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NEW MERS Rider the Banksters will use on New Loans

cloudedtitlesblog.com | May 2, 2014


The author of this blog site is a paralegal and a consultant to attorneys. He is NOT an attorney. For legal opinions and legal advice, seek the advice of an attorney who has been to law school and didn’t fall asleep in Contracts or Property 101. What you’re about to read takes MERS to a whole new level (how could they stoop any lower) especially if you’re in a deed of trust State like Washington! The items posted here are the author’s thoughts and opinions on this subject matter.

CAVEAT EMPTOR has taken on a whole new meaning folks, especially if you’re in a deed of trust State like Washington, whose Supreme Court has ruled that MERS is NOT a beneficiary! MERS and its minions have decided to muddy up the waters further with a new rider … a MERS RIDER. Why on earth would you let this bunch into your Deed of Trust contract is beyond me. In short, since there is so much confusion as to the term NOMINEE, this new RIDER will clarify it for you. I have inserted the Rider into this blog post (along with my comments in bold-faced type).

The Fannie Mae/Freddie Mac Uniform Instruments (forms of any nature) appear to have gotten a little more verbose with this Rider, which among other things:


Here’s excerpts from what you can expect to see at the closing table (if it was me, I wouldn’t sign it … I would walk out of the closing immediately!):

THIS Mortgage Electronic Registration Systems, Inc. RIDER (“MERS Rider”) is made this ________ day of ___________________, ______, and is incorporated into and amends and supplements the Deed of Trust (the “Security Instrument”) of the same date given by the undersigned (the “Borrower,” whether there are one or more persons undersigned) to secure Borrower’s Note to ________________________

(“Lender”) of the same date and covering the Property described in the Security Instrument, which is located at: [Property Address]

2. So instead of hiding in plain sight, the lender, who intends on securitizing your promissory note… is now going to come out in the open with this tripe and make your problems worse by giving you what it deems (or seems to be) FULL DISCLOSURE! Signing this MERS RIDER appears to amend your Deed of Trust to include MERS’ role as being so omnipresent, it invites robosigning and document manufacturing … in fact … it’s seemingly bringing it to a whole new level! Here’s more …

In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree that the Security Instrument is amended as follows:


The Definitions section of the Security Instrument is amended as follows:

“Lender” is ______________________. Lender is a ____________________________ organized and existing under the laws of ______________________. Lender’s address is ______________________________________________. Lender is the beneficiary under this Security Instrument. The term “Lender” includes any successors and assigns of Lender.

“MERS” is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is the Nominee for Lender and is acting solely for Lender. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. MERS is appointed as the Nominee for Lender to exercise the rights, duties and obligations of Lender as Lender may from time to time direct, including but not limited to appointing a successor trustee, assigning, or releasing, in whole or in part this Security Instrument, foreclosing or directing Trustee to institute foreclosure of this Security Instrument, or taking such other actions as Lender may deem necessary or appropriate under this Security Instrument. The term “MERS” includes any successors and assigns of MERS. This appointment shall inure to and bind MERS, its successors and assigns, as well as Lender, until MERS’ Nominee interest is terminated.

Notice the definition language above that says “The term “MERS” includes any successors and assigns of MERS.” ? It never identifies WHO these successors and assigns are, does it? I can’t find it anywhere. I also don’t see MERSCORP Holdings, Inc. mentioned anywhere in here, do you? Further, a new sentence has been added at the end so that YOU, as the Borrower, are appointing MERS into your contract, where you will virtually become MERS’s “bitch”. If you think you’ve seen everything, just wait until MERS comes waltzing into court with this Rider!

Imagine what the judge is going to say … “You signed it!” What are you going to say then? Are you foolish enough to sign this? MERS and the Lender must thing that you as a Borrower are a real dumb ass! You’ll sign anything because you want the keys to the house! Well … let’s see if you can resist temptation now. (After reading this Rider, I almost vomited!)

The Definitions section of the Security Instrument is further amended to add the following definition:

“Nominee” means one designated to act for another as its representative for a limited purpose.

MERS RIDER – Single Family – Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3158 04/2014

(The above “footer” is what you’ll see on your “appointment rider” they’re going to shove in front of you to sign at closing! The title company or escrow agent will probably play this off as “nothing”. They are all in on the scam!) Here’s another section you can look forward to amending at closing:


The Transfer of Rights in the Property section of the Security Instrument is amended to read as follows:

This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower’s covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in the __________________ of ____________:

[Type of Recording Jurisdiction] [Name of Recording Jurisdiction]

which currently has the address of _______________________________ [Street] _______________, __________ (“Property Address”): [City] [State] [Zip Code]

It may seem confusing reading the above language … after all … the deed of trust model is where the Borrower is supposed to convey to the Trustee in trust, with power of sale, in case the trustee (who is supposed to be fair and impartial) has to foreclose and sell your Property because you couldn’t pay on your promissory note, right?

TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the “Property.”

3. There’s more new language below (italicized):

Lender, as the beneficiary under this Security Instrument, designates MERS as the Nominee for Lender. Any notice required by Applicable Law or this Security Instrument to be served on Lender must be served on MERS as the designated Nominee for Lender. Borrower understands and agrees that MERS, as the designated Nominee for Lender, has the right to exercise any or all interests granted by Borrower to Lender, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, assigning and releasing this Security Instrument, and substituting a successor trustee.

What this appears to say is that YOU … as the Borrower … are now going to allow MERS and its minions (not MERSCORP, who owns MERS) to do everything the trustee can do … this smacks down the Montana Supreme Court’s decision against MERS in the recentPilgeram case, because NOW, you let MERS do all this to you … plainly spelled out in the contract! What will you say to the judge then? (“I’m an idiot your Honor? I should’ve walked out of closing instead of signing this Rider?) Here’s more additions to the existing language:


Section 15 of the Security Instrument is amended to read as follows:

15.Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower’s notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower’s change of address. If Lender specifies a procedure for reporting Borrower’s change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender’s address stated herein unless Lender has designated another address by notice to Borrower. Borrower acknowledges that any notice Borrower provides to Lender must also be provided to MERS as Nominee for Lender until MERS’ Nominee interest is terminated. Any notice provided by Borrower in connection with this Security Instrument will not be deemed to have been given to MERS until actually received by MERS.Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument.

Sale of Note; Change of Loan Servicer; Notice of Grievance … Section 20 of the Security Instrument is amended to read as follows:

20.Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. Lender acknowledges that until it directs MERS to assign MERS’s Nominee interest in this Security Instrument, MERS remains the Nominee for Lender, with the authority to exercise the rights of Lender. A sale might result in a change in the entity (known as the “Loan Servicer”) that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser.

Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party’s actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20.


Section 24 of the Security Instrument is amended to read as follows:

24.Substitute Trustee. In accordance with Applicable Law, Lender or MERS may from time to time appoint a successor trustee to any Trustee appointed hereunder who has ceased to act. Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon Trustee herein and by Applicable Law.

BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this MERS Rider.







Again, the foregoing are my thoughts on the subject. You can read and interpret this as you see fit. This is probably one of the more important posts you’ll read here, because this four-page MERS Rider gives MERS all the latitude it needs to:

1. Manufacture whatever documents that MERS minions (MERSCORP-contracted members’ employees) deem fit to steal your house, whether it’s legal or not, by notice and sale;

2. If you file suit and take the case to court (judicially), MERS will come in and continue to misrepresent to the court that it holds “legal title” to your Property, meaning that it has the right to be “noticed”. This is part of what this Rider is all about, giving MERS notice rights that it really doesn’t deserve to have;

3. Foreclosure defense attorneys have argued in the past that MERS does NOT have the right to appoint a substitute trustee to foreclose on your Property. By signing this RIDER, you’ve just made it easier for MERS and the Lender to do anything they want to, whether or not they’re the real party in interest (or not). By signing this RIDER, it appears you’ll clear the way for a successful foreclosure by ANY PARTY that wants to come in and foreclose … whether they are the real “boss of the note” or not;

4. You’re stuck with MERS until the MERSCORP-contracted member-lender says MERS isn’t part of your contract. Good luck with that. What happens if the Lender goes under and doesn’t repudiate the MERSCORP executory contract it signed with MERSCORP in bankruptcy?

5. As usual, what you aren’t being told is that your promissory note is going to be securitized (allegedly) and some investor pool is going to get screwed again like they all did in the financial housing bust of 2008! … and

6. With MERS getting NOTICE RIGHTS under this RIDER, this will make it much harder to quiet title to a piece of property because MERS doesn’t know who the real parties in interest are (especially if the MERSCORP member decides NOT to record its transfer in the MERS database!)

MERS’ counsel will continue to come into court and assert that MERS has all of the foregoing rights now, because you just let it in by contract! MERS’ counsel will NOT admit that all members using MERS are really members of MERSCORP Holdings, Inc.!

Are you that desperate that you would do such a thing and strip away all your rights and just let the entire MERS network of member lenders and servicers (who have contracts with MERSCORP, not MERS) ride herd all over you and your property rights? This RIDER may just be the chokehold the banking industry was looking for!

Here’s where the real test of “rubber meets the road” is going to matter … what will YOU DO at the closing table?

You may screw your piece of Property for generations to come! Again (if it were me) … I would NOT sign this Rider. See if your attorney agrees!

Get a property law attorney to analyze this Rider (one that’s not a MERSCORP member)! If you want a copy of this Rider, please email me through the Clouded Titles website. If you want a complete education in this stuff … visit the Clouded Titles website!


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CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

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