1 vote

MERS? It May Have Swallowed Your Loan

MERS? It May Have Swallowed Your Loan
By MICHAEL POWELL and GRETCHEN MORGENSON

FOR more than a decade, the American real estate market resembled an overstuffed novel, which is to say, it was an engrossing piece of fiction.

Mortgage brokers hip deep in profits handed out no-doc mortgages to people with fictional incomes. Wall Street shopped bundles of those loans to investors, no matter how unappetizing the details. And federal regulators gave sleepy nods.

That world largely collapsed under the weight of its improbabilities in 2008.

But a piece of that world survives on Library Street in Reston, Va., where an obscure business, the MERS Corporation, claims to hold title to roughly half of all the home mortgages in the nation — an astonishing 60 million loans.

http://www.nytimes.com/2011/03/06/business/06mers.html?_r=1&...




Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

So, who is MERS accountable

So, who is MERS accountable to? Reminds me of the fusion centers. One of the few legitimate purposes of gov. is to protect us from fraud. Out of 50 states, would you think just one would step up in a big way?

Trust in God, but tie your camel tight.

"Socialism needs two legs on which to stand; a right and a left. While appearing to be in complete opposition to one another,they both march in the same direction." - Paul Proctor

bump

I wish more people would

I wish more people would litigate this issue and expose the accounting/booking entries. Lest see what the banks mean by "loan". They usually say "the note is evidence of a loan" hmmmm....does that mean they are saying the bank borrowed us their own money??? I think not. I have a theory. If the banks take the original note and sell it/deposit it to fund the "loan" then th note creates the borrowed money. So if the banks paid their bills (pursuant to GAAP) then the home would be zeroed out. I believe the banks takes the original and once its cashed, the original would be evidence of the transaction, so the either cant reproduce it, or dont have it and only electronic copies are available. If one were to make the bank produce the original note, then examine it under a microscope, I believe it would be a fake. This would mean the banks acted in fraud when they made representations to investors to buy MBS that were backed by a house......however since the original (collateral) had been cashed and the original note separated from the mortgage.....foreclosure is unenforceable, and the bank knew it! Im trying to prove this....we will see how it goes.

good read.

good read.

Some real estate agents refuse to sell

houses right now...I know one of 'em. They know the whole enterprise is a fraud. Why create "money" with your signature that the "bank" wants you to pay back with interest when they are fully paid in three days and are then making more money trading on the mortgage while collecting funds from you every month?

War is a racket. Mortgages are a racket.

Search has several threads on

Search has several threads on MERS back into 2010. Anyone know of org or website following current development on this?

Trust in God, but tie your camel tight.

"Socialism needs two legs on which to stand; a right and a left. While appearing to be in complete opposition to one another,they both march in the same direction." - Paul Proctor

Thanks .... passing on to

Thanks .... passing on to family looking to buy home.
Obviously, this is a major concern.

Would it be correct to say that what MERS has done is little different than people who 'jump titles' in selling cars?

Trust in God, but tie your camel tight.

"Socialism needs two legs on which to stand; a right and a left. While appearing to be in complete opposition to one another,they both march in the same direction." - Paul Proctor

SteveMT's picture

Yep, They want to "Stramline the mortgage process".....and

"eliminate paper." In other words, the middle man...the local, county, and state governments, so that MERS doesn't have to file and pay for filing any "unnecessary" documents.

Link to their website:

http://www.mersinc.org/about/index.aspx

About MERS

MERS was created by the mortgage banking industry to streamline the mortgage process by using electronic commerce to eliminate paper. Our mission is to register every mortgage loan in the United States on the MERS® System.

Beneficiaries of MERS include mortgage originators, servicers, warehouse lenders, wholesale lenders, retail lenders, document custodians, settlement agents, title companies, insurers, investors, county recorders and consumers.

MERS acts as nominee in the county land records for the lender and servicer. Any loan registered on the MERS® System is inoculated against future assignments because MERS remains the nominal mortgagee no matter how many times servicing is traded. MERS as original mortgagee (MOM) is approved by Fannie Mae, Freddie Mac, Ginnie Mae, FHA and VA, California and Utah Housing Finance Agencies, as well as all of the major Wall Street rating agencies.

Welcome to MERS!

MERS is an innovative process that simplifies the way mortgage ownership and servicing rights are originated, sold and tracked. Created by the real estate finance industry, MERS eliminates the need to prepare and record assignments when trading residential and commercial mortgage loans.