The hierarchy of deep state escalation that will end in the attempted assassination of President Trump and engineered terrorism across America Tuesday, October 01, 2019 by: Mike Adams

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(Image: The hierarchy of deep state escalation that will end in the attempted assassination of President Trump and engineered terrorism across America)

The hierarchy of deep state escalation that will end in the attempted assassination of President Trump and engineered terrorism across America
Tuesday, October 01, 2019 by: Mike Adams
https://www.naturalnews.com/2019-10-01-hierarchy-of-deep-state-escalation-attempted-assassination-of-president-trump.html

(Natural News) The deep state is at war with America. The CIA is running an attempted coup, and all the CIA’s puppet “journalists” (actually nothing more than CIA-run media hacks) are all-in. The Democrats are betting everything that they can remove Trump from office and somehow avoid a popular uprising that would likely see millions of armed citizens taking action to defend this republic against the lawless deep state and its authoritarian rule.

You are witnessing the final chapter. The Democrats, CIA and media hacks are throwing everything at Trump in a last-ditch effort to remove him from office before the 2020 election, which the Dems know they cannot win (because Democrat ideas suck, and they have no ideas other than communism and handing out free stuff to everyone). Just today, lunatic Democrat congresswoman Maxine Waters called for President Trump to be “imprisoned and placed in solitary confinement,” probably so the deep state can pull a Jeffrey Epstein on him, where magically all the security cameras simultaneously malfunction while the prisoner is executed.

The fake news corporate media has abandoned any last shred of credibility and is now literally faking every “bombshell” about Trump, Ukraine, Russia and the so-called “whistleblower” (who is really nothing more than a CIA spy). In reality, all media hacks have become crisis actors who have been handed scripts by the CIA, and they are role playing those scripts to pretend like Trump has been caught carrying out heinous crimes… the very same crimes that Joe Biden actually committed.

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Crazed Democrats are obsessed with Trump, but they ignore the real issues facing Americans

This face off ends with just one party left standing. The Democrats cannot survive this if they do not decisively take out Trump, because in escalating this brazen, fabricated assault on our president, Democrats have demonstrated to all Americans that they don’t care about any real issues Americans are facing such as health care costs, the collapse of liberal cities and the growing power and corruption of the pharmaceutical industrial complex. Instead, Democrats are willing to watch America burn and collapse as long as they think they might be able to get Trump in the process.

Democrats have become terrorists, criminals and lunatics, and they have reached the point of insanity where they quite literally want to see this country burned to the ground rather than witness Trump win a second term.

Understand that this current “soft coup” against President Trump is just the beginning of what they have planned. If this soft coup fails, they have a plan of escalation that will ultimately reach the point where deep state criminals like John Brennan and Barack Obama attempt to carry out plans that include the assassination of President Trump. But that’s not even where this ends. If that fails, they have more moves in store for America, and all these attempts will result in the loss of innocent life. Bluntly stated, if Trump doesn’t order the arrest and prosecution of all these deep state traitors and CIA operatives — across Congress, the fake news media fiction factories and even the judiciary — they will unleash deadly terror and lawlessness across America in a desperate effort to reclaim authoritarian rule (while, of course, ordering the executions of all Trump loyalists).

“It may appear that the Democratic Party, furious over Hillary Clinton’s 2016 loss, is the driving force behind this ongoing attempt to remove Donald Trump from office, but at every turn we see the fingerprints of the CIA and its allies in the US deep state,” writes Ron Paul. “Brennan and his deep state counterparts James Comey at the FBI and former Director of National Intelligence James Clapper launched an operation, using what we now know is the fake Steele dossier, to spy on the Trump presidential campaign and even attempt to entrap Trump campaign employees.”

The deep state must be stopped, and that clearly includes Big Tech, the fake news “media” propagandists, and the corrupt sectors of the intelligence community (FBI, CIA, DOJ, State Dept.). If Trump doesn’t stop them, here is the escalation of tactics that will unfold as the radical Left unleashes war on U.S. soil:

Level 1: “Soft coup” attempt
https://www.brighteon.com/926124b7-bc2a-435a-8389-28f98cc21653

At this level, which you are witnessing right now, deep state spies and operatives inside the bureaucracy fabricate fake accusations against Trump while media crisis actors pretend they’ve found a smoking gun that doesn’t actually exist. By whipping up mass hysteria via the CIA-run media, Democrats hope they can trick America into going along with the impeachment of Trump by accusing him of carrying out the corruption crimes that Joe Biden actually executed.

Level 2: Criminal framing attempt using crisis actors

If the soft coup fails, the same deep state operatives and crisis actors (Brennan, Comey, McCabe, Obama, Clinton, etc.) will fabricate fake financial documents and pretend that Trump committed a vast array of financial crimes. The documents will be as fake as Barack Hussein Obama’s birth certificate which, of course, was Photoshopped into a 17-layer digital file with bits and pieces switched together from various scans of old documents.

The Obama deep state has extensive experience fabricating fake documents, and they will put those skills to use in trying to frame Trump for criminal behavior that he didn’t commit. Remember, trust nothing reported by the media. They lie about everything. They are just “following orders,” after all, handed to them by the CIA.

Level 3: Area effect “terrorism” that attempts to injure or murder Trump

When the criminal framing attempts fall flat, the deep state Democrats will ratchet up their plans to a “hot” phase of the civil war. In this phase, operatives run by the FBI — all of whom have extensive experience planning and carrying out acts of terrorism across the United States — will go live with “area effect” attacks that attempt to kill President Trump with nuclear, biological or chemical attacks.

Notably, this level of desperation by the deep state equals that of the staged 9/11 attacks which were of course planned and carried out with the authorization of the very same deep state that’s now trying to destroy Trump. That’s why building 7 was rigged with explosives months in advance, as is now admitted by a senior analyst at CNBC.

It’s also why the Pentagon launched a cruise missile at the Pentagon building, then the media tried to gaslight the entire nation to falsely claim the Pentagon was struck by a commercial passenger jet. Yet amazingly, there was no wreckage from a passenger jet found at the scene. Not even a seat cushion or a scrap of metal from a wing. That’s because the Pentagon wasn’t hit by a passenger jet. It was the FBI that confiscated all the hundreds of surveillance videos from across the region, burying all video evidence of the cruise missile that actually struck the building, just as planned.

This is important to note because if there’s a rogue faction inside the Pentagon that’s still controlled by Obama loyalists, they could literally launch a cruise missile at the White House then gaslight the entire nation to claim it was an act of terrorism from “white nationalists” or something similar. They can make up anything and push it out as “authoritative news,” even if it’s complete fiction.

The most likely area effect weapon, however, is a dirty bomb using cesium-137, a radioisotope that’s deadly in very small quantities. It’s a blue powder, and because the half life of Cs-137 is so short (about 29 years), it gives off an enormous amount of ionizing radiation every second. The Democrat deep state is already well versed at carrying out assassinations and executions of political enemies (Seth Rich, anyone? Andrew Breitbart?), so they already know how to mix Cs-137 into other products to make, for example, car bumpers out of it. Or a painting, or a dinner plate, etc. For this reason, Trump’s security team had better be carrying out portable radiation meters to make sure they can whisk the president out of the way should ionizing radiation be released by the deep state.

For the record, I am the patent holder of an invention called Cesium Eliminator, which is a formula that removes radioisotopes of cesium from the digestive tract. My ISO-accredited mass spec laboratory also runs ICP-MS equipment which can detect Cesium-137 and, frankly, almost any isotope of any radioactive substance. The sensitivity of the instrument is so high that we still see echoes of uranium isotopes released during above-ground nuclear testing carried out by the United States and other nations. If anyone from the Trump administration needs private testing of food, water, clothing, hair or other substances, we can carry that out with total privacy, with rapid turnaround (just a few hours after receiving the sample). We are also experts in food and water contamination, and we run a mass spec time-of-flight instrument that can detect unknown chemicals via accurate mass determination, which is useful if you suspect something has been poisoned but you don’t know which poison was used. From ICP-MS-TOF scans, we can derive chemical equations of poisons and other contaminants, even if we have no idea what molecular masses to look for at the start.

Getting back to the war against President Trump: Deep state terrorists may also attempt chemical attacks or biological attacks. Biological attacks are far more complex in terms of sourcing the weaponized strains, so the more likely weapon delivery system is a chemical attack or a dirty bomb nuclear attack. Chemical attacks could include drone-delivered aerosolized fentanyl, for example, which is nearly impossible to defend against in you’re out in the open. One breath and you’re dead. It’s worth noting that a lot of the methods of weapon delivery in the future of warfare — including deep state warfare against America — will be conducted via drones. This could include small-scale dirty bomb packages delivered by drone and detonated in open spaces to rain down highly radioactive material onto the target zone. Think Chernobyl, but smaller.

Note than in all these scenarios, thousands or even tens of thousands of Americans will be killed in the process. But as we learned with 9/11, this has never stopped the deep state before. If they have to nuke a U.S. city to take out Trump in the process, they will not hesitate to do so (as long as they can blame Trump and gun owners, of course).

It’s worth repeating this so that you get it. The Democrats and their deep state handlers are truly at war with America. There’s nothing they won’t do. The FBI is, as we have exhaustively documented, is a straight-up terrorist organization, and the FBI ran the murders of JFK, RFK and MLK, Jr., as well as running the Oklahoma City bombing and taking part in the 9/11 cover-up. Nearly all the acts of mass destruction and terrorism that you learned about in U.S. history were actually carried out by the deep state itself, always for political purposes. Oklahoma City, for example, was run under President Clinton to try to take out Rush Limbaugh and censor conservative talk radio. 9/11 was carried out to expand the very same domestic surveillance powers which Obama and Clinton weaponized against Trump. JFK was taken out because he threatened to end the Federal Reserve and bring the money supply back under the control of the U.S. Congress. Dr. King was assassinated because he preached racial peace and unity instead of violence and hatred. The list goes on…

It’s not just present-day events that are being staged and faked by crisis actors, in other words; it’s the entire post World War II history of the United States. The deep state has been running this show for 75 years, and they won’t give up power without waging war on the outsider (Trump) who threatens them.

Level 4: Direct assassination attempt to murder Trump

When all the other attempts fail, a direct assassination attempt will be leveled against Trump, but it will of course be made to look like a death by natural causes in order to suppress a patriot uprising. If Trump is killed via a shooting or some similarly violent attack, that will be the tipping point for American patriots to self-activate and rise up against the corrupt, criminal deep state and the Democrat traitors across the country. So the deep state will attempt to make the assassination look like an accident or a natural death, and of course the autopsy will be covered up, the body will be cremated and all evidence will be swept under the rug as quickly as possible.

After all, they took out JFK and got away with it. And RFK, too. The deep state can murder presidents and get away scot-free because the media will gaslight the American public and follow the CIA propaganda scripts. The only thing different today is the existence of the independent media, which is precisely why InfoWars, for example, is under extreme lawfare assault and demonetization attacks. The only way the deep state can achieve success with its gaslighting operations is if the independent media is taken offline. That’s why they are infuriated that the indy media has been so resilient, to the point where we are launching our own platforms to compete with YouTube, for example. Just as I have launched Brighteon.com, Alex Jones now has Banned.video. Both platforms dare to allow people to tell the truth about world events, despite the censorship attempts by the establishment.

Level 5: Unleashing planned invasion of America with Chinese and UN troops

Finally, if the direct assassination attempt fails, the deep state will unleash an international war that will invite Communist Chinese and U.N. troops to invade and occupy the United States through California and the Southern border, respectively.

Calif. Governor Newsom has already sold out to the Chinese and will no doubt welcome a communist Chinese invasion of California, granting millions of Chinese troops a beachhead on California soil. The lunatic left-wing Democrats in California will cheer at first, at least until the Chinese troops begin raping, pillaging and mass murdering the residents of Los Angeles as they sweep eastward. (Note to California libtards: Communism sounds awesome until it arrives at your door. Then it’s murderous.)

Should this scenario happen, patriots in rural California, Oregon, Nevada and Arizona will not only engage and disrupt Chinese military operations; they will also seek out and remove all the collaborators (i.e. Democrats who went along with the invasion). Dave Hodges at TheCommonsenseShow.com covers this scenario in great detail in his excellent reporting which is based on sources in the intelligence community. Read The Russian Scissors Strategy Part 1 and Part 2 for an overview of the multinational invasion of the USA that’s being planned with the help of Obama and other traitors.

https://www.brighteon.com/e81906b5-4068-4440-bcd6-b6f68d639bb8

Along the U.S. Southern border, U.N. troops will invade Texas, New Mexico, Arizona and California, deploying all those U.N. armored personnel carriers you’ve seen shipped across the country on trains. The goal will be the complete occupation and control of pro-Trump regions of the country, which include Middle America and most western states. Should such an invasion occur, patriots in Texas and elsewhere will engage these United Nations invading forces with extremely effective disruption / guerilla tactics that they learned in the United States military. Texas alone has over a million retired veterans who are highly capable, deeply determined and extremely well-equipped.

Even a few hundred thousand blue helmets far from home, spread out along difficult supply lines and unfamiliar territory, are no match for retired U.S. Marines, special forces, Army and police SWAT. Add to that the massive firearms and ammunition supplies that have been stockpiled by citizens across millions of private homes and businesses across the western states, and you have an unwinnable war for UN forces, who will be confronted by long range engagements by patriots who grew up hunting deer and other game at long distances. For a Texan, engaging an enemy UN soldier at 500 yards doesn’t even require any effort. And Texas residents already own large caliber weapons used for hunting purposes, such as 300 WM, or 338 LM, or even 50 cal platforms such as the Barrett, which can disable UN vehicles with a single shot. (Because 660 grains of hot lead slices right through engine blocks…)

https://www.naturalnews.com/2019-10-01-hierarchy-of-deep-state-escalation-attempted-assassination-of-president-trump.html

Prepare for massive, nationwide disruptions: Grid down, fuel shortages, food lines, left-wing riots
You’ll notice that in several of the scenarios described above, there will be extensive disruptions of the basic infrastructure of modern society. Even if you don’t live in cities where riots and lawlessness will occur (i.e. liberal-run cities), you are likely to experience the ripple effects of infrastructure disruptions. Those may include temporary disruptions in the power grid.

JohnyMac at AmericanPartisan.org has published an excellent new article that discusses the importance of realizing that your comms will go down when the grid goes down. This means you won’t be able to communicate by phone, or internet or any common carrier. What will continue to work? Radio frequencies, of course, which is why HAM radio operators and technicians will rule the recovery.

As JohnyMac asks:

Once your electrical substation goes down communication along with other things that electricity provides will be gone too. What is your plan to generate enough electricity to keep your furnace going, freezers freezing, and communications happening? Certainly, if you have a generator and plenty of fuel you and your family can survive but, all the power in the world at your home will not allow you to communicate blocks away let away states away if the cell towers have no power. What is your communication plan post a grid down situation and the backup generators at the cell towers run out of fuel?

If you don’t have communications gear, you’re basically screwed in this type of situation. To get up to speed quickly, go take one of the Brushbeater courses, held in North Carolina.

I also mentioned in a previous article that if you don’t have night vision gear, you’re screwed again, since night time is when all the troublemakers come out to try to steal your supplies or just flat-out kill you so they can occupy your home. ReadyMadeResources.com has a solid selection of night vision devices and is run by patriotic Americans.

If you’re looking for food supplies, we’ve got our ever-popular Ranger Buckets at the Health Ranger Store. (Which are currently sold out, but we’re ramping up another production run.) These are certified organic, lab-tested, long-term storage food staples that can be made into hundreds of different recipes. You’ll want to stockpile some olive oil, lard or coconut oil in addition to what’s in the buckets, by the way.

I also noticed that Defense Distributed Ghost Gunner machines are sold out until 2020. This means Americans are buying them like crazy and making their own homemade firearms to get ready for a foreign invasion, authoritarian rule or Antifa-ignited civil war. This also means Americans have no plans to surrender their firearms. If anything, they’re making more.

It’s pretty clear the American people are fed up with being ruled by an authoritarian deep state cabal of treasonous actors. Americans are tired of media lies and blatant propaganda being spewed forth by CNN and NBC (Nothing But Communism). The American people are going to see this through, and they’ve decided that defeating the Democrats is the only way to preserve this nation.

Be prepared for anything, because it’s false flag season in the minds of deep state Democrats. Watch for mass shootings, explosives, chemical attacks, dirty bombs, engineered social chaos, fake news crisis actors, extreme censorship and possibly even a Democrat-run foreign invasion of U.S. territory. There’s nothing they won’t try to topple Trump. Which means you need to be ready for anything to occur.

Ultimately, the only way to save America is to tear down the FBI, CIA, DOJ and State Department, then start over with strict government budget limits that force the federal government to shrink by 95%. Only then will the American people ever be safe from tyranny. It’s time to drain the swamp, and Trump is the only person in Washington D.C. who seems to be willing to pull the drain plug.

Stay informed. Keep reading this website for details as these events unfold. If we are taken offline, it means the deep state is actively moving forward with its assassination and invasion plans. Stay on high alert at all times, and watch your six.

Stand by for stand by.

Hollywood Ramps Up Anti-Gun Propaganda


Hollywood Ramps Up Anti-Gun Propaganda
https://www.usconcealedcarry.com/hollywood-ramps-up-anti-gun-propaganda/
By John Caile // 11/16/2018

By now, no reasonable person can deny the overwhelming bias in our mainstream news sources. When some shooting occurs, the first questions directed to law enforcement officials at the news conference are seldom about the perpetrator. Instead, it’s, “What kind of gun did they use? Where did they get the gun? Was it an ‘assault rifle?’” In other words, it’s all about the gun.

Conversely, when it comes to cases when armed civilians successfully defend themselves or others, guns are either left out of the story or their role is downplayed dramatically.

However, the media is only the tip of the propaganda iceberg — and not even the most influential in shaping public opinion. In reality, entertainment programming, whether TV, movies or even “original content” streamed on your various devices, has become the primary vehicle for anti-gun propaganda. And it is very effective.

For example, think about the number of times you see fully automatic weapons used in shows based on law enforcement. Whether the protagonists are street cops, FBI or undercover narcotics agents, the bad guys are invariably armed with full-auto AKs, ARs and even high-end guns like FN SCARs and H&K MP5 submachine guns.

But ask any working police officers (even those in major cities) how many times they actually run into such weapons. The answers run from “Never in my 20 years on the force” to “Once, back in the ‘80s, during the Florida cocaine wars” to “The L.A. bank robbery in ’97.” Other than that, full-autos are almost non-existent in street crime.

Unfortunately, reality matters little. Images of bad guys blazing away in show after show become embedded in the brains of everyone watching. Over time, the perception attains a life of its own. Thus, when anti-gun politicians mention “assault weapons” bans, a disturbing number of otherwise logical people think they’re talking about “you know, those machine guns.” Both politicians and the media continue to encourage this misunderstanding.

Note that these are not attempts to entertain but to persuade.

In a recent episode of one of those “doctor” shows, the main character is being interviewed by a reporter on the shooting by police of two young boys.

The “doc” somberly states that he “knows what hollow-point bullets can do,” which, according to him, is “expand to THREE TIMES their diameter” and “turn muscle tissue into jelly” (I’m not making this up), then “shatter bones like matchsticks.” And he doesn’t stop there. He goes on to claim that the reason that the two boys were shot with a single bullet was that these same hollow-points were able to “easily rip through both victims.”

Such exaggerated nonsense is just that to most of us — nonsense. But you and I are not the intended target — the gullible public is.

Make no mistake, Hollywood’s war on guns is only going to get worse. The anti-gun money poured into this latest election should serve as a warning. In 2020, Bloomberg, Soros and the rest of the usual suspects will be spending even more.

We all need to be aware of the incredible surge in anti-Second-Amendment propaganda masquerading as “entertainment.” And be prepared to challenge politicians who attempt to capitalize on an ignorant and misinformed public.

RBS bankers joked about destroying the US housing market By Rob Davies

RBS bankers joked about destroying the US housing market
By Editor August 16, 2018
http://www.theeventchronicle.com/finanace/rbs-bankers-joked-about-destroying-the-us-housing-market/


A boarded up building in Cleveland, Ohio, in January 2008. In the build up to the crisis mortgage lenders were incentivised to make as many loans as possible. Photograph: Timothy A. Clary/AFP/Getty Images
Transcripts of pre-financial crisis conversations show senior bankers’ disregard for customers

By Rob Davies

RBS bankers joked about destroying the US housing market after making millions by trading loans that staff described as “total fucking garbage”, according to transcripts released as part of a $4.9bn (£3.8bn) settlement with US prosecutors.

Details of internal conversations at the bank emerged just weeks before the 10-year anniversary of the financial crisis, which saw RBS rescued with a £45bn bailout from the UK government.

The US Department of Justice (DoJ) criticised RBS over its trade in residential mortgage backed securities (RMBS) – financial instruments underwritten by risky home loans that are cited as pivotal in the global banking crash.

It said the bank made “false and misleading representations” to investors in order to sell more of the RMBS, which are forecast to result in losses of $55bn to investors.

Transcripts published alongside the settlement reveal the attitude among senior bankers at RBS towards some of the products they sold.

The bank’s chief credit officer in the US referred to selling investors products backed by “total fucking garbage” loans with “fraud [that]was so rampant … [and]all random”.

He added that “the loans are all disguised to, you know, look okay kind of … in a data file.”

The DoJ said senior RBS executives “showed little regard for their misconduct and, internally, made light of it”.

In one exchange, as the extent of the contagion in the banking industry was becoming clear, RBS’ head trader received a call from a friend who said: “[I’m] sure your parents never imagine[d]they’d raise a son who [would]destroy the housing market in the richest nation on the planet.”

He responded: “I take exception to the word ‘destroy.’ I am more comfortable with ‘severely damage.’”

Another senior banker explained to a colleague that risky loans were the result of a broken mortgage industry that meant lenders were “raking in the money” and were incentivised to make as many loans as possible.

Employees who might raise the alarm about the riskiness of such lending “don’t give a shit because they’re not getting paid”, he said.

The bank made “hundreds of millions of dollars” from selling RMBS, the DoJ said, while disguising the risk they posed to investors, which included a group of nuns who lost 96% of their investment.

By October 2007, as signs of stress began to show in the banking system, RBS’ chief credit officer wrote to colleagues expressing his true feelings about the burgeoning volume of subprime loans in the housing market.

He said loans were being pushed by “every possible … style of scumbag”, adding that it was “like quasi-organised crime”.

“Nobody seems to care,” he added.
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The DoJ criticised RBS’ failure to do due diligence on the loans it was packaging, saying the bank feared it would lose out to rivals if it performed stricter tests.

One analyst at the lender referred to the bank’s due diligence procedures as “just a bunch of bullshit”, according to the transcripts.

When the bank became concerned about the poor quality of loans and started imposing tighter due diligence, one senior banker complained, saying: “Oh, God. Does anyone want to make money around here any more?”

RBS expected to make $20m from one deal that involved trading particularly risky loans, but faced resistance from the bank’s chief credit officer.

A senior executive responded to the concerns by telling the bank’s head trader: “Please don’t fuckin’ blow this one. We need every dollar we can get our hands on.”

Internal conversations between bankers also offer some insight into their growing realisation of the poor quality of the loans the bank owned and sold.

In September 2007, one trader referred to an appraisal of loans as giving “pretty shitty results”.

The transcripts were released by the DoJ as it confirmed the details of the settlement with the bank over its trading in RMBS.

RBS said: “Under the terms of the settlement, RBS disputes the allegations but will not set out a legal defence, while the settlement does not constitute a judicial finding.”

Certainty over the scale of the settlement will allow the bank to pay its first dividend in a decade this year.

The dividend is worth £240m and the Treasury will receive £149m as RBS is still 62%-owned by the government.

Ross McEwan, RBS chief executive, said: “This settlement dates back to the period between 2005 and 2007. There is no place for the sort of unacceptable behaviour alleged by the DoJ at the bank we are building today.”

He added that the bank could now “focus our energy on serving our customers better”.

But league tables published by the Competition and Markets Authority on Wednesday placed RBS joint bottom for customer service, with fewer than half of customers saying they would recommend the bank to a friend.

RBS will have to publish the results in branches, on its website and mobile app from today.

This article (RBS bankers joked about destroying the US housing market) was originally published on The Guardian and syndicated by The Event Chronicle.

jmdenison https://wordpress.com/read/blogs/29589295/posts/15035 Very Good MERS article from Mandelman


https://wordpress.com/read/blogs/29589295/posts/15035
jmdenison
MaryGSykes.com

From GG: the good ship MERS may be going down…for you folks facing those robo signing/false accountings foreclosure cases, read on
23h ago
http://mandelman.ml-implode.com/2011/02/new-bankruptcy-court-decision-sounds-the-alarm-%E2%80%93-the-uss-mers-is-going-down/

This is a pretty funny article about MERS and how it is mostly a full of it mortgage/note handling process that bilks county recorder out of millions in recording mortgage docts per year, plus it can often create havoc in foreclosure/assignment/purchase cases.
read on.
New Bankruptcy Court Decision Sounds the Alarm – The USS MERS is Going Down

Preface…

Before I jump into this decision by a U.S. Bankruptcy Court Judge in New York, I just want to acknowledge that I very rarely write about MERS. And it’s not an accident; I’ve chosen not to do so… until now, anyway.

Perhaps I’ve been wrong not to cover the MERS debacle in greater detail, but the reason I haven’t is that I view some of the issues related to MERS as kind of… well, pedestrian… not to put too fine a point on it.

Other than a few good decisions by courts that have barred MERS from foreclosing, it just seemed to me that the problems presented by MERS could be fixed, and therefore I didn’t want homeowners who read my column to put too much stock in their loan being a MERS loan, as doing much for them if they find themselves at risk of foreclosure.

This decision has done a lot to change my view of MERS and the role it plays in foreclosures. The judge in this case presents a damn strong, if non-binding case why MERS may in fact be a much larger problem than I thought it was.

According to consumer bankruptcy attorney and nationally known foreclosure defense guru, Max Gardner…

“This case may well be the final dagger in the deep dark heart of the MERS business model. MERS has fired its President, R.K. Arnold, and may well terminate its Secretary, William Hultman, but MERS cannot fix the systematic and fundamentally flawed legal issues clearly and succinctly identified by the Court in Agard.”
And so… without further delay, I present to you… the “Agard Decision”.

~~~

The State: New York

The Case: In re: Ferrel L. Agard, Debtor, Chapter 7

The Court: United States Bankruptcy Court, Eastern District of New York

The Judge: The Honorable Robert E. Grossman

The Set Up: U.S. Bank, as the trustee for one First Franklin Mortgage Loan Trust 2006-FF12, Mortgage Pass-Through Certificates, Series 2006-FF12… which all just means that we’re talking about a REMIC trust containing a securitized pool of mortgages… moves to obtain relief from the automatic stay created by a Chapter 7 bankruptcy filing, in order to complete the foreclosure of Ferrel Agard’s home. New York State courts had already ruled and a foreclosure judgment was issued, so now U.S. Bank as trustee just needed to finish things out by obtaining relief from the automatic stay so they can proceed with selling the home.

Records show that the bankruptcy trustee expected a routine, no assets case… file report, collect fee, end of case. U.S. Bank, represented by its loan servicer, Select Portfolio Servicing (“SPS”), who was in turn represented by Buffalo’s most infamous foreclosure mill, Steven J. Baum PC, must have thought about the same… a straight forward foreclosure case, lets get rid of the deadbeats and be home by dinner.

But, in today’s fast changing world of Fraudclosuregate, things are not always as they appear, and crap that flew yesterday may not fly again tomorrow.

The Opposition: On October 27, 2010, the borrower’s attorney filed a single page document on which the type was double-spaced. It was a “partial opposition to the motion for relief from stay” that U.S. Bank had filed, and it suggested to the judge that perhaps there might be some sort of small problem with the MERS assignment. It also, in so many words, posited: Who the heck was Select Portfolio Services and why did they have any role in the case anyway?

After that, one might say… the fit hit the shan.

The Hearing: At a hearing held on November 15, 2010, the judge must have more than just hinted that he was going to look very carefully at this whole MERS thing, because he suggested that the parties might want to consider filing some real legal briefs on the subject, and he made it clear that he would be holding a real hearing on the issues on December 15, 2010, just one month down the road.

The Response: All of a sudden nothing was at it seemed just days before… SPS asks the court for more time and rushes out for reinforcements, bringing in a “tall building” law firm from New York City to replace the relative pikers at Baum’s Mill. The newly retained big city lawyers file a major brief in support of the U.S. Bank/SPS position on December 8th.

Then, on December 9th, MERS shows up, metaphorically at least with lights flashing and sirens blaring, to file an “emergency motion to intervene,” crying in sheer panic that their entire national business model is being attacked and that the result can be nothing less than the end of the world as we all know it.

They bring in a sworn declaration from MERS Treasurer and Corporate Secretary, William Hultman on December 10th, that explains what an entirely fabulous and utterly wonderful invention MERS actually is, and then… I suppose afraid that the one Hultman declaration just might not carry the day they show up with yet another declaration from MERS Treasurer and Corporate Secretary, William Hultman on December 23rd.

In an effort to keep things straight as related to the declarations, we’ll call that one: “Why Everyone Should Love MERS More Than Life Itself… The Sequel.”

The judge then begins to dig into the matter. Perhaps he was waiting for a case such as this one, or perhaps some other forces were in play, but regardless… for MERS… this was the wrong judge on the wrong day.

The Decision: Judge Grossman devotes the first half of his opinion to discussing whether he even has the legal authority to look into how U.S. Bank obtained this mortgage in the first place, since it already had obtained a foreclosure judgment in state court, and because there is an irritating (to Federal judges) and arcane Rooker-Feldman doctrine that prohibits federal courts from interfering with state court judgments.

Alas, our intrepid judge concludes on page 18 of his decision that Rooker-Feldman does in fact preclude him from looking further into the issues that underlie the U.S. Bank foreclosure judgment. And, as a result, Judge Grossman decides that he must grant U.S. Bank’s motion for relief from the bankruptcy automatic stay so that the trustee can complete the foreclosure.

Now, were we talking about most judges, that would represent the end of this proverbial road… the opinion would be dated and signed and I would not be writing about the case now. But we’re not talking about most judges… we’re talking about the Honorable Judge Robert E. Grossman of the U.S. Bankruptcy Court, and he’s apparently not a judge with which one should trifle.

He’s got MERS in his crosshairs, apparently exactly where he wants them, and in the 18 pages that follow his decision to grant the relief from the automatic stay he goes after MERS mercilessly. Attorney Thomas Cox of Portland, Maine, who you may remember from the “GMAC uses robo-signers deposition” that brought foreclosures to a standstill last fall, says that in his opinion…

“He (Judge Grossman) does the most thorough and competent analysis of the MERS charade that I have seen, basically concluding that the entire MERS business model does not comply with our laws, and that he will no longer accept MERS mortgage assignments in his court room.”
It’s a decision that was a delight to see.”</em>
Now, clearly this is a decision that’s worth reading for one’s self… Judge Grossman is one heck of a writer and not one to play patty-cake with MERS or those of the banking persuasion, but I thought I’d at least provide the overview of the decision with “training wheels” for those who aren’t of the mind to wade through the entire text of the decision themselves, or who find these things next to impossible to read and understand.

Here’s the overview of the Memorandum Decision in its entirety… with my clarifications added for those who find them valuable. If you’re a lawyer or just an uber-smartee, just scroll on down to the imbedded document for a copy of Judge Grossman’s decision in its entirety.

The movant is Select Portfolio Servicing, Inc. (“Select Portfolio” or “Movant”), as servicer for U.S. Bank National Association, as Trustee for First Franklin Mortgage Loan Trust 2006-FF12, Mortgage Pass-Through Certificates, Series 2006-FF12 (“U.S. Bank”)

Okay, for now just remember that the servicer is the “Movant.” The rest I already covered above at the very beginning. U.S. Bank N.A. is the trustee for the First Franklin Mortgage Loan Trust… blah, blah, blah… got it? Good, let’s move on…

The Debtor filed limited opposition to the Motion contesting the Movant’s standing to seek relief from stay. The Debtor argues that the only interest U.S. Bank holds in the underlying mortgage was received by way of an assignment from the Mortgage Electronic Registration System a/k/a MERS, as a “nominee” for the original lender.

The Debtor’s argument raises a fundamental question as to whether MERS had the legal authority to assign a valid and enforceable interest in the subject mortgage. Because U.S. Bank’s rights can be no greater than the rights as transferred by its assignor – MERS – the Debtor argues that the Movant, acting on behalf of U.S. Bank, has failed to establish that it holds an enforceable right against the Property.1.

This references the single page, double-spaced document I described that was filed by the borrower’s attorney, called a “partial opposition to the motion top relief from stay”. It raised some questions that the judge would later seek to answer.

The Movant’s initial response to the Debtor’s opposition was that MERS’s authority to assign the mortgage to U.S. Bank is derived from the mortgage itself, which allegedly grants to MERS its status as both “nominee” of the mortgagee and “mortgagee of record.”

Judge Grossman is going to attack this line of reasoning head on in the last 18 pages of his decision. Among many other things, you’ll see him say… “Aside from the inappropriate reliance upon the statutory definition of “mortgagee,” MERS’s position that it can be both the mortgagee and an agent of the mortgagee is absurd, at best.” And there’s a whole lot more where that came from… read on…

The Movant later supplemented its papers taking the position that U.S. Bank is a creditor with standing to seek relief from stay by virtue of a judgment of foreclosure and sale entered in its favor by the state court prior to the filing of the bankruptcy.

The Movant argues that the judgment of foreclosure is a final adjudication as to U.S. Bank’s status as a secured creditor and therefore the Rooker-Feldman doctrine prohibits this Court from looking behind the judgment and questioning whether U.S. Bank has proper standing before this Court by virtue of a valid assignment of the mortgage from MERS.

This is the part that caused Judge Grossman to back down in this particular instance and allow the relief from automatic stay, thus allowing the foreclosure to proceed. Basically, he concludes that he’s not allowed to question the facts that underlie the foreclosure judgment that was previously granted by the state court.

There is also an important footnote (“1”) on the second page that reads as follows:

The Debtor also questions whether Select Portfolio has the authority and the standing to seek relief from the automatic stay. The Movant argues that Select Portfolio has standing to bring the Motion based upon its status as “servicer” of the Mortgage, and attaches an affidavit of a vice president of Select Portfolio attesting to that servicing relationship.

Case law has established that a mortgage servicer has standing to seek relief from the automatic stay as a party in interest. See, e.g., Greer v. O’Dell, 305 F.3d 1297 (11th Cir. 2002); In re Woodberry, 383 B.R. 373 (Bankr. D.S.C. 2008).

This presumes, however, that the lender for whom the servicer acts validly holds the subject note and mortgage. Thus, this Decision will focus on whether U.S. Bank validly holds the subject note and mortgage.

I think the judge is saying that servicers do have standing to seek relief from an automatic stay that results from a borrower filing bankruptcy, but that such standing presumes that the lender being represented by the servicer validly holds the note and mortgage, and that the decision will address that issue.

Okay, you’ve got that part pretty much down, right? Then the decision goes on to say…

The Court received extensive briefing and oral argument from MERS, as an intervenor in these proceedings, which go beyond the arguments presented by the Movant.
This just says that MERS showed up with all guns blazing, arguing that MERS represents all that is right, good and just in the world. The judge isn’t buying though…

In addition to the rights created by the mortgage documents themselves MERS argues that the terms of its membership agreement with the original lender and its successors in interest, as well as New York state agency laws, give MERS the authority to assign the mortgage.

MERS argues that it holds legal title to mortgages for its member/lenders as both “nominee” and “mortgagee of record.” As such, it argues that any member/lender, which holds a note secured by real property, that assigns that note to another member by way of entry into the MERS database, need not also assign the mortgage because legal title to the mortgage remains in the name of MERS, as agent for any member/lender, which holds the corresponding note.

MERS’s position is that if a MERS member directs it to provide a written assignment of the mortgage, MERS has the legal authority, as an agent for each of its members, to assign mortgages to the member/lender currently holding the note as reflected in the MERS database.

Judge Grossman is going to examine all of these arguments and then some in his decision. But before he does that, he’s going to agree that he’s precluded from digging into the facts pertaining to the foreclosure judgment previously obtained in state court, and so he’s going to grant relief from the automatic stay and allow this foreclosure to proceed. And in that regard the judge writes…
For the reasons that follow, the Debtor’s objection to the Motion is overruled and the Motion is granted. The Debtor’s objection is overruled by application of either the Rooker-Feldman doctrine, or res judicata. Under those doctrines, this Court must accept the state court judgment of foreclosure as evidence of U.S. Bank’s status as a creditor secured by the Property. Such status is sufficient to establish the Movant’s standing to seek relief from the automatic stay. The Motion is granted on the merits because the Movant has shown, and the Debtor has not disputed, sufficient basis to lift the stay under Section 362(d).

Next the judge explains that, even though this court is constrained by Rooker-Feldman and the previously obtained state court decision, because there are numerous other cases before this court that present identical issues, and for which there have been no prior dispositive state court decisions, he’s going to look beyond this case’s limitations and publish a decision that addresses the issue of whether the “Movant” has established standing in this case because of the precedential effect it will have on other cases pending before the court. And so he writes…

Although the Court is constrained in this case to give full force and effect to the state court judgment of foreclosure, there are numerous other cases before this Court, which present identical issues with respect to MERS and in which there have been no prior dispositive state court decisions.

This Court has deferred rulings on dozens of other motions for relief from stay pending the resolution of the issue of whether an entity which acquires its interests in a mortgage by way of assignment from MERS, as nominee, is a valid secured creditor with standing to seek relief from the automatic stay.

It is for this reason that the Court’s decision in this matter will address the issue of whether the Movant has established standing in this case notwithstanding the existence of the foreclosure judgment. The Court believes this analysis is necessary for the precedential effect it will have on other cases pending before this Court.

The next paragraph of the judge’s decision is particularly telling. It is Judge Grossman completely disregarding perhaps MERS’ favorite argument, which is that MERS has to be okay because half the mortgages in this country are registered with MERS and if it’s not okay, the whole world will come to an end.

Judge Grossman states his view of this argument in no uncertain terms…

The Court recognizes that an adverse ruling regarding MERS’s authority to assign mortgages or act on behalf of its member/lenders could have a significant impact on MERS and upon the lenders, which do business with MERS throughout the United States.

However, the Court must resolve the instant matter by applying the laws as they exist today. It is up to the legislative branch, if it chooses, to amend the current statutes to confer upon MERS the requisite authority to assign mortgages under its current business practices.

MERS and its partners made the decision to create and operate under a business model that was designed in large part to avoid the requirements of the traditional mortgage recording process. This Court does not accept the argument that because MERS may be involved with 50% of all residential mortgages in the country, that is reason enough for this Court to turn a blind eye to the fact that this process does not comply with the law.
Wow, so you see what he’s saying there, right? It’s worth repeating…

MERS and its partners made the decision to create and operate under a business model that was designed in large part to avoid the requirements of the traditional mortgage recording process. This Court does not accept the argument that because MERS may be involved with 50% of all residential mortgages in the country, that is reason enough for this Court to turn a blind eye to the fact that this process does not comply with the law.
Did you hear that sound? That was the sound of the MERS ship hitting an iceberg and starting to sink. To the lifeboats, banker-people, your ship is sinking, and the water’s damn cold.

And on that note, it’s once again time to Sing-Along with Mandelman! You remember the song from our youth about “How they built the ship Titanic to sail the ocean blue? And they thought they had a ship that the water would never leak through. But the Lord’s almighty hand, knew that ship would never stand… it was sad when the great ship went down. It was sad, so sad… it was sad, so sad…” You remember that one right?

Alrighty then… so, sing it like you mean it… with feeling… and if you don’t want to sing, maybe you should be reading about this stuff on Naked Capitalism, or Firedog Lake… Yves Smith is smarter than all get out, but when was the last time she led you in song?

V1:

Oh they built the good ship MERS, so foreclosures could sail through,

And they thought they had a plan that the courts would never see through,

But some lawyers’ learned hands, showed that MERS just didn’t stand,

We were glad when the MERS ship went down.

~~~

CHORUS:

Oh we were glad, so glad,

We were glad, so glad,

We were glad when the MERS ship went down, to the bottom of the sea…

Many lost homes, but to those who lacked their loans,

We were glad when the MERS ship went down.

~~~

V2:

Oh, they went into the courts, hoping judges were inclined,

To not care exactly how, someone’s loan had been assigned.

Yes, the banks would rue the day, when they wrote that PSA,

We were glad when the MERS ship went down.

~~~

CHORUS:

Oh we were glad, so glad,

We were glad, so glad,

We were glad when the MERS ship went down, to the bottom of the sea…

Many lost homes, but to those who lacked their loans,

We were glad when the MERS ship went down.

~~~

V3:

MERS said it had the right, to do things as it pleased,

But the courts did not agree, and soon homes could not be seized.

Seems laws had important words, and MERS assertions were absurd,

We were glad when the MERS ship went down.

~~~

CHORUS:

Oh we were glad, so glad

We were glad, so glad

We were glad when the MERS ship went down, to the bottom of the sea…

Many lost homes, but to those who lacked their loans,

We were glad when the MERS ship went down.

V4:

Soon the bankers will all see, that fraud is not what prevails,

And they’ll realize their hot air will not fill this nation’s sails,

But the price will have been paid, for their mortgage-backed charade,

We were glad when the MERS ship went down.

~~~

CHORUS:

Oh we were glad, so glad

We were glad, so glad

We were glad when the MERS ship went down, to the bottom of the sea…

Many lost homes, but to those who lacked their loans,

We were glad when the MERS ship went down.

~~~

Okay, so I know there are at least a few people out there singing along with that little ditty from days spent at summer camp or on the school bus while on the way home from a field trip. Maybe next time I’ll work from Bingo Was His Name-O, or 100 bottles of Beer on the Wall.

Meanwhile, you’ve got plenty to do reading Judge Grossman’s decision as provided below. But, before you do, here are a few highlights, once again for those who want the Reader’s Digest Version.

First, from the MERS side of the argument…

In addition to adopting the arguments asserted by the Movant, MERS strenuously defends its authority to act as mortgagee pursuant to the procedures for processing this and other mortgages under the MERS “system.”

First, MERS points out that the Mortgage itself designates MERS as the “nominee” for the original lender, First Franklin, and its successors and assigns.

In addition, the lender designates, and the Debtor agrees to recognize, MERS “as the mortgagee of record and as nominee for ‘Lender and Lender’s successors and assigns’” and as such the Debtor “expressly agreed without qualification that MERS had the right to foreclose upon the premises as well as exercise any and all rights as nominee for the Lender.” (MERS Memorandum of Law at 7).

These designations as “nominee,” and “mortgagee of record,” and the Debtor’s recognition thereof, it argues, leads to the conclusion that MERS was authorized as a matter of law to assign the Mortgage to U.S. Bank.

Although MERS believes that the mortgage documents alone provide it with authority to effectuate the assignment at issue, they also urge the Court to broaden its analysis and read the documents in the context of the overall “MERS System.” According to MERS, each participating bank/lender agrees to be bound by the terms of a membership agreement pursuant to which the member appoints MERS to act as its authorized agent with authority to, among other things, hold legal title to mortgages and as a result, MERS is empowered to execute assignments of mortgage on behalf of all its member banks.

In this particular case, MERS maintains that as a member of MERS and pursuant to the MERS membership agreement, the loan originator in this case, First Franklin, appointed MERS “to act as its agent to hold the Mortgage as nominee on First Franklin’s behalf, and on behalf of First Franklin’s successors and assigns.”

MERS explains that subsequent to the mortgage’s inception, First Franklin assigned the Note to Aurora Bank FSB f/k/a Lehman Brothers Bank (“Aurora”), another MERS member. According to MERS, note assignments among MERS members are tracked via self-effectuated and self-monitored computer entries into the MERS database. As a MERS member, by operation of the MERS membership rules, Aurora is deemed to have appointed MERS to act as its agent to hold the Mortgage as nominee.

Aurora subsequently assigned the Note to U.S. Bank, also a MERS member. By operation of the MERS membership agreement, U.S. Bank is deemed to have appointed MERS to act as its agent to hold the Mortgage as nominee. Then, according to MERS, “U.S. Bank, as the holder of the note, under the MERS Membership Rules, chose to instruct MERS to assign the Mortgage to U.S. Bank prior to commencing the foreclosure proceedings by U.S. Bank.” (Affirmation of William C. Hultman, ¶12).

MERS argues that the express terms of the mortgage coupled with the provisions of the MERS membership agreement, is “more than sufficient to create an agency relationship between MERS and lender and the lender’s successors in interest” under New York law and as a result establish MERS’s authority to assign the Mortgage.

Okay, so that’s much of what MERS has to say about why it’s practices are fine and dandy, now let’s take a quick look at what the judge in this case has to say about the assignment of the note, among other things…

Noteholder Status

In the Motion, the Movant asserts U.S. Bank’s status as the “holder” of the Mortgage.

However, in order to have standing to seek relief from stay, Movant, which acts as the representative of U.S. Bank, must show that U.S. Bank holds both the Mortgage and the Note. Mims, 438 B.R. at 56. Although the Motion does not explicitly state that U.S. Bank is the holder of the Note, it is implicit in the Motion and the arguments presented by the Movant at the hearing.

However, the record demonstrates that the Movant has produced no evidence, documentary or otherwise, that U.S. Bank is the rightful holder of the Note.

Movant’s reliance on the fact that U.S. Bank’s noteholder status has not been challenged thus far does not alter or diminish the Movant’s burden to show that it is the holder of the Note as well as the Mortgage.

Under New York law, Movant can prove that U.S. Bank is the holder of the Note by providing the Court with proof of a written assignment of the Note, or by demonstrating that U.S. Bank has physical possession of the Note endorsed over to it. See, eg., LaSalle Bank N.A. v. Lamy, 824 N.Y.S.2d 769, 2006 WL 2251721, at *1 (N.Y. Sup. Ct. Aug. 7, 2006).

The only written assignment presented to the Court is not an assignment of the Note but rather an “Assignment of Mortgage” which contains a vague reference to the Note.

Tagged to the end of the provisions which purport to assign the Mortgage, there is language in the Assignment stating “To Have and to Hold the said Mortgage and Note, and also the said property until the said Assignee forever, subject to the terms contained in said Mortgage and Note.” (Assignment of Mortgage (emphasis added)).

Not only is the language vague and insufficient to prove an intent to assign the Note, but MERS is not a party to the Note and the record is barren of any representation that MERS, the purported assignee, had any authority to take any action with respect to the Note. Therefore, the Court finds that the Assignment of Mortgage is not sufficient to establish an effective assignment of the Note.

By MERS’s own account, it took no part in the assignment of the Note in this case, but merely provided a database, which allowed its members to electronically self-report transfers of the Note.

MERS does not confirm that the Note was properly transferred or in fact whether anyone including agents of MERS had or have physical possession of the Note. What remains undisputed is that MERS did not have any rights with respect to the Note and other than as described above, MERS played no role in the transfer of the Note.

Absent a showing of a valid assignment of the Note, Movant can demonstrate that U.S. Bank is the holder of the Note if it can show that U.S. Bank has physical possession of the Note endorsed to its name. See In re Mims, 423 B.R. at 56-57.

According to the evidence presented in this matter the manner in which the MERS system is structured provides that, “when the beneficial interest in a loan is sold, the promissory note is transferred by an endorsement and delivery from the buyer to the seller [sic], but MERS Members are obligated to update the MERS® System to reflect the change in ownership of the promissory note. . . .” (MERS Supplemental Memorandum of Law at 6).

However, there is nothing in the record to prove that the Note in this case was transferred according to the processes described above other than MERS’s representation that its computer database reflects that the Note was transferred to U.S. Bank.

The Court has no evidentiary basis to find that the Note was endorsed to U.S. Bank or that U.S. Bank has physical possession of the Note. Therefore, the Court finds that Movant has not satisfied its burden of showing that U.S. Bank, the party on whose behalf Movant seeks relief from stay, is the holder of the Note.

So, the judge is saying things that are very similar to what we’ve all heard before, most recently in the Ibanez Decision by the Massachusetts Supreme Court, and in the New Jersey court decision, Kemp v. Countrywide, among numerous others of late. How was the note assigned, was it endorsed properly, can the trustee even produce any evidence that the trust is the holder of the note?

What it would seem to come down to is quite simple, I think…

Does the trust that thinks that it owns the loan, actually own the loan, and can the trustee produce any evidence that it does own the loan?

If the loan was not properly transferred into the trust, and if there is no evidence that the trust owns the loan in question, then it would seem that the investor bought a mortgage-backed security without the mortgage-backed part, and my guess would be that the investors at this point don’t care about the mortgages… they will want their pound of flesh from the bankers whose massive securities fraud has robbed them of untold billions and destroyed the global financial system.

I’m not a lawyer, but with the first investor lawsuit against Bank of America – Countrywide having been filed just a couple weeks ago, and saying basically that the investor was delivered mortgage-backed securities without the mortgages, that’s how I’m seeing it start to stack up.

Now let’s look at what the judge says about the mortgage itself… you see… it’s supposed to follow the note, but when MERS is in the game, it simply doesn’t.

Mortgagee Status

The Movant’s failure to show that U.S. Bank holds the Note should be fatal to the Movant’s standing.

However, even if the Movant could show that U.S. Bank is the holder of the Note, it still would have to establish that it holds the Mortgage in order to prove that it is a secured creditor with standing to bring this Motion before this Court.

The Movant urges the Court to adhere to the adage that a mortgage necessarily follows the same path as the note for which it stands as collateral. See Wells Fargo Bank, N.A. v. Perry, 875 N.Y.S.2d 853, 856 (N.Y. Sup. Ct. 2009).

In simple terms the Movant relies on the argument that a note and mortgage are inseparable. See Carpenter v. Longan, 83 U.S. 271, 274 (1872).

While it is generally true that a mortgage travels a parallel path with its corresponding debt obligation, the parties in this case have adopted a process, which by its very terms alters this practice where mortgages are held by MERS as “mortgagee of record.”

By MERS’s own account, the Note in this case was transferred among its members, while the Mortgage remained in MERS’s name.

MERS admits that the very foundation of its business model as described herein requires that the Note and Mortgage travel on divergent paths. Because the Note and Mortgage did not travel together, Movant must prove not only that it is acting on behalf of a valid assignee of the Note, but also that it is acting on behalf of the valid assignee of the Mortgage5.

Footnote 5 – MERS argues that notes and mortgages processed through the MERS System are never “separated” because beneficial ownership of the notes and mortgages are always held by the same entity.

The Court will not address that issue in this Decision, but leaves open the issue as to whether mortgages processed through the MERS system are properly perfected and valid liens. See Carpenter v. Longan, 83 U.S. at 274 (finding that an assignment of the mortgage without the note is a nullity); Landmark Nat’l Bank v. Kesler, 216 P.3d 158, 166-67 (Kan. 2009)

(“In the event that a mortgage loan somehow separates interests of the note and the deed of trust, with the deed of trust lying with some independent entity, the mortgage may become unenforceable”).
Yes, you read that last part right. The mortgage may become unenforceable. That’s really the 800-pound Gorilla in the room, isn’t it? Do they own it or not, and if they broke the laws, who wins?

Many people get all upset about the idea that a homeowner could not have to pay their mortgage because the laws were broken related to the transfer of the note and mortgage, but I’m starting to think they’re just a bunch of crybabies. The law is the law and if it says that someone doesn’t owe their mortgage, well… good for them.

We’re a nation built on laws and forged by lawyers, and there have been a lot of unpopular decisions that rightly stood because they upheld our nation’s laws… Brown v. The Board of Education comes immediately to mind, but there are many.

We need our plaintiff’s lawyers, our judges and our courts, if we’re going to live through what’s ahead of us. We certainly can’t depend on our legislature or our executive branches… they have, for the most part, been bought and paid for… our system is corrupt with the money of lobbyists. Only our laws and our courts can see us through this, and I’m willing to abide by whatever they say follows the law.

Okay, so here’s just a bit more from Judge Grossman’s analysis and conclusion…

MERS asserts that its right to assign the Mortgage to U.S. Bank in this case, and in what it estimates to be literally millions of other cases, stems from three sources: the Mortgage documents; the MERS membership agreement; and state law.

In order to provide some context to this discussion, the Court will begin its analysis with an overview of mortgage and loan processing within the MERS network of lenders as set forth in the record of this case.

In the most common residential lending scenario, there are two parties to a real property mortgage – a mortgagee, i.e., a lender, and a mortgagor, i.e., a borrower. With some nuances and allowances for the needs of modern finance this model has been followed for hundreds of years.

The MERS business plan, as envisioned and implemented by lenders and others involved in what has become known as the mortgage finance industry, is based in large part on amending this traditional model and introducing a third party into the equation.

MERS is, in fact, neither a borrower nor a lender, but rather purports to be both “mortgagee of record” and a “nominee” for the mortgagee.

MERS was created to alleviate problems created by, what was determined by the financial community to be, slow and burdensome recording processes adopted by virtually every state and locality. In effect the MERS system was designed to circumvent these procedures. MERS, as envisioned by its originators, operates as a replacement for our traditional system of public recordation of mortgages.

MERS argues that it had full authority to validly execute the Assignment of Mortgage to U.S. Bank on February 1, 2008, and that as of the date the foreclosure proceeding was commenced U.S. Bank held both the Note and the Mortgage.

However, without more, this Court finds that MERS’s “nominee” status and the rights bestowed upon MERS within the Mortgage itself are insufficient to empower MERS to effectuate a valid assignment of mortgage.

There are several published New York state trial level decisions holding that the status of “nominee” or “mortgagee of record” bestowed upon MERS in the mortgage documents, by itself, does not empower MERS to effectuate an assignment of the mortgage.

However, the rules lack any specific mention of an agency relationship, and do not bestow upon MERS any authority to act. Rather, the rules are ambiguous as to MERS’s authority to take affirmative actions with respect to mortgages registered on its system.
That’s pretty clear, I think. MERS, you’re going down.

In addition to casting itself as nominee/agent, MERS seems to argue that its role as “mortgagee of record” gives it the rights of a mortgagee in its own right.

MERS relies on the definition of “mortgagee” in the New York Real Property Actions and Proceedings Law Section 1921, which states that a “mortgagee” when used in the context of Section 1921, means the “current holder of the mortgage of record . . . or their agents, successors or assigns.” N.Y. Real Prop. Acts. L. § 1921 (McKinney 2011).

The provisions of Section 1921 relate solely to the discharge of mortgages and the Court will not apply that definition beyond the provisions of that section in order to find that MERS is a “mortgagee” with full authority to perform the duties of mortgagee in its own right.

Aside from the inappropriate reliance upon the statutory definition of “mortgagee,” MERS’s position that it can be both the mortgagee and an agent of the mortgagee is absurd, at best.

Okay, so some of that gets a little technical, I agree, but the last sentence is about as straightforward as it gets… MERS’s position that it can be both the mortgagee and an agent of the mortgagee is absurd, at best. And wait… there’s just a little bit more…

Adding to this absurdity, it is notable in this case that the Assignment of Mortgage was by MERS, as nominee for First Franklin, the original lender.

By the Movant’s and MERS’s own admission, at the time the assignment was effectuated, First Franklin no longer held any interest in the Note.

Both the Movant and MERS have represented to the Court that subsequent to the origination of the loan, the Note was assigned, through the MERS tracking system, from First Franklin to Aurora, and then from Aurora to U.S. Bank. Accordingly, at the time that MERS, as nominee of First Franklin, assigned the interest in the Mortgage to U.S. Bank, U.S. Bank allegedly already held the Note and it was at U.S. Bank’s direction, not First Franklin’s, that the Mortgage was assigned to U.S. Bank.

Said another way, when MERS assigned the Mortgage to U.S. Bank on First Franklin’s behalf, it took its direction from U.S. Bank, not First Franklin, to provide documentation of an assignment from an entity that no longer had any rights to the Note or the Mortgage.

The documentation provided to the Court in this case (and the Court has no reason to believe that any further documentation exists), is stunningly inconsistent with what the parties define as the facts of this case.

However, even if MERS had assigned the Mortgage acting on behalf of the entity which held the Note at the time of the assignment, this Court finds that MERS did not have authority, as “nominee” or agent, to assign the Mortgage absent a showing that it was given specific written directions by its principal.

This Court finds that MERS’s theory that it can act as a “common agent” for undisclosed principals is not support by the law.

The relationship between MERS and its lenders and its distortion of its alleged “nominee” status was appropriately described by the Supreme Court of Kansas as follows: “The parties appear to have defined the word [nominee] in much the same way that the blind men of Indian legend described an elephant – their description depended on which part they were touching at any given time.”

For all of the foregoing reasons, the Court finds that the Motion in this case should be granted. However, in all future cases, which involve MERS, the moving party must show that it validly holds both the mortgage and the underlying note in order to prove standing before this Court.

February 10, 2011

Hon. Robert E. Grossman United States Bankruptcy Judge
~~~

It’s very important to realize that the judge’s findings related to MERS in this case are NOT BINDING ON ANY COURT.

As foreclosure defense attorney Thomas Cox explains:

“Judge Grossman’s findings about MERS are not binding on anyone, because they did not resolve any issue in the case where Rooker-Feldman blocked that inquiry.”
Cox says he won’t be surprised if the MERS/securitization/foreclosure industry spin mentions this point since the law prohibited the judge from going behind the judgment to see how U.S. Bank got the mortgage, then it also prohibited making binding findings about the MERS issue.

Cox further points out…

“On the other hand, with that being so, I am highly doubtful that U.S. Bank and Select Portfolio Servicing could appeal from those MERS holdings because their position in the case was not affected by them. While the judge did allow them to intervene, since the judge’s opinions about MERS are not binding on any court, I do not see how MERS could effectively argue that it suffered a legally cognizable harm. If and when Judge Grossman, or some other judge, in some other case uses the rationale laid out by Judge Grossman to nullify a MERS mortgage assignment, only then will a trustee and/or MERS have any ability to appeal the issue.”
Okay, so that about covers it, I’d say. Below you’ll find the Judge Grossman’s decision in its entirety, and hat tip to attorney Thomas Cox of Portland, Maine for bringing this decision to my attention, helping me to understand it, and continuing to go after the bastards with the strength and tenacity of a Mainer.

Mandelman out.

In re: Ferrel L. Agard, Debtor
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Be Safe Don’t Eat the Fish Or Food From West Coast!

http://www.thelibertybeacon.com/2013/01/22/the-radiation-warnings-you-wont-get-from-the-mainstream-propaganda-machine/

The Radiation Warnings You Won’t Get from the Mainstream Propaganda Machine

Published January 22, 2013, filed under ENVIRONMENT, HEALTH

The mainstream media and the federal government will soon have the blood of the world on it’s hands.

Radiation from the Fukushima Nuclear Plant disaster in Japan is now actively in the ecosystem all along the North American west coast… even the sea weed is now radiated.  The Vancouver Sun reported one year ago that the seaweed tested from waters off the coast of British Columbia were 4 times the amount considered safe.  No further test results were released after the initial report.

The governments of the United States and Canada are not conducting tests for radioactivity – at least not to the knowledge of the public.  Secretary of State Hillary Clinton has agreed to continue purchasing seafood from Japan, despite the fact that the food is not being tested for radioactive contamination.  Last November, independent testing in Japan showed 65 per cent of the catches tested positive for cesium (a radioactive material).  Instead of refusing to purchase the poisoned fish, food safety agencies in both the United States and Canada have simply raised the “acceptable level of radiation.”  We can’t go offending the Japanese after promising to buy their tainted goods, now can we?

After the North American governments refused to fund testing, oceanographer Ken Buesseler, a senior scientist at the non-profit Woods Hole Oceanographic Institution in Woods Hole, Mass, along with Nicholas Fisher, a marine sciences professor at the State University of New York at Stony Brook, and other concerned scientists, managed to secure private funding for a Pacific research voyage.  The results?

Cesium levels in the Pacific had initially gone up an astonishing 45 million times above pre-accident levels. The levels then declined rapidly for a while, but after that, they unexpectedly levelled off.

In July, cesium levels stopped declining and remained stuck at 10,000 times above pre-accident levels.

This means the ocean isn’t diluting the radiation as expected. If it had been, cesium levels would have kept falling.

The finding suggests that radiation is still being released into the ocean long after the accident in March, 2011.

Less than two weeks after the tsunami and subsequent nuclear disaster, Michael Kane, an investigative journalist, reported, “In the wake of the continuing nuclear tragedy in Japan, the United States government is still moving quickly to increase the amounts of radiation the population can “safely” absorb by raising the safe zone for exposure to levels designed to protect the government and nuclear industry more than human life.”

The radiation has absolutely reached the shores of North America.  Water samples from across the continent have tested positive for unsafe levels of radioactivity.  The levels exceeded federal drinking water thresholds, known as maximum contaminant levels, or MCL, by as much as 181 times.”This means that the complete ecosystem of the Pacific Ocean is now poisoned with radiation and we aren’t being warned.

Samples of milk taken across the United States have shown radiation at levels 2000 percent higher than EPA maximums.  The reason that milk is so significant is that it it representative of the entire food supply.  According to an article published on Natural News, “Cows consume grass and are exposed to the same elements as food crops and water supplies. In other words, when cows’ milk starts testing positive for high levels of radioactive elements, this is indicative of radioactive contamination of the entire food supply.”

The GMO Food and Drug Pushers Administration and the EnvironmentalDeception Protection Agency, instead of refusing to prohibit the sale of tainted foods and mandatory testing of foods produced and harvested from the Pacific Coast, have simply raised the “acceptable levels”  of radioactive material in foods.

Clearly, the “it’s-all-for-your-own-good” government will not protect us, or even inform us of the dangers so we can protect ourselves, because it might dip into the pockets of the global elite, the nuclear energy industry, and the food industries.  There is big money behind this cover-up. Refusing to purchase and consume their tainted goods is the best way to fight back, while keeping our families safe and healthy.

How can we protect ourselves? First, be aware of what items are likely to be highly tainted.

1.)  SEAFOOD:  Question the origin of ALL seafood.  Fish and crustaceans from the Pacific Ocean should all be considered to be poisoned with radiation.

2.)  WATER:  The rainfall and snowfall are all radiated.  Do not drink any water that has not been filtered.   The tap water that flows from your faucet has NOT been treated to rid it of radioactive particles. A recent report from the NY Times stated, “A rooftop water monitoring program managed by UC Berkeley’s Department of Nuclear Engineering detected substantial spikes in rain-borne iodine-131 during torrential downpours …

3.) DAIRY PRODUCTS:  Milk and milk products from the West Coast states currently have the highest levels of radiation in North America.

4.)  PRODUCE:  Leafy Vegetables, Wines, Tomatoes, Strawberries….all produce from California or any other West Coast State are also likely to be tainted.

5.)  MEAT:  If a animal eats any leafy vegetable all along the West Coast, that animal has consumed radiation, and is poisoned.  This is any animal from cows, pigs, goats, sheep to wild deer and other game.

If you eat the above foods from areas with high radiation levels, you are eating radiation and feeding it to your children. Slowly the radiation levels within your body will build up.  This is PERMANENT.

Infant mortality rates across the United States have increased by more than 35% since the nuclear disaster, according to a court statement by Dr. with independent scientist Leuren Moret, MA, PhD.  A study published in The International Journal of Medicine indicates that more than 20,000 deaths right here in North America can be directly attributed to the release of radioactive material from Fukushima.

Radioactive isotopes of the type released from Fukushima have a half life of 30,000 years.  This means that we must permanently change the way we prepare our food.

  • Wash your food with soap and rinse it in filtered water. 
  • Be aware of the origins of your vegetables, fish, game and seafood.
  • Keep abreast of radiation levels to help monitor where your food is acquired.
  • Use only filtered water for drinking, cooking and ice.

Read original here: http://www.shtfplan.com/headline-news/the-radiation-warnings-you-wont-get-from-the-mainstream-propaganda-machine_04022012

Millions/Tons Creatures Dying From Mexico to Alaska, Will Not Admit Fukushima Is Cause

Pacific “Horror Show”, From Mexico To Alaska: Millions/Tons Creatures Dying

Thursday, May 29, 2014 13:45
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(Before It’s News)

Scientists are making progress trying to figure out what is causing the mass die-off of sea stars along the entire West Coast of North America. Research suggests an infection is partly responsible for the sickness.

Pacific “Horror Show”, From Mexico To Alaska:  Millions/Tons Creatures Dying

Dear world

The horror show of death continues from approx 2011 onwards… it’s not the death that is horrific… while it very unfortunate…it’s the lack of response from billions of people… who feel they can not do anything…

It is time for each of us, to do more.. to envision a clean planet… your visions of a clean planet, are more important than envisioning a dirty planet… we already achieved that… now we use our ability to envision, to clean up this joint!  Are you powerful enough to envision something that the majority are unable to envision?

Watch the mainstream media come up with syndrome and causes…. anything BUT FUKUSHIMA RADIATION.

Use the violet flame!

How Does the Violet Flame Work?


Saint Germain explains that the violet flame has the ability to change physical conditions because, of all the flames, the violet is closest in vibratory action to the components of matter. “The violet flame can combine with any molecule or molecular structure, any particle of matter known or unknown, and any wave of light, electron or electricity,” he says. Wherever people gather together to give violet-flame prayers, “there you notice immediately an improvement in physical conditions.”

more…. and worth knowing I might add… http://thegoldenlightchannel.com/the-violet-flame-power-of-transmutation

Remember… together we are victorious!

Indian in the machine

 

 

California

Marina Del Rey’s “Horror Show”: Pelican and Anchovy Dieoff

Los Angeles Local News | FOX 11 LA KTTV

 

Bizarre creature’ turned 50 miles of California coast into graveyard in summer 2011 — Gov’t Biologist: Die-off like this never seen here — “Abalone massacre… carcasses of urchins, starfish, other mollusks” — Experts find “alterations in 30 genes, some unknown to science” — “Suddenly proliferating… killing wildlife” (PHOTO)

http://enenews.com/bizarre-creature-turned-50-mile-stretch-of-california-coast-into-graveyard-in-summer-2011-govt-biologist-die-offs-like-this-very-rare-weve-never-seen-it-here-abalone

BC-Mexico: Sea stars,  BC: Oysters and scallops

VANCOUVER – Scientists are making some headway in figuring out what is killing millions of sea stars in the waters off the Pacific coast, from British Columbia to Mexico.

http://www.huffingtonpost.ca/2014/05/04/sea-star-wasting-syndrome-pathogen_n_5261880.html​

 

Globe and Mail, Feb. 27, 2014: Mystery surrounds massive die-off of oysters and scallops off B.C. coast […] Something is killing oysters and scallops in dramatic numbers […] The cause is unknown, but ocean acidification is the main suspect. […] last year, nearby Pendrell Sound had a massive die-off of wild oysters. […] [Rob Saunders, CEO of Island Scallops] has lost 10 million scallops over the past two years, and smaller companies have had similar problems. Mr. Saunders is pushing for a research project to find out what’s happening. […] one of BC’s biggest suppliers of fresh seafood, said the scallop die-off has rung alarm bells.

CBC, Feb. 25, 2014: The deteriorating health of B.C.’s oceans […] Millions of shellfish are dying off before they can be harvested at Island Scallops […] researchers will try to determine if acidification is to blame or if other factors are at play.

http://enenews.com/alarm-bells-massive-die-off-of-oysters-and-scallops-in-pacific-northwest-millions-of-shellfish-are-dying-by-july-mortality-hit-95-to-100-per-cent-deformed-shells-smaller-in-si

 

Alaska – Seals and Walrus

‘Mystery disease’ on Pacific coast of Alaska — Livers ‘crumble’… Hearts enlarged, pale… Yellow lymph nodes… Blood-filled lungs (PHOTOS) — Professor: Worrying there’s no answers, big public health concern — Testing carcasses for Fukushima radioactivity (AUDIO)

 

KNOM, May 14, 2014: Mysterious illness that’s been plaguing seals [first hit] the Bering Strait and the North Slope starting in the summer of 2011. Up to 300 seals were found suffering from hair loss, skin sores, and unusually lethargic behavior. Dozens of walruses were also found with similar sores [causing] marine mammal regulators to declare an Unusual Mortality Event […] walrus have been taken off the UME […] Seals [are still] displaying hair loss […] University of Alaska Fairbanks have begun testing infected seal carcasses for [Fukushima] radiation […] Results should be released in July.

Gay Sheffield, University of Alaska Fairbanks: The lack of answers is worrying. “This has been a big food security, public health concern.”

NOAA (pdf), May 12, 2014: UME will remain open for ice seals (ringed seals, ribbon seals, bearded seals, spotted seals) — based on continued reports of […] disease symptoms

Alaska Dispatch, May 13, 2014: An investigation into a mysterious disease that caused skin lesions and hair loss among Alaska and Russian walruses has been closed without identifying the root cause […] The potential causes looked into […] infections and endocrine disruptions. Also investigated was the possibility of contamination from the Fukushima nuclear plant […] A preliminary investigation in 2012 concluded that radioactive contamination was not the likely cause. Investigators are now looking at the possibility of multiple causes [according to NOAA,] “the theory is that a number of factors contributed to the illness.”

http://enenews.com/govt-diseased-seals-along-pacific-coast-of-alaska-experts-livers-crumble-hearts-enlarged-and-pale-yellow-lymph-nodes-blood-filled-lungs-photos-professor-worrying-ther

 

Is the radiation high enough or should we continue to party?

Japan Times: Fukushima fallout in N. America at 400,000,000,000,000 Bq of Cesium-137 — Study: Hazardous on a ‘continental scale’ — Physicist: “Cancer a certainty” if one radioactive particle ingested — CBS: Inaccurate internet reports stoked fear radiation had somehow come our way (VIDEO)

http://enenews.com/japan-times-fukushima-fallout-america-estimated-400000000000000-bq-cesium-137-experts-hazardous-consequences-continental-scale-physicist-cancer-certainty-one-radioactive-particle-inhaled-ingeste

CA Federal Judge Illston Sends FBI a Message

Judge rules secret FBI national security letters unconstitutional

fbiwarantless12z.jpg

Feb. 10, 2009: The main headquarters of the FBI, the J. Edgar Hoover Building, in Washington, DC.AP

A federal judge has struck down a set of laws allowing the FBI to issue so-called national security letters to banks, phone companies and other businesses demanding customer information.

U.S. District Judge Susan Illston said the laws violate the First Amendment and the separation of powers principles and ordered the government to stop issuing the secretive letters or enforcing their gag orders, The Wall Street Journal reported.

The FBI almost always bars recipients of the letters from disclosing to anyone — including customers — that they have even received the demands, Illston said in the ruling released Friday.

The government has failed to show that the letters and the blanket non-disclosure policy “serve the compelling need of national security,” and the gag order creates “too large a danger that speech is being unnecessarily restricted,” the San Francisco-based Illston wrote.

A Department of Justice spokesman told the Journal the department was “reviewing the order.”

FBI counter-terrorism agents began issuing the letters, which don’t require a judge’s approval, after Congress passed the USA Patriot Act in the wake of the Sept. 11, 2001, attacks.

The case arises from a lawsuit that lawyers with the Electronic Frontier Foundation filed in 2011 on behalf of an unnamed telecommunications company that received an FBI demand for customer information.

“We are very pleased that the court recognized the fatal constitutional shortcomings of the NSL statute,” EFF lawyer Matt Zimmerman said. “The government’s gags have truncated the public debate on these controversial surveillance tools. Our client looks forward to the day when it can publicly discuss its experience.”

Illston wrote that she was also troubled by the limited powers judges have to lift the gag orders.

Judges can eliminate the gag order only if they have “no reason to believe that disclosure may endanger the national security of the United States, interfere with a criminal counter-terrorism, or counterintelligence investigation, interfere with diplomatic relations, or endanger the life or physical safety of any person.”

That provision also violated the Constitution because it blocks meaningful judicial review.

Illston ordered the FBI to cease issuing the letters, but put her order on hold for 90 days so the U.S. Department of Justice can appeal to the 9th U.S. Circuit Court of Appeals.

Illston isn’t the first federal judge to find the letters troubling. The 2nd U.S. Circuit Court of Appeals in New York also found the gag order unconstitutional, but allowed the FBI to continue issuing them if it made changes to its system such as notifying recipients they can ask federal judges to review the letters.

Illston ruled Friday that it’s up to Congress, and not the courts, to tinker with the letters.

In 2007, the Justice Department’s inspector general found widespread violations in the FBI’s use of the letters, including demands without proper authorization and information obtained in non-emergency circumstances. The FBI has tightened oversight of the system.

The FBI made 16,511 national security letter requests for information regarding 7,201 people in 2011, the latest data available. The FBI uses the letters to collect unlimited kinds of sensitive, private information like financial and phone records.

The Associated Press contributed to this report.