December 8, 2011

As those of you who follow this website know, New Century, which was one of the larger California securitization origination “lenders”, filed for Bankruptcy in 2007. However, thereafter and to this day, MERS continues to execute foreclosure documents, including assignments, as “nominee” of New Century.

The big problem for MERS and those using such assignments is that they are absolutely fraudulent, as New Century repudiated its contract with MERS as part of its Bankruptcy, and there is no evidence of any grant of authority from the New Century Bankruptcy Court which would permit MERS to execute such assignments in the first place. This issue has come to the fore in several of our cases in different states.

Further, the separate company which purchased the New Century brand out of bankruptcy has made it clear on its “Legal” page that the company has no connection to or power over the old company’s loans. As such, any “new” assignments by the “new” New Century are also most likely fraudulent.

The world is finally starting to wake up to the massive, pervasive, nationwide fraud which has been engaged in with impunity by MERS, Deutsche Bank, Wells Fargo, Bank of America, US Bank, and their servicers and “trustees” in their never-ending quest to reap massive profits at the expense of homeowners and damn the consequences. It is no longer homeowners who are seeking relief. Attorneys General are also taking action: the Attorney General of Massachusetts has sued several of the “banksters” for fraudulent mortgage practices; the Attorney General of Delaware has sued MERS for fraudulent practices both in foreclosure and its attempt to avoid recording fees; and yesterday, the Attorneys General of California and Nevada formed a joint task force to pursue foreclosure fraud. It is no longer a situation of simply foreclosure defense: the new wave is grounded in affirmative claims against the banks and their agents for their outright fraudulent conduct all over the United States.

The good news is that the CEO of one of them, that being JPMorgan Chase CEO Jamie Dimon, has publicly announced that JPM has plenty of reserves to defend the lawsuits against it. On behalf of the Attorneys General and  private litigants who are going after JPM for its nationalized pattern of fraudulent conduct, we thank you, Jamie, for affirming that JPM is a still a collectible entity.

Jeff Barnes, Esq., ForeclosureDefenseNationwide.com