Curious Puzzle fraught with lack of understanding

A front page article in today’s St. Pete Times by Susan Taylor Martin shows that employees at Nationwide Title Clearing company in Pinellas County had little knowledge about the thousands of mortgage assignment documents they have been signing.

Taylor says in the article:

“Nationwide Title does not prepare foreclosure documents. However, it does process assignments of mortgage, which transfer ownership of a loan from one party to another and are key in determining who has the legal right to foreclose.”

However, one of the things that Martin misses is that once these mortgages are “assigned”, no transfer fees are paid to the counties, which cost them Billions of dollars in lost revenue. A recent Associated Press article covered how Mortgage Electronic Registry Systems, Inc. (MERS) operates to the detriment of the Counties.

Another thing is that these “assigned” mortgages become publicly-traded tax-exempt municipal bonds. Not only do investors profit from the interest and tax-free nature of the bonds, the underlying mortgages are GURANTEED BY FEDERAL TAX PAYERS.

The Nationwide Title Clearing Official Website says in part:

“We specialize in… assignments, MERS services…”

What this means is that if there is a default on the bonds, you and I step up to pay the investors.

Sweet deal for investors, huh? Sucks for taxpayers.

<IMHO> Fred Jacobsen

 

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One Response to “Curious Puzzle fraught with lack of understanding”

  1. Very nice work! jp

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