andyetf

Understanding MERS

In Uncategorized on March 19, 2011 at 8:49 am

MERS is a way for mortgage companies to sell mortgages to one another quickly and with low cost. MERS is a straw party named as the owner of the mortgage. But it doesn’t really own it. But on county records across the country, MERS appears as the owner of millions of mortgages. As I said, the system was designed to avoid the costs involved in transferring mortgages among different owners. In theory, MERS keeps track of who owns the underlying mortgage. In practice, MERS does not keep accurate records. According to a recent study, fewer than 30% of mortgages held by MERS had accurate records.

And so the system, designed by the mortgage companies for speed and to control costs, is going to make solving the foreclosure problem much slower and more expensive.

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