mers c.e.o. r.k. arnold says the system was designed to reduce paperwork. >> the mortgage industry saw a need for a database to house that information. >> reporter: there's a lot of information-- home loans are packaged, bought and sold on a regular basis. mers' job is to keep track of who owns what. >> what we track are the parties that have those documents; so we don't have the documents, but we point to the parties that do have those documents. >> reporter: mers has come into the crosshairs because it is foreclosing on properties, but its authority to do that is being challenged. consumer attorney ira rheingold says mers doesn't have the right to foreclose. >> when mers goes to court and says, "i have a right to foreclose against your home," courts are saying, "but wait a second-- if you're going to take someone's home, you have to establish that you have a legal right to their home." >> reporter: what gives mers the right to foreclose? >> the mortgage-- the borrower and the lender have both agreed

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mers has 64 million loans in its dada base.ose, it simply turns to mers for the necessary documentation. much faster and cheaper than retrieving local title records. but the mers papers, like those for this woman's home sometimes don't reflect the true status of the mortgage. >> we're seeing forgeries. we're seeing back-datings. we're seeing post-datings largely because lenders are scrambling to come up with a chain of title that mers was ill-equipped from its inception to provide. >> and allan joins us now from new york. allan? >> that's right, ali. mers does tell us that they're providing clarity, transparency, efficiency to the home finance systems. they say they're being very, very helpful. indeed, citimortgage says it relies on the mers database here in order to take action against people who are in default. but as we point out, lawyers for homeowners increasingly are attacking the way that mers does business. >> the woman you just spoke to in that story says mers was ill equipped from the beginning to handle this. why is

mers.s an electronic repository to keep track of the real owners. mers has 64 million loans in its date that base. if a bank wants to foreclose it simply turns to mers for the necessary documentation. much faster and cheaper than retrieving local title records. but the mers papers like those for her home sometimes don't reflect the true status of the mortgage. >> we're seeing forgeries. we're seeing backdatings. we're seeing post datings. largely because lenders are scrambling to come up with a chain of title that mers was ill equipped from its inception to provide. >> mers says it provides clarity, efficiency, transparency to the housing finance system, indeed, citi mortgage says it relies on mers' data. but increasingly lawyers for homeowners are challenging the way that mers operates. tony? >> so, allan if she is delinquent on her payments, the question is can she ultimately win here? >> well, she certainly can delay foreclosure. this is an interesting legal tactic and it could certainly

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to the extent there is litigation with mers, as i said earlier, i am aware of the litigation around mers. it is still in the lower courts. so, i cannot really imagine the outcome, but we're watching the uncertainty in the market. >> i read in the paper that one of the too big to fail in churches went through title insurance companies that were balking at issuing policies, and offered to indemnify them. if the two big to fail indemnifies and it blows up, guess who pays for it? we have tarp ii unless the dog frank bill liquefies them. it is not a good answer. it is in play, but a little bit frightening. speaking of frightening, i will move on to fannie and freddie who are also co-owners of mers and apparently did billions of dollars of securitization space upon it. certainly someone at fannie and freddie thought about mers. what diligence did they do? did they receive legal opinions, and if so, could we see them as to the efficacy of the mers program? >> cannot testify as to what fannie mae and freddie mac did in reference to mers. mers has been part of the mortgage securitization system f

mers has 64 million loans in its data base.lose, it turns to mers for the necessary documentation. much faster and cheaper than retrieving local title records but mers papers sometimes don't reflect the true status of the mortgage. >> we're seeing forgeries. we're seeing backdatings. we're seeing post-datings because lenders are scrambling to come up with a chain of titles that mers was unable to provide. >> mers says it provides clarity, transparency and efficiency to the housing finance system. citimortgage tells cnn it relies on mers data to pursue clients who are delinquent on their mortgage payments but lawyers for homeowners are increasingly challenging the way mers operates. >> whether a foreclosure, mounting debt or a lack of savings, the financial crisis of the last two years has impacted all of us. cnn's soledad o'brien has been busy putting the final touches on a brand new special almighty debt. this one is near and dear for a lot of people because they've been struggling with debt but when you look at how the church

morgan chase says they are no longer using mers for foreclosures.d to bring in our guy, clyde anderson. good to have you here. >> good to be here. >> man, people are freaked out. they are facing foreclosure. i mean, it's hard not to hyperventilate. >> foreclosure is still foreclosure. you are going to lose your house because you are behind in payments. the thing is, they are talking a freeze. some banks are going to stop selling foreclosed properties. some people are going to continue to sell them. it doesn't mean stop paying your mortgage. >> if you are facing foreclosure right now, there are some out there. it's a possibility your process is going to be delayed at least. it's possible. do we know the numbers? >> in 23 states, most lenders stopped them. they have the toughest laws. they have to go in front of a lawyer or a judge. the judge has to make a decision. you have to have all your paperwork right. a lot of times, the paperwork is not right. >> remind us, how did we get here in the first place? >> they started seeing cases where people were

the mortgage electronic registration system, known as mers, keeps tabs on 66 million mortgages.ut its legal authority is now being questioned. today, j.p. morgan chase said it no longer uses mers to process foreclosures. >> tom: here are the stories in tonight's n.b.r. newswheel: stocks saw their biggest gains in more than week, with the major indices at their highest closes since may. at the bell, the dow gained 75 points, the nasdaq added 23 and the s&p 500 rose eight points. big board volume spiked above a billion shares for the first time in over a week, while nasdaq climbed back above two billion. despite all the concern about foreclosures, the number of people applying for mortgages rose for the first time in six weeks, thanks to record low interest rates. but it was a surge in re- financing that led the way as homeowners look to lower their monthly payments. as for people wanting to buy homes, that number dropped for the first time in three weeks. still ahead, is the recent run- up in commodities about more than the falling dollar? we'll ask our "street critique" guest. h

inside the mers computer. but with no official paper trail, lenders are scrambling to produce documents they have the right to foreclose. >> i think it's going to complicate the market with a lot of questions, a lot of things people don't understand and your average home owner is confused on this. >> reporter: the fear is that with so many foreclosures on hold across the country, the housing market will now be clogged up with homes that can't be bought or sold. john blackstone, cbs news, san francisco. >> rodriguez: and then there is the unemployment problem. in the final report before the midterm elections, the labor department said today the jobless rate held steady in september at 9.6%. it has now topped 9.5% for 14 straight months for the first time since the great depression. the economy last month lost another 95,000 jobs overall, though it did create 64,000 private n the private sector. wall street hopes that the jobs report will spur the fed to take more action to stimulate the economy and with that th

what does mers have to say about all of this? >> they say they provide clarity, transparency and deficiency to the mortgage finance system and citi relies on the da for people delinquent on the mortgages but lawyers going after mers for the way it operates. >> all right. well, we'll follow to follow it with you. thanks so much. >>> this is something that has science fiction written all over it. but it's not fiction. it's fact. a healthy baby boy born in may from an embryo that was frozen for almost 20 years. cnn's john roberts talked this morning with the director of virginia clinic that did the transfer and, john, it is remarkable an embryo frozen for 20 years produces a healthy baby. how does that happen and why did it take 20 years for them bring owe to be used? >> it is remarkable. it is like a real-life rip van winkle story. the oldest embryo used was 13 years previous to this and pushing the envelope out another seven years. 42-year-old woman, trying to get pregnant for ten years. she went to the jones institute for reprodu

what happened here was sixty two million mortgages are held in the name of mers the mortgage electronicregistration system which is just an electronic database it doesn't own anything it doesn't have any employees it doesn't have a location it's just electronic and the reason they set it up that way was so that these mortgage backed securities that all the mortgages are turned into. would be investment grade for the investors in order to get a aaa rating. vehicle to kind to it that these mortgages would all pass through had to be what's called a bankruptcy remote that means that it couldn't own anything so in other words. if if that entity mergers were to go bankrupt it would take all their other properties would wind up being part of the bankrupt state and so to avoid that it's it is merely a kind to it so it's merely. that the mortgage is passed through it to to the actual investors that's the deal that's where it's set up but the problem is courts have now held that mergers it breaks the chain of title because mers has been for closing in its own name and the courts have held the cou

she thought of mer mother as the spider, someone who protects her young who prepares the nest. and she was very, very de voted to her mother. i think it's gotten the public excited about public art. people pay attention to their environment. they wonder what's going to pop up next. so it's been incredibly positive. >> the public's art program, it's reputation has been spread nationally and internationally. so what do you think has been the affect or the utility of having a temporary arts program for you? >> i think with the temporary art work, everyone is sort of willing to take a chance. it allows us to be a little more risky. look at risks that are a little more experimental, a little more edgy. and often it represent less of an investment to public funds because we're not acquiring a work. we're often paying for just the transportation and installation of the work. >> so what do you think it has contributed to san francisco, this 40-year-old program? >> well, we've contributed more than 1,000 art works to the city. you can find art work in practically every public facility.

when banks sell mortgages, they use mers to keep track of the real owners. if a bank wants to foreclose, it simply turns to mers for the necessary documentation, much faster and cheaper than retrieving local title records. but the mers papers like those for the home sometimes don't reflect the true status of the mortgage. >> we're seeing forgeries, we're seeing back datings, post datings. largely because lenders are scrambling to come up with a chain of title that mers was ill-equipped from its inception to provide. >> mers says it helps the process work better because it technique of tracking mortgages and holding title provides "clarity, transparency, and efficiency" to the housing finance system. but several recent state court decisions have ruled against mers serving as a nominee for the actual mortgage owner and ordering documents tailored for a foreclosure. >> so we understand she's challenging the filings. what does that mean for her potentially? >> well, it does mean that the homeowner probably will be able to stay in the home longer. i mean, ultimat

the principal is not allowed to take into account mer. that's a weird way to run a set of schools. >> it's a very weird way at the principal cannot really put the best athletes on the field, ifou will. lesley, charter schools are not the onlyossible solution to th challenges our publi education system faces, righ for example, they haveimited reurcefor students wi specneeds or disabilities. so how do apply the good things about charter schools to the entire system? i think the most important thing that we can learn from charter schools is we take the things that they're doing that are working, you know. as eva was saying, there is the freedom to choose your own team. so one of thethings tha we're really missing inmerica is we don't cultally value our teachers. it's not a prestigious position. now sure we vae some of them, but you don't have a lot of -year-olds growing up and sayinghat i really wanto do in life is become aeacher. d a t of the topcountries, i useto t in jap en i wa younger. and i got so much respect and i was a young teacher

la cara de la mer asomÁndose por la ventandelatÓ al sospechoso este buen samaritano colocÓ su vehÍculoco a dios por haberme puesto en el camino para ayudar a ta niÑa, dijo vÍctor pÉrez. la niÑa habÍsido secuestrada en las afueras de su casamientos jugaba con unas amas. por mÁs que su madre testigos corrier detrÁs de la miona no pudieron alcanzarla. >> la policÍa lo comenzÓ a seguir. >> se cieron larga las horas esperando el momento de encontrarla. >> adornan la residencia de la familia a quienes aconsejan a a otros padres nca perderÁ sus hijose vista. >> la menor a quien no identificamos debido a lo delicado del caso fue trasladada al hospital. ella fue sometida a aluaones fÍsicas y psicolÓgicas. >> quÉ tristeza que se repitan casos como Éste tan frecuentemente. grias. en oas informaciones del hombre que intentÓ hacer explotar una bomban nueva york pasarÁ el resto de sus vidas en prisiÓn al eschar la sentencia lanzÓ amenazas contra estados idos diciendo que el paÍs deberÁ gar por ocuparnos en las musuanas. >> desafiante, declarÁndose un soldo musulmÁn, escuchÓ su sentencia y dijo que s

measure in november of 2008, from the transportation terminal from san francisco, through gill roy, to mer said, then down the central valley on down then to bakers field, la, and anaheim. then there will be branches off that from la to the inland empire, riverside to san diego. >> can i go to carmel? >> no. but you can take a cal train line from gill roy on down to monterey. >> with the dates you just gave us beginning of 2011 and then mid 2012, so start digging 2012. 2011 you have to have, all the desk have to be in a row by then, correct? >> all the environmental review and contracts have to be done. >> does any of that change or get accelerated if that $50 billion plan comes through congress. can they sago, go faster? they can sago tas ster. we will need about $20 billion from the federal government, $18 billion. we received 2.25. that will allow us to begin our construction on our starter line from san francisco to anaheim right away and carry it right on through. >> do you think it is likely since you said 50 billion and you said 20, that is a big chunk for one place. >> but californ

business of making money so they would come up with a solution and as david said, it may not be the merfekt solution, but it would be a solution and a direction or path which you could move forward to solve this problem on a regional basis and global basis. >> thank you. that's an interesting way to go about this, to consider. thanks. >> hello. i come from san diego, the hydraulic center is nonprofit training operation. most recently we're involved north california trying to increase water efficiency on the largest reservoirs there. out of this project which is a legislation project. i think there are lessons that might be relevant for what we're talking about here and i'd like to make three points. the first point pertains to issue of uncertainty. there are two issues there. characterizing uncertainty. that means uncertainty in our large scale models and down scaling, but also in demand, population growth, and other areas. the second issue with uncertainty is communication. i think that should not be underestimated because i think that will make for an effective public engagement and e

now on this mers issue, a number of these banks have been caught in court unable to prove that they actuallylosed on because they were transferred digitally from bank to bank using the electronic registration systems which were popular during the subprime era. the end result is no one knows where the paperwork is that the borrowers originally signed. >> all 50 states are now opening their own investigation. why can't it just become a federal investigation? >> well, you know, it's interesting. originally it looked like the federal government was just going to stand down and let the states handle it on their own really in the interests of getting these investigations wrapped up as quickly as possible and these foreclosure freezes lifted as quickly as possible. we do see that all 50 attorneys general have teamed up to launch this investigation under iowa attorney general tom miller, but we have seen the federal attorney general also come out and say that the department of justice is going to look into this. we also have seen the senate banking committee schedule a hearing on november 16th for r

top stories from the week moscow's mer is almost two decades in charge the president says he lost trust in the capital's leading. rusher eyes a rising sun in the east with a major oil pipeline to china helping to clear the way for future big deals with its biggest trading partner. and the double edged sword of afghanistan's deadly drugs crop of virus destroys swathes of opium poppies with hello when prices keep officials addict. hello it's a pm sunday night here in moscow this is r t i'm kevin owen with a roundup of the top stories from the week. long serving mayo was shown the door by the president this last week to be to medvedev said he lost confidence in your food worked eighteen years as the capital's chief. leaves behind a controversial legacy loved by some but hated by others as i. explained. i decided to dismiss the mayor of moscow the decree i resigned states that this president have lost trust in your. once deprived of power the phone support to the top was hard to come by a challenge it's obvious the professional relations between the president and moscow men had worsened mea

thar w mer, fek lyo warmer, uras fecyoort coming up. [ male announcer ] taxes. so who called prop 13 a "fraud" and a "rip off?" jerry brown. who raised the gas tax as governor, and pushed for higher sales taxes? jerry brown. who tried five times to raise property taxes in oakland? jerry brown. who supported higher statewide income taxes? jerry brown. and who says, if elected, he'll ask voters for even more new taxes? jerry brown. governor jerry brown, again? hide your wallet. >>> the hunt is on for a man who tried to kidnap a 5-year-old girl in the east bay. it hneapped yesterday near the corner of sunny view and knob hill avenue. the older girl told police a man circled around several times before he grabbed her sister and tried to pull her into his car. that's when the 10-year-old girl said she fought back. >> i wasn't thinking of nothing, i was just trying to get my sister back. >> he had a gun, he was going to kill them. he was going to tell their parents. and they were going to come and live with him. >> the grandmother did not witness the reported incident

legal uncertainty surrounding the mortgage electronic registration systems, known as mers, has complicated the process. the center for responsible lending c.e.o. martin eakes says that's making it difficult to know who has the right to foreclose. >> i don't know how you fix that, i think it will take legislation to set up a national electronic registry if the problem of doing local filings is really such a big problem. >> reporter: but paul willen, a researcher for the federal reserve bank of boston, says cutting mortgage payments won't solve the problem either. >> we cannot prevent millions of foreclosures by changing the incentives with intermediaries, or come up with some previously unimagined shared appreciation scheme that makes everyone better off. that's been the roadmap for three years. >> reporter: it will take years and a lot of tough decisions to redesign the mortgage finance system, but harvard business school professor david scharfstein says the system can be fixed. >> if we do the system right and reform it-- which will involve, i think, more regulation of securitization and

with an outsized mers nallty and incredible story of survival. meet our people's plate list champion. >> announcer: from the global resources of abc news, with terry moran, cynthia mcfadden and bill weir in new york city, this is "nightline," october 1st, 2010. >> good evening. we begin tonight with every parent's nightmare. the heart-rending story of tyler cle clementi, who ended his life after his roommate allegedly broadcast a sexual encounter over the internet. tyler's parents says quote, we hope this will serve as a call for compassion, empathy and human dignity. and new details of cle men tip's online activity have emerged. linsey davis has the inside story. >> reporter: the last 48 hours of tyler clementi's life played out online. revealing the perils of living in a digital age. some might call it the death of privacy. yesterday, police identified the body of the 18-year-old rutgers university freshman and talented violinist who jumped off the george washington bridge to his death last week. jumping off the gw bridge. sorry. he posted thes

no matter how long it takes, chile's president and the first lady are personally welcoming each mer to the surface. 23-year-old carlos ma'am mamani, only miner not from chile, was visited today by his president, bolivia's leadervo morales. he offered him land and a job if he came home. mamani said he would rather stay with hrothers in his new country, chile. once all the rescues are over, the president of chile says this mine will close forever. brian? >> kerry sanders tonight from the scene as we now head into this second night of it. and we keep coming back to the families of these miners from those at the top of the list to the bottom, from the first to emerge to the last, what must that be like? you've seen the above ground celebrations with each new emergence. it means for them at least the ordeal is over. tonight, from the scene, our own natalie morales has their story. >>eporter: a hug probably never felt so good. it was so beautiful, like a rebirth says this woman. she never stopped worrying about her father, mario goz, the ninth miner brought to the surface. her mother greeted

it's set up but the problem is courts have now held that mergers it breaks the chain of title because mershas been for closing in its own name and the courts have held the course it's the defendants that have pushed this argument but the courts have agreed that murderess can't own anything by its own admission it doesn't earn anything and therefore it can't hold title so i can't convey. so i can't assign title to the real owners here would be that they'd be investors whoever put up the money those are the real owners so now that banks are scrambling around i mean those lawsuits have been out there for three years now ever since about i think it was november of two thousand and seven . so they've been gradually that argument has been gradually. getting stronger and said the banks are trying to get around it and they've come up with this robo signing cloyd where people are signing late every just the few people i mean and these are not lower level people these are high level people who know what they're doing a few people are stuck signing late ten thousand affidavits a month in order to sup

does something constructive no there's nothing there let's move on to other foreclosure crisis in the mer america j.p. more. of course essential to this new crisis again fraud being their principal business tell us about what the what the foreclosure pipeline looks like for j.p. morgan so we get an idea of what their earnings might be or not be in a company with no book value and three months down the road be aware when you use the term earnings again the using an accounting term right and not to pick on you because all of well i. understand that in a business model based primarily on fraud you need to have a separate nomenclature continue because most media and everybody else in the cells i was to use a kind of term earnings that's the view ward from doing business that can be manipulated j.p. morgan and again not to pick on j.p. morgan and many of the other banks increase their earnings during the week quarter by releasing provisions and he serves for future and present risks. in my opinion that's a mistake the justification for doing it was that the credit metrics were improving margin

discouraged merchants from promoting the use of competing credit cards with lower fee autos the companies put mer dmants in a no-win situation. accept the card. pay fees. and don't think about trying to get a discount. >> and official as nouns aid proposed settlement with both visa and mastercard. >> history made at under the circumstances us supreme court today for the first time, three women now sit on the highest court. justice elana kagan took her seat and will have to recuse herself from two dozen cases because she was involved in them at the justice department before joining the supreme court in august. >> and the nobel prize for medicine awarded today to a man whose pioneering research helped start millions of families. robert edwards is one of the scientists developing in veto fertilization. here is he celebrating a birthday with lieu ease brown, the world's first so called test tube baby. edwards now 85, began research at university of cambridge 50 years ago. four million babies have been born through in veto. >> and money scope headlines, at twitter evan williams removed himself as the