From: Charles Cox [mailto:charles@bayliving.com]
Sent: Friday, September 02, 2011 12:59 PM
To: Charles Cox
Subject: Order Certifying MERS in Washington
CERTIFIED QUESTIONS:
- Is Mortgage Electronic Registration Systems, Inc., a lawful “beneficiary” within the terms of Washington’s Deed of Trust Act, Revised Code of Washington section 61.24 .005 (2), if it never held the promissory notes secured by the deed of trust?
- If so, what is the legal effect of Mortgage Electronic Registration Systems, Inc., acting as an unlawful beneficiary under the terms of Washington’s Deed of Trust Act?
- Does a homeowner possess a cause of action under Washington’s Consumer Protection Act against Mortgage Electronic Registration Systems, Inc., if MERS acts as an unlawful beneficiary under the terms of Washington’s Deed of Trust Act?
This is the second time that a trial court has certified questions to the Supreme Court of a state with respect to the pattern of conduct by those who acted as intermediaries in the process of securitization of debt. In this case, similar to the case being heard by the Supreme Court of the state of Arizona on September 22, 2011, the specific issue can be boiled down to a single point, to wit: if a strawman is being used essentially as merely a placeholder on what would otherwise be a legal document, what is the effect on title, what is the effect on foreclosure, and what right of action exists in favor of the homeowner if the strawman had no interest in the financial transaction?
The very manner in which the questions are phrased makes it clear that the trial court believes that it will require a change in the law for the pretender banks to prevail in the past, present or future foreclosures or mortgage litigation. The impact of the current pattern of conduct in corrupting the title system in all 50 states continues to have a pervasive effect on the housing market, our national economy, and our standing in world opinion. A correction is certainly required. It seems clear that both sides of the issue have proponents who admit that a correction is necessary. If the correction involves changing our notions of certainty in the marketplace wherein a buyer must make further inquiry than what is reflected in public records, the amount of investigation and paperwork involved in virtually any transaction will skyrocket. If the correction involves applying existing law and the rules of evidence, the title to property involved in tens of millions of transactions will be put in doubt, requiring a massive streamlined effort to “quiet title” thus restoring confidence in the marketplace.
Either way, we are in for a prolonged period of time in which title defects and uncertainty in the marketplace will dominate our attention