America’s housing situation was caused by numerous factors. One that has remained largely hidden from the public until now is MERS. MERS (Home loan Electronic Registration System) enables the Home loan Backed Security (MBS). The MBS is really in charge of transferring titles from hand to hand, says Nolan Chart LLC. Developed 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 mortgage, with the exception of the homebuyer. Any online transactions are done through MERS. It is convenient to be able to bundle, purchase and sell mortgages with the MERS electronic network that provides speed. 50 percent of the U.S. home loans are now owned by the United States of America treasury as it is now owns Fannie Mae. Now, many wonder why MERS, as a company that pays nothing on the mortgage loan, is listed on the mortgage loan or if it is even legal.
No paper trail while many suspicious of 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 mortgage documents, as MERS has neither paid for any property nor represented the mortgage loan holder in any tangible lawful way. MERS has a very streamlined method of recordkeeping that mortgage industry critics do not seem to like. They think that past ways of legally processing documents are much better. MERS says, says Nolan Chart, it represents 60 million mortgage cases. Critics question this number. If that number is true, $10 million in mortgages are being represented by MERS with no free market competition. This means the Supreme Court will probably get involved quite soon. The question of whether MERS should have the right to foreclose homes must be answered to the satisfaction of the law.
State intervention creates a large amount of profit
MERS sits in a position of great privilege and benefits from public funding. Thus, argues Nolan Chart, the public has a right to be skeptical when little to no free market competition exists to regulate prices. The contract law loopholes that have allowed MERS to operate thus far have expedited the MBS. The industry helped with the U.S. housing crisis. It created many of the problems. MERS might just get picked up by the highest court. This might be for the benefit of all homebuyers.
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
