My pride as a Kansan, though generally strong, is a hot and cold affair. For the first day of autumn, things are running hot!

In Landmark National Bank v. Kesler (full ruling), 2009 Kan. LEXIS 834, the Kansas Supreme Court held that a nominee company called MERS has no right or standing to bring an action for foreclosure. MERS is an acronym for Mortgage Electronic Registration Systems, a private company that registers mortgages electronically and tracks changes in ownership. The significance of the holding is that if MERS has no standing to foreclose, then nobody has standing to foreclose – on 60 million mortgages.Ellen Brown
Author, Attorney

As attorney and homeowner advocate Neil Garfield said, the implications cannot be overstated here. What I love about this ruling is that it takes a seemingly indecipherable morass like the mortgage market of the last twentyish years and boils it down to the simplest of contract law principles. Garfield explains, “the splitting of the note and mortgage creates an immediate and fatal flaw in title.”

“The splitting of the note and mortgage creates an immediate & fatal flaw in title.”

Bam. Done. Case Closed. Thank you, Kansas Justice! Or as Matt Taibbi puts it, “It seems that a court has ruled that about half of the mortgage market has been run as a criminal enterprise for years, which would invalidate any potential foreclosure proceedings for about, oh, 60 million mortgages.”

Now, for those of you that want a bit more of the mucky-muck, I’ve got more detail from Ellen Brown after the jump and it is still quite digestible. Also, what does this mean for actual human beings, you ask?
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