March 10th, 2011.
Another headache for all those involved in residential real estate. Or as others see it another business bonanza for lawyers. MERS has created a legal nightmare which could take years to resolve. Title to homes in the past decade and in many states may be flawed.
The Mortgage Electronic Registration System(MERS) is little know firm that has been operating behind the scenes and may be involved with as much as 50% of ALL residential mortgages in the US.
It has fewer than 50 employees. It claims to hold 60 million loans.The New York Times reported on Sunday that "MERS was founded 16 years ago by Fannie and Freddie Mac and big banks such as Bank of America and JP Morgan Chase."
The purpose of creating MERS seems to "speed" and "profits," and not for the protection of buyers or sellers. I think it was created just to help Wall Street in the securitization process that help to create the bubble that burst.
Today many states have ruled that MERS can no longer file foreclosure because it does not actually make or service loans. In many places the actual loan documents were lost or destroyed.
Expect to hear more about MERS in the future.
BillMcInerney
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