MERS, a Blast from the Past

By Jann Swanson

Posted To: MND NewsWire

Remember 2010-2011 and the daily revelations about robosigning ? Behind the shortcuts taken by servicers in processing foreclosure documents (sometimes even employing forgery) was their policy of recording mortgages and notes in the name of Mortgage Electronic Registrations Systems, Inc. (MERS) to avoid recording subsequent assignments to individual lenders or servicers when loans were sold or servicing rights transferred. This practice facilitated sales and transfers and avoided the cost of making assignments but became problematic when those loans fell into default and the chain of title became unclear. When robosigning hit the headlines and it appeared that lenders had foreclosed on loans that they technically did not own or had foreclosed in the name of MERS when only the mortgage but not…(read more)

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