MERS speeds mortgage loan procedure, yet increases significant issues

The real estate situation happened for many reasons. MERS was one of these. It was something the public couldn’t see. According to the Nolan Chart LLC mortgage industry website, MERS (Mortgage Electronic Registration System) is an institution that enables the Mortgage Backed Security (MBS) industry to pass over rules regarding recording and transferring title when a property changes hands. Created by Fannie Mae within the mid-1990s, MERS acts as a quasi-agent (they call it “nominee”) for any party that becomes involved in the home loan, with the exception of the homebuyer. Any online transactions are done via MERS. It is convenient to be able to bundle, buy and sell mortgages with the MERS electronic network that provides speed. But since Fannie Mae – which handles well over 50 percent of all U.S. home loans – is now owned by the United States Treasury, various sources have raised the question of whether MERS has the legal right to be listed! on mortgages in the first place, thinking about the company never pays for any property.

Tons of people wondering about MERS

The most significant question raised by the operation of MERS, particularly as it relates to potential mortgage fraud, is whether the company should be able to listen itself on electronic home loan documents, as MERS has neither paid for any property nor represented the mortgage holder in any tangible lawful way. MERS’ streamlined method of recordkeeping has not set well with mortgage industry critics, as the old methods of mortgage processing documentation constituted lawful transaction in the past. Nolan Chart reports that critics are legally concerned about MERS’ claim to represent 60 million mortgage cases. The Supreme Court will likely get involved in the case that comes from MERS that has no free market competition but represents $10 trillion in mortgages. The question of whether MERS should have the right to foreclose homes must be answered to the satisfaction of the law.

State intervention makes a ton of profit

MERS would not be anywhere with public funding. It benefits a lot from funding. When there is no way to regulate prices with free market competition, the public should be worried, says Nolan Chart. The contract law loopholes that have allowed MERS to operate thus far have expedited the MBS. That industry is largely responsible for creating the U.S. housing crisis within the first place. MERS might just get picked up by the highest court. This may be for the benefit of all homebuyers.

Discover more information on this subject

Nolan Chart

nolanchart.com/article8006.html

Wikipedia

en.wikipedia.org/wiki/Mortgage-backed_security

Freddie Mac commercial on mortgage fraud

youtube.com/watch?v=cS2HsaBA5No