CERTIFIED COPY
FORENSIC EXAMINATION OF REAL PROPERTY RECORDS COMMISSIONED BY THE SEATTLE CITY COUNCIL
Objective
The objective of this project is to determine whether residential real estate property assignments within the Seattle city limits involving Mortgage Electronic Registration Systems, Inc. (MERS) are valid and in accordance with Washington State Law in light of the 2012 State Supreme Court decision in Bain v. Metropolitan Mortgage Group, Inc.
September 8, 2015
THE EXAMINATION WAS CONDUCTED BY MCDONNELL PROPERTY ANALYTICS
15 Cape Lane | Brewster, MA 02631
Office Tel: 774-323-0892 | Fax: 774-323-0894
www.mcdonnellanalytics.com
IN COLLABORATION WITH REAL ESTATE SERVICES AND TECHNOLOGY
1 Park Plaza, Suite 600 | Irvine, CA 92614
Phone: +1 (949) 464-REST
www.reservicestech.com
TABLE OF CONTENTS…………………………….5
PREFACE …………………………….8
INTRODUCTION …………………………………………………… 8
OBJECTIVE ……………………………. 9
SCOPE ………………………………… 9
EXECUTIVE SUMMARY ………………………………………………10
SCOPE OF WORK ……………………………………………… 10
METHODOLOGY ………………………………………….. 10
KEY QUESTIONS AND FINDINGS …………………………. 13
Question 1: Transparency …………………………………………………… 13
Question 2: Chain of Title Integrity…………………………………… 13
EXAMINER’S EXCEPTION REPORT …………………………………….. 14
I. REPORT STRUCTURE ……………………………………….. 16
II. WHO IS MERS? …………………. 17
A Two-Tiered Corporate Structure ………………… 18
MERS as Original Mortgagee ………………………….. 19
MERS Has No Interest in Promissory Notes ……………………. 20
MERS Amended its Rules for Washington State ………………….. 21
The MERS Rider ………………………………………….. 22
What is MERS Assigning? …………………………… 23
III. THE UNANSWERED QUESTION ………………………………………… 25
IV. LEGAL EFFECT OF MERS ASSIGNMENTS ……………………………. 26
Legal Content ………………………………………. 27
Legal Purpose …………………………………………………. 27
Legal Effect ………………………………………… 27
V. RECENT DEVELOPMENTS ………………………………… 30
Case Study #1: Assign. Appoint. Reconvey. ……………………………. 31
Corporation Assignment of Deed of Trust …………………………………….. 31
Substitution of Trustee and Full Reconveyance ………………………………… 32
Diagram #1: MERS Assignment …………………………………………….33
Case Study #2: MERS Substitution of Trustee ……………………………………. 36
Substitution of Trustee …………………………………………………….. 36
Diagram #2: MERS Substitution of Trustee ……………………………37
Flooding the Recorder’s Office ………………………. 38
Screen Print #1: MERS Assignments ………………………………………38
Screen Print #2: MERS Appointments ……………………………………..39
MERS Remains Non-Compliant ………………………… 39
VI. CONCLUSIONS ……………………………………………………………. 41
Question 1: Transparency ………………………………………………………… 42
Question 2: Chain of Title Integrity…………………………………………. 43
VII. MCDONNELL PROPERTY ANALYSICS ……………………………………………….. 44
VIII. A CALL TO ACTION ………………………………………. 45
1. Suspend or Revoke Business Licenses …………………………………………….. 47
2. Enforce RCW 40.16.030 ………………………………………………………. 48
3. Place Restrictions on What MERS Can Record ……………………………………………… 49
4. Enact a Residential Mortgage Fraud Statute …………………………………………………… 50
5. Require All Assignments Be Recorded ………………………………………………… 51
6. Establish a Gatekeeper ………………………………………………………. 52
7. Require the Declaration of Beneficiary to be Recorded ………………………………. 53
8. Reintroduce House Bill 2659 ……………………………………… 54
9. Review King County Recorder’s Office Grantor/Grantee Index ………………….. 54
10. Commission a Foreclosure Forensics Audit ……………………………… 56
STATISTICAL ANALYSIS – OBJECTIVE #1 …………………………….57
Table 1: Quantitative Analysis of MERS Alpha Assignments …………………………… 57
STATISTICAL ANALYSIS – OBJECTIVE #1 (CONT.) ……………………..58
STATISTICAL ANALYSIS – OBJECTIVE #2 ……………………………….59
Table 2: Qualitative Analysis of MERS Assignments ……………………………. 59
STATISTICAL ANALYSIS – OBJECTIVE #2 (CONT.) …………………60
STATISTICAL ANALYSIS – OBJECTIVE #2 (CONT.) …………………….61
Table 3: Patterns and Practices ………………………….61
TABLE OF EXHIBITS & APPENDICES……………………………………..62
EXHIBITS …………………………………………………. 62
Exhibit A – Excerpt of Fannie Mae’s Selling Guide for 2007 …………………… 62
Exhibit B – Excerpt of Fannie Mae’s Selling Guide for 2015 ……………….. 62
Exhibit C – Corporation Assignment Deed of Trust, 04/29/2015 ………………… 62
Exhibit D – Substitution of Trustee and Full Reconveyance, 05/01/2015 ……………….. 62
Exhibit E – Excerpt Deed of Trust, 12/06/2004 ……………………….. 62
Exhibit F – Final Judgment, 10/16/2014 ……………………….. 62
Exhibit G – Substitution of Trustee, 04/28/2015 ………………….. 62
Exhibit H – Excerpt Deed of Trust, 06/01/2007 …………….. 62
APPENDICIES ………………………………………………….. 62
APPENDIX – I. Definitions of Terms ……………………… 62
APPENDIX – II. Examination of Assignments Deed of Trust/Mortgage ………… 62
APPENDIX – III. Real Estate Services and Technology’s Methodology …………. 62
APPENDIX – IV. Deed of Trust Act Compliance Checklist ………… 62
APPENDIX – V. Forensic Title Examination of Kristin Bain’s Property ………… 62
MPA REPORT (CERTIFIED) – CITY OF SEATTLE REVIEW OF MORTGAGE DOCUMENTS & EXHIBITS – UPDATED, 9.8.2015
APPENDIX I (CERTIFIED) – MPA DEFINITIONS OF TERMS (MTM),
APPENDIX II (CERTIFIED) – EXAMINATION OF ASSIGNMENTS & EXHIBITS,
APPENDIX IV (CERTIFIED) – DTA COMPLIANCE CHECKLIST & EXHIBITS,
APPENDIX V (CERTIFIED) – FORENSIC TITLE EXAMINATION & EXHIBITS,
© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
MERS is one of the counterfeiting devices of U.S. money magicians.
Magicians have closely kept secrets of their magics for generations, so it is with money magicians who won’t let the secrets of their money magics out of their magic hats.
Although I had already disclosed MERS counterfeiting system in my court papers, no one seems to have caught up with those facts while courts, and litigants, continue to claim that MERS purpose has always been saving recording fees for lenders! Not so! “Kareem Salessi”