Feb 17, 2011
MERS to banks: Don’t use our name
17 Feb 2011
Posted by Andrew Kantor
If you don’t read HousingWire at least occasionally, you really oughta. It’s one of the best real estate news sources out there. Today’s interesting tidbit: Mortgage Electronic Registration Systems, a/k/a MERS, is telling the lenders that use its services not to foreclose in its name. MERS is a major part of the mortgage fraud scandal — it’s being investigated by all 50 state attorneys general looking into forged documents, robo-signing, and other, um, shortcuts to the foreclosure process.
MERS suggested that members bring foreclosures “only in the name of the holder of the note, in the name of the trustee or the servicer of record acting on behalf of the trustee.”
Some folks were already there. Last May, Fannie Mae told its servicers not to use MERS’s name. Ditto JP Morgan & Chase in October. And last week a Federal judge ruled that MERS lacked the authority to transfer and assign mortgages.