Seattle City Council Leads the Way Toward Statewide Registry Audits

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CHRISTOPHER KING, J.D.
kingcast955@icloud.com
mortgagemovies007@gmail.com
http://affordablevideodepo.com
http://mortgagemovies.blogspot.com
617.543.8085m
206.299.9333f

22 September, 2014

Re: Immediate Audits of All Recording Offices.

In 2012 Karen Pooley tried and failed to persuade the Association of County Auditors to
require recording and to audit County records throughout the State, even though
Massachusetts Essex County Register of Deeds John OBrien publicly stated that his
office was, and I quote, a corporate crime scene. Mr. OBrien calls for restitution on
behalf of his homeowners and the County. His report is linked herein, and derived
through the tireless efforts of Marie McDonnell:
http://www.salemdeeds.com/pdf/HuffPostAtlanticCity07-05-11.pdf
http://www.mcdonnellanalytics.com/register-john-obrien-calls-on-court-for-
restitution



At the time we didnt know it, but even in losing, Ms. Pooley won: That is because she
initiated conversation from the board that focused on the central question:

Whether or not there was precedent for litigation and a mass audit. From the Minutes
of the 4 October, 2012 meeting:

Greg in all areas we can always take a just follow the law, but I believe
that this is an area we should be taking a position to protect the citizens
would be interested in the other states most interested in understanding the
other players positions on these documents

Seattle City Council Leads the Way Toward Statewide Registry Audits
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Now we have the law, in addition to John OBrien we have hard case law. I quote from
the Decision in Nancy Becker v. MERSCORP, which is hosted online:
http://www.nakedcapitalism.com/wp-content/uploads/2014/07/118-Memorandum-
and-Order-dated-6-30-14-00122979.pdf

Now since that time, on 30 June 2014 the Federal Court in Pennsylvania ruled in
favor of Nancy Becker in Montgomery County v. Merscorp, Inc., 2014 U.S. Dist.
LEXIS 89222 (2014), expressly finding that case law dating back to the 1800s held:

The purpose of recording statutes was, to prevent anyone from being
defrauded by deceptious appearance of title. ... The recording laws, like all
other public laws are intended for the benefit and security of the people
generally. Montgomery County v. MERSCORP at 14-15.

Thus, and I quote again, an Assignment is a conveyance subject to the mandate of
351. The Court went on to find:

Inasmuch as Community Legal Services, the Legal Aid Network and the Housing
Alliance receive much of their funding and financial support from the collection
of, inter alia, fees paid to the Recorders of Deeds offices, they too have
suffered monetary injury. Montgomery County v. MERSCORP at 38.

In his Declaration, Mr. Proctor attests that licensed title agents have no access
to the information in the bar codes which MERS adds to every document that it
records or to the MERS database of exchanges, sales and assignments that MERS
facilitates for the benefit of its customers/members. This means that title
searchers and consumers are denied the ability to ascertain who currently owns
the note secured by a MERS mortgage and that neither the mortgagor nor the
courts can ascertain the chain of events or the validity of a transaction. This
results, according to Mr. Proctor, in an erosion of Pennsylvanias land records
and the inability to evaluate the marketability of title and credit worthiness of
the consumer. (See, Plaintiffs Exhibit H, pp.6-7). Montgomery County v.
MERSCORP at 38.

However, over the past several years, a number of residents who were facing
foreclosure didnt know who owned their mortgage or to whom they should be
making their mortgage payments. (Id., 66). Plaintiff attributes this to the fact
that MERS is not recording all of the note assignments with the result that not
only is there a loss in revenue, but also the land title records are incomplete to
the public. (Id., 65-68, 176-177).

Finally, Plaintiff also testified that based on a forensic audit which revealed
that a MERS-affiliated mortgage was transferred on average between 4 and 12
times, she conservatively estimates that Montgomery County alone has lost
$15.7 million in recording fees. (Id., 178-180). Montgomery County v.
MERSCORP at 39.

Seattle City Council Leads the Way Toward Statewide Registry Audits
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Because Defendants do not pay any fees when a note is transferred between its
membership fee-paying members, we find that a genuine issue of material fact
exists as to whether it would be unjust to allow Defendants to retain the
benefits conferred on them without paying Plaintiff and the class whom she
represents therefor. Consequently, Defendants motion for summary judgment
as to Count III of the Complaint is also denied. Montgomery County v.
MERSCORP at 41.

Now many of you may recall that I was an escrow attorney more than 10 years ago
when all of this mess started. I too was ignorant at that time, but I have since taken
the time to educate myself, and some of you joined 48
th
District Senate Candidate
Michelle Darnell at a foreclosure and underwater forum last year. Here is the video
from that event:
http://mortgagemovies.blogspot.com/2013/10/kingcastmortgage-movies-applaud-6-of-8.html
https://www.youtube.com/watch?v=cNVyyETFaPw

So we know you are concerned and we encourage you to follow that concern with
action. Ms. Darnell concurs in this video presentation:
https://www.youtube.com/watch?v=TtKjQd5gEZ0

I believe I have presented enough for you all to consider this a moral and categorical
imperative. We owe it to the taxpayers, we owe it to the homeowners, we owe it to
our children and frankly, we owe it to the banking and mortgage industry to teach
them a lesson. I thank you all for your continuing efforts in this regard.

Respectfully submitted,

/s/Christopher King, J.D.
___________________________________
CHRISTOPHER KING, J.D.
kingcast955@icloud.com
mortgagemovies007@gmail.com
http://affordablevideodepo.com
http://mortgagemovies.blogspot.com
617.543.8085m
206.299.9333f
Seattle City Council Leads the Way Toward Statewide Registry Audits
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APPENDIX
Washington State Association of County Auditors
Monday, 4 October 2012

EXCERPT

Vickys opinion when someone comes to our office, they have the expectation that the
documents are on record in our office the deeds, assignments, reconveyances, etc. There is
nothing in current state law that requires it. So, if we have received contacts saying we should
sue MERS for lost recording fees, that is not correct.

Walt this is not our fight. Brought up real estate contracts in banking that are resold.

Vicky is there an overriding public interest to have these 4 documents available to the public?

Thad do we know how many other states have mandatory recording laws? Vicky, no havent
looked at that yet.

Marianne our job is not to perfect title where do you draw the line, there are a lot of other
documents that dont get recorded.

Vicky we dont have to take a position.

Greg in all areas we can always take a just follow the law, but I believe that this is an area we
should be taking a position to protect the citizens would be interested in the other states
most interested in understanding the other players positions on these documents. Vicky
depends on who you talk to. Greg people he has spoken with in the title industry they are
not supportive. He doesnt want to take a position until he understands what the other
positions are.

Vicky it has been stated that the homeowners dont need to know who owns the loan, just
who the servicer is there are a lot of shoulds that are not happening. There is a lack of
quality control.

Carolyn we are being asked to weigh in on a policy decision we should stay away from it
that aside, the requirement to record does not get at the problem. She agrees with Greg that
there are unintended consequences.

Thad current structure is around excise tax we are precluded from recording without excise.
Julie I favor the idea of changing state law. I think it supports our role of being custodian and
providing access. I am not putting myself in position of thinking it solves the problem, but it is
appropriate in my role as recording official. I assume the legislature will balance out the
unintended consequences and figure out if it solves their problems. I would feel comfortable
with a statement to Sen. Klein that we dont see a problem with the recording. I dont have an
objection to doing the work, but not going to assume it will solve the problem, and dont know
what problems it will create for other industries. I support standardization.