- primarily instigated at the lenders' end -- where mortgage applicants were assured no one told the truth on these documents, and thus applicants were free to fill in whatever numbers the mortgage-broker told them would help to facilitate purchase.

On top of the lliars' loans, on top of the 60 million fraudulent entries in the MERS pseudo-registry, the Wall Street crime syndicate piled on tens of millions of additional acts of fraud.

This primarily revolves around the robo-signing scandal: serial, deliberate fraud, where the Wall Street crime syndicate literally manufactured fraudulent documents to create entirely separate, fallacious paper trails for these already fraud-tainted mortgages. Indeed, some of the individual foot soldiers for these fraud factories are known to have committed thousands of acts of fraud per month.

The corrupt U.S. judiciary has willfully blinded itself to this organized, serial fraud, rubber-stamping hundreds of thousands (millions?) of illegitimate foreclosures, with the result being that the Big Banks illegitimately took possession of these properties based on known, fraudulent documents and without ever proving they had the right to take possession of these properties in accordance with the law.

It is in this context that we must view the headline from the propagandists at Reuters: Bank of America, Other Banks Move Closer to Ending Mortgage Mess.

Obviously the initial paragraphs of this article indicate that nothing has "ended" regarding this "mortgage mess." Sixty million properties are still tainted with MERS fraud alone. Many of those properties have been tainted with multiple acts of additional fraud, and some properties outside of the MERS registry have also been tainted with this additional fraud.

This takes place in a land registry system that is supposed to guarantee "perfect title" to any/every bona fide purchaser. Where even the tiniest flaw is discovered, this mandates a thorough litigation: to unearth each/every act of fraud, trace back the land title to a point in time before it was tainted with fraud, and to thus "fix" the title at that time.

What this means in practice is that many supposed U.S. "homeowners" will be told they do not own the home for which they just finished paying. If these cheated homeowners are able to identify the specific perpetrators of the original fraud, if those perpetrators have not already been bankrupted by their serial fraud, if the corrupt U.S. judiciary actually does its duty, and if they can afford to hire a lawyer and fight a battle in court, these would-be homeowners may actually end up with the property they thought they had purchased. Or they could end up with nothing.

With these 60+ million fraud-tainted properties having now been swept under the carpet by the U.S. government, the U.S. judiciary, and, of course, the Big Banks themselves, what did Reuters mean when it talked about "an end to the mortgage mess"?

It meant that its friends, the Big Banks, were now on the verge of obtaining nearly complete legal immunity to the largest crime wave in human history.

In other words, many innocent purchasers of these fraud-tainted properties will be told they are barred by law from suing the only parties who can compensate them for the properties they thought they had purchased, guaranteeing that many (most?) of these victims will never be able to obtain either the property they thought they had purchased or the money they paid to purchase that property.

Worse still is simply the unimaginable quantity of these fraud-tainted properties. If every U.S. court with jurisdiction to try such cases ceased to perform any other litigation, and devoted 100% of their time/energy/resources to fixing these fraud-tainted properties, it is a virtual certainty that no American currently alive today would see a real "end" to Wall Street mortgage fraud.

Understand that because of the (additional) serial acts of fraud attached to the 60+ million original acts of mortgage fraud (primarily robo-signing fraud) that most of these litigations will be slow, arduous and time-consuming. This reality is a further condemnation of the U.S. judiciary, where these fraud-accomplices sometimes rubber-stamped dozens of illegitimate foreclosures in a single day.

Obviously, nothing at all has "ended" with respect to U.S. mortgage fraud other than most of the legal/criminal liability for the original perpetrators of the lion's share of this fraud. In fact, U.S. mortgage-fraud has entered a new era we can simply call "buyer beware."

If one was to purchase any U.S. property that has had a mortgage against it at any time in the last decade, the odds are somewhat over 50% that the "purchaser" will not have legal and bona fide ownership of that property -- meaning their "home" could be taken from them at any time via some future litigation.

The end to (most) Big Bank liability means these "homeowners" could have their properties taken from them at any time and be legally prevented from even attempting to seek compensation for losing their homes.

Thus, as Reuters dubs the next chapter of U.S. mortgage-fraud as "the end of mortgage fraud," we have learned one thing: We've learned what the media oligopoly actually represents -- the Big Banks. If they are in the clear, then in the eyes of Reuters and the rest of the corporate media it's "problem solved."

Meanwhile, for ordinary Americans the era of "buyer beware" for all would-be homeowners has just begun. Unless you want to hire a lawyer to conduct some exhaustive (and very expensive) title verification prior to purchasing, the majority of Americans "buying a home" today are doing little more than rolling the dice, and praying they don't end up with snake eyes.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

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