Monday, October 11, 2010

MERS, Citibank, Ally named in civil RICO suit; Nation's largest title insurance company denies new title insurance polices to JPM, Ally sales

A civil Rackteering-influence and Corrupt Organizations (RICO) suit has been filed on behalf of Kentucky homeowners against Ally Bank, Citibank, and the major bank-created/funded title middleman front, Mortgage Electronic Registration Service (MERS). From Bloomberg:

"The suit claims that through MERS the banks are foreclosing on homes even when they don’t hold titles to the properties.

'Defendants have filed foreclosures throughout the state of Kentucky and the United States of America knowing that they were not the ‘owners’ or beneficiaries of the loan they filed foreclosure upon,” the homeowners wrote in their complaint filed Sept. 28 in federal court in Louisville, Kentucky.

The homeowners claim the defendants filed or caused to be filed mortgages with forged signatures, filed foreclosure actions months before they acquired any legal interest in the properties and falsely claimed to own notes executed with mortgages."

The title insurance crisis is taking hold as well. The nation's largest title insurance company, Old Republic Title Holding Company, announced that the company has ceased offers of title insurance to all Ally Bank and JPM foreclosure sales. Bank of America, which has already suspended foreclosures in the face of the 40 state AG investigation, is likely next.

If the nation's largest title insurance company is too scared to get near these toxic titles, who will? The plot gets thicker.


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