Homeowners to Sharecroppers: MERS Lobbyists Descend Like LocustSubmitted by bobbyw24 on Sat, 11/20/2010 - 09:34
MERS Lobbyists Descend....
And threaten, I'm sure....
The focal point of their efforts is Mortgage Electronic Registration Systems, or MERS, the controversial, privately run electronic database that is used by practically every lending institution and investment company to track the transfer of the ownership of mortgages as they are packaged into securities and traded at lightning speed around the globe.
But MERS does more than just track the trading of loans. In the vast majority of mortgage documents at local courts and offices across the country, it is listed as the holder of the loans. That allows the financial industry to trade mortgages as much as it wishes without spending the time and money to refile the paperwork.
The industry is seeking legislation that would effectively affirm MERS's legality and block any bill that would call into question what MERS does. MERS has spent more than $1 million in lobbying since fall 2008, when lower courts around the country began to rule against it. But MERS had kept its name under the radar until the recent uproar over foreclosures revealed broad problems in mortgage paperwork.
Of course it is.
But let's analyze this.
First, there are two parts to a mortage - and MERS only tracks one. That is, the deed - the recorded part of the mortgage - is what MERS tracks. The promissory note is not recorded, and MERS does not track that.