The Legal Aspects of the Housing Bubble

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Last Post by rj-schneider 13 years ago

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rj-schneider

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It doesn't seem to get much print time, but the circumventing of proper title assignment
and the MERS system got some mention today from Gretchen Morgenson in a piece in the NY Times:

"The deal being discussed now may also release the big banks that are members of MERS, the electronic mortgage registry, from the threat of some future legal liability for actions involving that organization. MERS, which wreaked havoc with land records across the country, was sued last week by Beau Biden, Delaware’s attorney general, on accusations of deceptive trade practices."

The wholesale wipe-out of the land title system and the misery inflicted on the records of local county clerks appears to be far down on the list of grievances to receive any recognition.

Chris Whalen wrote an informative article condemning this process, outlining the illegalities of MERS assignments:

"The Brandeis decision struck down the practice of making a simple, often verbal common law pledge of receivables. The claims supposedly held by Ratner, the creditor of a defunct company over which Benedict was the receiver, was eventually rejected by Brandeis in a decision that shook the ground of American finance and began a seven-decade long debate over the proper construction of secured financial transactions in the US"

Posted : October 31, 2011 6:56 pm

jud

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Home prices increase over time because of inflation or greed and then drop back to a true value unless the government gets their hands in the pie. That is what caused the housing bust, nothing more than government interference and manipulation of the market for votes. It will not stabilize as long as the government stays involved and the free market system is not allowed to make the necessary adjustments. Those adjustment will result in money and homes being lost, the quicker that happens the better off we all will be, hard as it sounds, there are still more assets available now that could be used for recovery than there will be as we continue to use dwindling assets up over time, while hoping to avoid the corrections that will come regardless of our hopes.
jud

Posted : November 1, 2011 10:04 am

rj-schneider

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> Home prices increase over time because of inflation or greed and then drop back to a true value unless the government gets their hands in the pie. That is what caused the housing bust, nothing more than government interference and manipulation of the market for votes. It will not stabilize as long as the government stays involved and the free market system is not allowed to make the necessary adjustments. Those adjustment will result in money and homes being lost, the quicker that happens the better off we all will be, hard as it sounds, there are still more assets available now that could be used for recovery than there will be as we continue to use dwindling assets up over time, while hoping to avoid the corrections that will come regardless of our hopes.
> jud

Jud, The articles posted, I think, had more to do with the erosion of the chain of title than the bailing out of a greedy and fraudulent mortgage industry. But if you'd like to argue and extol the virtues of the free market, and the subsequent necessity of the natural occurrence of loss, you're in for a real eye-opener.

Posted : November 1, 2011 3:31 pm