Waiting for the second boot to hit the floor. MERS

[Aaria]

From Chinkinthearmor.net

Although only bankers are aware of it, there is a second wave of economic disaster starting to build up that will make the earlier one pale into insignificance. Let us start out with MERS, shall we?

MERS - Mortgage Electronic Registration Inc. - holds approximately 60 million American mortgages and is a Delaware corporation whose sole shareholder is Mers Corp. MersCorp and its specified members have agreed to include the MERS corporate name on any mortgage that was executed in conjunction with any mortgage loan made by any member of MersCorp.

Thus in place of the original lender being named as the mortgagee on the mortgage that is supposed to secure their loan, MERS is named as the “nominee” for the lender who actually loaned the money to the borrower. In other words MERS is really nothing more than a name that is used on the mortgage instrument in place of the actual lender. MERS’ primary function, therefore, is to act as a document custodian.

MERS was created solely to simplify the process of transferring mortgages by avoiding the need to re-record liens – and pay county recorder filing fees – each time a loan is assigned. Instead, servicer's record loans only once and MERS’ electronic system monitors transfers and facilitates the trading of notes. It has very conservatively estimated that as of February, 2010, over half of all new residential mortgage loans in the United States are registered with MERS and recorded in county recording offices in MERS’ name.........................

Complete story here: http://chinkinthearmor.net/Who_Is_MERS_.html

[Ruby the Liberal]

1. Didn't click though, so this may be redundant, but this is the basis for the "show me the note"

defense.

[ellenfl]

2. mers is merely a clearing house.

they never hold the note or mortgage but have the authority to sign the satisfaction of the mortgage once the loan is paid off. plus, they know who does hold the note and mortgage. this benefits the lenders, who were often negligent in recording assignments when they sold the debt, and the closing agent who handles the sale of the property because s/he can insure clear title. lack of recorded assignments has been a major problem with mortgage loans which are sold more than once, making mers a godsend to closing agents and sellers.

i don't know where this guy got his info but, as he said, mers is merely the nominee for the lender (says so right on the mortgage) and mers always knows who the current holder of the note and mortgage is. in my many years in lending, as a real estate paralegal and in dealing with mers, i have never had a problem finding out who the current mortgage holder was nor in getting a lien satisfaction recorded.

i love finding that mers is involved in a seller's mortgage. it makes my job of getting the mortgage paid off and the lien satisfied tons easier.

ellen fl