“Testing”- Document Authenticity

READ CAREFULLY…

• The mortgage market’s continued ability to lend money relies on the liquidity of promissory notes secured by real property.
• Paper promissory notes are endorsed “in blank”so that whoever has “possession”of the note is considered a holder, holder in due course, or purchaser.

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If you on SPERS.org’s site there is also some information to be looked at…like power point presentation and some pdf files. Click below

SPERS.ORG

Via: Brian K. Korte, Esq.

http://www.signaturemachine.com/products/demo_page.htm

DinSFLA Here: Now if we just put these time frames such as ’1999′ with all that is happening today we arrive to some answers…Don’t we?

Electronic communications make it possible to conduct old transactions in new forms.  Some of the oldest kinds of transactions governed by law are transactions in real estate:  for example, sales, leases and mortgages.  In the Middle Ages transactions in real estate were conducted symbolically, without paper or signatures.  Writing, printing and more universal literacy brought paper deeds, mortgages and leases, memorialized by words on paper with manual signatures.   These were filed in public records to establish who had rightful title to any piece of land.  Several centuries have gone by since that initial migration to the then-new technology of paper documents and manual signatures.  A new technology of computers, software to run them, and electronic communications has come to replace paper.  The law of real property must now make a transition to accommodate the new technology.  The efficiency of real estate markets makes this imminently necessary.

This long dependence on paper, however, casts up certain barriers to using electronic communications to carry on real estate transactions.  The law of the states of the United States has many “statute of fraud” requirements that inhibit the use of electronic communications.  Statute of fraud requirements put total and express reliance upon paper documents and manual signatures to make transactions enforceable.  No paper, no enforcement.  These same requirements have also made it more difficult to develop electronic analogues to transactions in paper that are equally enforceable.

The first step to remedy the problem took place in 1999 when the Uniform Law Commissioners promulgated the Uniform Electronic Transactions Act (UETA).  This act adjusted statute of fraud provisions to include electronic “records” and “signatures” for the memorialization of all kinds of transactions, including basic transactions in real estate.  It is possible to have sale contracts, mortgage instruments (in whatever form a jurisdiction uses) and promissory notes memorialized in electronic form with electronic signatures that will now be treated the equal of the same paper documents with manual signatures.  This is the result of the widespread enactment of UETA and of the subsequent enactment of the Electronic Signatures in Global and National Commerce Act (E-Sign) by Congress.

Real estate documents must be recorded on public records to be effective.  Recording takes place in most states in a county office devoted to keeping these records.  Recording protects current interests in real estate by clarifying who holds those interests.  The chain of title leading to the current title-holder, meaning the historic record of documents relating to transactions for a specific piece of real estate, establishes the marketability of that piece of real estate by the current owner of interests in it.  The real estate records establish this chain of title.  State law governs these local recording offices, and there are requirements in the law of every state relating to the originality and authenticity of paper documents that are presented for recording.  UETA included optional provisions dealing with governmental authority, including that of local governments, to accept and utilize electronic records.  However, not all states adopted these optional provisions, and confusion still persisted whether these provisions, coupled with the rest of UETA, authorized recordation of electronic records.

The Uniform Real Property Electronic Recording Act (URPERA) removes any doubt with regard to the ability of a local recording office to accept and otherwise process electronic documents and signatures for recording.  Further, there must be an orderly conversion of every recording office in the United States for electronic recording to become accepted universally.  That will be a complex process, but it needs a starting point in the law.  URPERA, promulgated by the Uniform Law Commissioners in 2004, provides that essential start.

The act does three fairly simple things that will have monumental effect.  First, it establishes that any requirement for originality, for a paper document or for a writing manually signed before it may be recorded, is satisfied by an electronic document and signature.  This is essentially an express extension of the principles of UETA and E-Sign to the specific requirements for recording documents relating to real estate transactions in any state.  Second, it establishes what standards a recording office must follow and what it must do to make electronic recording effective.  For example, the office must comply with standards set by the board established in a state to set them.  It must set up a system for searching and retrieving electronic documents.  There are a minimum group of requirements established in URPERA.  Third, URPERA establishes the board that sets statewide standards and requires it to set uniform standards that must be implemented in every recording office.

These may be simple steps in the law, but the entire process of implementing electronic recording of electronic real estate documents will be complex from state to state.  Inserting URPERA in the law of a state requires careful scrutiny of its real estate law.  If paper documents are effective, for example, when they are time-stamped when delivered to a recording office, when should electronic documents that may be delivered electronically when an office is closed be considered effective?  Answers to questions like this one will take some work and some complex decisions as URPERA is considered for enactment in any state.

Notwithstanding this need for careful effort, it is important to make the start on electronic recording of real estate documents.  Real estate transactions involve billions of dollars in the United States.  The efficiency of real estate markets depends upon the adoption of technology to make them faster and more competitive.  After UETA and E-Sign, the key is URPERA.  Every state needs to consider it as soon as possible.

More info…ElectronicRecording.org

RELATED ARTICLE:

Electronic Property Document Recording (ERDS)

By David Ellis, staff writer July 29, 2010: 3:57 PM ET

NEW YORK (CNNMoney.com) — Citigroup said Thursday it would pay $73 million to settle charges by the Securities and Exchange Commission that the bank, as well as two of its executives, misled investors about the company’s exposure to the subprime mortgage market.

Wall Street’s top regulator said Citigroup repeatedly made misleading statements in investor presentations and in public filings about the actual size of assets it controlled that were backed by subprime mortgages.

Between July and mid-October 2007, the company maintained its holdings of what have now been dubbed “toxic assets”, stood at $13 billion, when in fact the number was closer to $50 billion, according to the SEC.

“The rules of financial disclosure are simple — if you choose to speak, speak in full and not in half-truths,” Robert Khuzami, director of the SEC’s Division of Enforcement, said in a statement.

Continue reading….CNN

DinSFLA here: MEDIATION without the true lenders disclosed may be an issue later…these mills have no right to play middlemen to no one! You must make sure who the real parties are before, during and after foreclosure!

Florida Default Group is emailing foreclosure defense attorneys with emails stating “Per your request, conciliation will be scheduled for your client…” that is how the are scamming even REPRESENTED defendants out of their right to a third party mediation (not that they are going to work anyway).

As I myself have witnessed on many occasions, some mill attorneys, or LOCAL COUNSEL, like Peter Porcaro local counsel for Stern’s office, bring pro se defendants out of the courtroom, smooth talk them into an agreement where there is an “extended sale date 120 days into the future, and an agreement for “conciliation” (which differs from mediation because mediation for primary residences cost the plaintiff $750 each and also there is a mediator) and a waiver of mediation. Conciliation is at no cost to the plaintiff and is between the two parties without a mediator. There is no explanation of mediation vs conciliation and no telling that the FL Supreme Court mandates mediation unless it is waived. There is no acknowledgment of months if not years of frustrated attempts at “conciliation” in terms of loan mods or short sales or deeds in lieu and how the defendants have a right to mediation. If any issues regarding the veracity and/or authenticity of the documents in the court file are raised, the answer given in these hallway dirty dealings, is “I’m not involved with that. I don’t work for their office.”

The same thing happens with all the mills. Attached is what the defendant in a Marshall Watson case walked away with…..just read it to see …………

See for yourselves. Stand outside of courtroom 10H or the other “foreclosure mill courtrooms” and watch this play out.

Sincerely,
Lisa Epstein
ForeclosureHamlet.org

DinSFLA here: This might make it harder to detect fraud and this will eliminate paper PERIOD. FOR GOOD! This MUST STOP.

BNY Mellon Corporate Trust Launches Innovative eVault Service

New service transforms paper-based process of tracking and storing mortgage documents

NEW YORK, July 28 /PRNewswire-FirstCall/ — BNY Mellon Corporate Trust has introduced an eVault service that will allow it to receive, process and store electronic mortgage documents on behalf of its clients, significantly improving all stages in the life-cycle of a loan.

eVault is an industry-changing innovation that enables the company to provide certification, safekeeping and status reporting for electronically created and signed mortgage documents.  By transforming the current paper-based process into one that is completely electronic, eVault boosts efficiency, creates transparency by making it easier for participants to see data and exchange information and, since the need for couriers and manual entry have been eliminated, allows faster delivery to the secondary market.

“We’re excited to be redefining the role of a document custodian through our introduction of eVault, a service that changes how mortgage documents are generated and handled,” said Rick Stanley, executive vice president and head of structured credit at BNY Mellon Corporate Trust.  ”Documents no longer have to be printed on paper to be signed, and they don’t have to be manually shipped or physically stored.  By making the mortgage process fully electronic, eVault allows lenders to reduce their costs through automation.”

The move toward a paperless environment is one that is supported and being driven by the mortgage industry itself, as demonstrated by the creation of Mortgage Electronic Registration Systems (MERS), an electronic way to easily identify and track individual mortgage loans and the information related to those loans.

“By using electronic commerce, eVault eliminates paper and helps streamline the mortgage process, which is one of the goals of MERS,” Stanley added.  “As one of the industry’s largest document custodians, we will work with MERS and the other utilities driving this electronic movement to continue to develop what the custodial role should be in the future.”

The company has partnered with eSignSystems, a leading provider of lifecycle management tools for eMortgage processing and other legally binding electronic transactions that provides full integration with MERS and ensures documents remain free from tampering.  eSignSystems is a division of Wave Systems Corp. (Nasdaq: WAVX).

BNY Mellon Corporate Trust services $12 trillion in outstanding debt from 61 locations in 20 countries. Its clients include governments and their agencies, multinational corporations, financial institutions and other entities that access the global debt capital markets. The corporate trust business utilizes its global footprint and expertise to deliver a full range of issuer and related investor services and develop customized and market-driven solutions. Its range of core services includes debt trustee, paying agency, escrow and other fiduciary offerings.

Corporate trust providers are appointed by corporations, municipal governments and other entities issuing debt to perform a variety of duties, including servicing and maintaining the debt issue, processing principal and interest payments for investors, representing investors in defaults, and providing value-added services for complex debt structures.

BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets.  BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team.  It has $21.8 trillion in assets under custody and administration and $1.0 trillion in assets under management, services $11.6 trillion in outstanding debt and processes global payments averaging $1.5 trillion per day.  BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK).  Additional information is available at www.bnymellon.com.

SOURCE BNY Mellon

Infowars.com
July 27, 2010

george4title

I couldn’t find statistics for local utility shut offs in my area, but I knew we would start to see more and more of this.

Houses everywhere are going vacant. People don’t say goodbye, they don’t leave a number, they just disappear. With their disappearance we add another vacant house to the street. But families living in housing without utilities is a new sight for me to behold. I spoke recently with a rep from So Cal Edison who, full time contacts residence who have had their electricity turned off due to non payment. She has a negotiator sent in and they work on a reduced payment. It’s amazing to me, that now, it is becoming acceptable in California to camp out in your home.

People are losing their homes, losing their cars and losing their dignity. How are we going to afford kids clothes and school supplies for the coming year? How can we expect families to pay for all these additional costs when the economy is in the shape it in. I ask myself this everyday.

Continue reading…INFOWARS.com

KABOOM!!! This will send out shock waves.

After last week’s lawsuit filed on behalf of investors for possible securities fraud violations against DJSP Enterprises and another pending. I present to you another Class Action filed 7/26/2010 this time against the Law Offices of David J. Stern P.A., David J. Stern and MERSCORP, Inc..

Mr. Trent totally “gets it” and in this complaint he outlines and points out what we all have a hard time piecing together.

Here are excerpts of the complaint:

Beginning in or about 1999, the Defendant Firm joined with Defendant Merscorp, Inc., and other conspirators in the fraudulent scheme and RICO enterprise herein complained of. The employees of the Defendant Firm, including many licensed attorneys, have become skilled in using the artifice of MERS to sabotage the judicial process to the detriment of borrowers, and, over the past several years, have routinely relied upon MERS to do just that.

As Stern boasted to a room of investors at a recent promotional event, recent “direct source initiatives” by the larger lenders increasingly enable the Defendant Firm, DJSP, and other entities recently formed by Stern to take mortgages “from cradle to the grave.”

The whole purpose of MERS is to allow “servicers” to pretend as if they are someone else: the “owners” of the mortgage, or the real parties in interest. In fact they are not. The standard MERS/Stern complaint contains a lie about this very subject. While the title of the standard complaint makes reference to “lost loan documents,” in the body of the standard complaint, the Defendant Firm alleges that the plaintiff is the “owner and holder” of the note and mortgage. Both cannot be true unless the words used are given new meanings.

With the oversight of Defendant Merscorp and its unknown principals, the MERS artifice and enterprise evolved into an “ultra-fictitious” entity, which can also be understood as a “meta-corporation.” To perpetuate the scheme, MERS was and is used in a way so that to the average consumer, or even legal professional, can never determine who or what was or is ultimately receiving the benefits of any mortgage payments. The conspirators set about to confuse everyone as to who owned what. They created a truly effective smokescreen which has left the public and most of the judiciary operating “in the dark” through the present time.

The preparation, filing, and prosecution of the complaints to “Foreclose Mortgage and to Enforce Lost Loan Documents” were each predicate acts in the pattern of racketeering activity herein complained of, and were actions taken in furtherance of the MERS enterprise. The actions could not have been brought by the Defendant Firm without the MERS artifice and the ability to generate any necessary “assignment” which flowed from it.

By engaging in a pattern of racketeering activity, specifically “mail or wire fraud,” the Defendants subject to this Count participated in a criminal enterprise affecting interstate commerce. In addition to the altered postmarks described below, the mail fraud is the sending of the fraudulent assignments and pleadings to the clerks of court, judges, attorneys, and defendants in foreclosure cases. These Defendants intentionally participated in a scheme to defraud others, including the Plaintiff and the other Class Members, and utilized the U.S. Mail to do so.

These documents were executed by an “Assistant Secretary” or “Vice President,” apparently of MERS. In reality, the person executing the assignments had no knowledge whatsoever of the truth of their contents, and was simply an employee of the Defendant Firm.

Altering common hardware and/or software used by the Defendant Firm so that envelopes used to mail important legal documents, such as final judgments, to defendants contain no date of mailing in the postmark and intentionally delaying in sending the mail until defendants have lost their rights. (Exhibit F). These predicate acts constitute “mail fraud.”

Here is an explanation from David J. Stern of the continuing foreclosure rout:

One of my favorite questions from one of my believers, one of my investors on the first call-in, “What inning are we in? If this was a baseball game, what inning are we in?” And my response is, we’re only in the 2nd inning. We still have 3 innings of foreclosures left, and after the foreclosures, we have 3 innings of REO liquidation and as the REO liquidations pan out, we get into the re-fi and we get into the origination.
[ . . . ]
So yeah, we’re in the 2nd inning, but guess what – when we get to the 9th inning, it’s going to be a doubleheader and we got a second game coming. So when people say, “Oh my God, the economy is bad!” I’m like, “Oh my God, it’s great.” I mean, I hate to hear people are losing their homes and credit isn’t available and credit is such that they can’t re-fi, but if you are in our niche, it’s what we do and it’s what we want to see.

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Thank you attorney Kenneth Eric Trent P.A. from Ft. Lauderdale , FL !

Dig deep enough you might find something old or something new

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Edit: From a viewer who makes it clear.

The GSE rule is: A borrower is denied equal access to government supported financial markets for seven years unless the borrower “waives” rights to challenge servicer claims? This is a direct attempt to deprive an individual of access to the legal system in order to redress grievances. This is an unconstitutional exercise of power by these quaisi-govt authorities controlled by government. If the govt cannot do that in its own name–how can it be proper to do it under a nameplate of an entity owned and controlled by the government. Aside from implications in respect of civil liberties, it is not even good financial policy for servicers and lenders to be automatically released of liability for predatory lending and collection activities. This rule can have only one effect and that is to encourage more abuses. This is tantamount to abolishing judicial oversight of lending abuses.

By: Carrie Bay 07/26/2010 DSNEWS

The court held that it “will hold a hearing to determine what sanctions if any, that may be imposed upon Steven J. Baum, P.C. for the false representations made in the petition,” as counsel for Federal Home Loan Mortgage Corp.

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By ALAN ZIBEL (AP) –

WASHINGTON — Thought the housing crisis was over? Not quite.

Despite four years of falling prices and recent signs that they were finally bottoming out, homes are expected to lose still more value in many metro areas over the next year.

Parts of the country already pummeled by the housing crisis, like Las Vegas, Phoenix and Miami, will be hit hardest. But even some places that have held up relatively well — including New York, Los Angeles and Washington, D.C. — will suffer, too.

That’s the conclusion of economists who have been reducing their estimates for home prices as the outlook for the economic recovery has darkened. The number of homes for sale or headed for foreclosure is so high that they think prices will be even lower by next July.

Because housing is such an important engine of the economy, lower prices could dim the recovery. When home values fall and people have less equity, they tend to cut back on spending. And as prices decline, potential homebuyers stay on the sidelines, slowing sales even more.

Earlier this year, analysts said they thought home prices had finally reached their low point and were ready to start rising slowly in most areas of the country. Now, they think the actual bottom could be nearly a year away.

The average home price in the Standard & Poor’s Case-Shiller index of 20 big U.S. cities is forecast to drop nearly 2 percent this year from a year earlier, according to the average estimate of more than 100 economists polled this month by MacroMarkets LLC.

That’s more pessimistic than in May, when the consensus was for prices to be nearly flat. Other, more bearish analysts think prices will sink 10 percent or more.

Price drops of more than 10 percent are expected in the Phoenix, Miami and Las Vegas areas over the next year, according to Moody’s Analytics. Those areas have already been scorched by 50 percent declines in home values.

Moody’s predicts that other areas — New York, Los Angeles, San Diego, San Francisco, Denver, Detroit, Cleveland, Minneapolis, Tampa, Fla.; and Washington D.C. — will see declines of 2 to 8 percent by next July.

Many analysts expect home prices to rise for a few months because a tax credit offered to homebuyers through April increased demand. But the gains probably won’t last. By this time next year, Moody’s expects prices in 19 of the 20 cities to have fallen.

Why further price drops for already hard-hit areas, as well as in healthier markets like New York and Los Angeles?

There’s already a glut of homes left in each area by the real estate bust, and more foreclosures are expected as Americans fall behind on mortgage payments. Foreclosures add to the supply of homes on the market, bringing down prices.

In Miami, nearly a quarter of mortgage borrowers have missed at least three months of mortgage payments or are already in foreclosure, according to Moody’s. That’s the highest level in the country. In four other Florida cities — Fort Lauderdale, Cape Coral, West Palm Beach and Naples — the proportion exceeds 15 percent. The same is true for Las Vegas.

On top of that, so-called short sales, which happen when lenders let homeowners sell their houses for less than what they owe on their mortgages, are rising. They can drive down the value of neighboring homes, too. In Sacramento., Calif., short sales made up about 26 percent of homes sold in June, up from about 17 percent a year earlier.

Contributing to the problem is an economy grappling with high unemployment, relatively flat pay and tightened credit, all working to limit the number of people buying homes.

It could be a decade before the average price nationally reaches the peak it hit four summers ago, says Celia Chen, chief housing economist at Moody’s. Even when they do resume rising, prices may not outpace inflation.

The median price peaked at $230,300 in July 2006 before tumbling 28 percent to a low of $164,700 in January 2009, according to the National Association of Realtors. The median has since risen to $183,700.

Nationally, about 7.1 million homeowners — more than 13 percent of households with a mortgage — have either missed at least one payment or are in foreclosure, according to data provider Lender Processing Services Inc.

In some Sun Belt cities, investors armed with cash are gorging on deep discounts for some homes, yet the foreclosures keep coming. The local areas remain stuck with depressed economies and a glut of vacant and soon-to-be-vacant homes.

“Even when demand picks up, prices aren’t likely to budge all that much,” said Mark Vitner, senior economist with Wells Fargo Securities.

Moody’s forecasts flat or only slightly lower prices over the next year in Atlanta, Chicago, Boston, Dallas and Portland, Ore. And Seattle and Charlotte, N.C., are expected to enjoy slight price increases. In those areas, the supply of foreclosed homes is smaller, and the local economies are faring better.

Sales of new homes jumped last month, but it still was the second-weakest month in the 47 years records have been kept, the Commerce Department said Monday. Sales for April and March were also revised downward.

Michael Gao, 31, a software engineer in Mountain View, Calif., is watching home listings but feels renting is the wiser option for now. He fears the economy will worsen and thinks the home market will suffer.

“It’s really not looking good,” Gao said. “If the housing market will dip, then why would you buy now?”

Copyright © 2010 The Associated Press. All rights reserved.