The Mortgage Electronic Registration System, known as “MERS”, fallout just keeps getting better.
In recent months legal challenges have arisen regarding alleged inadequacies and improprieties in the foreclosure process including allegations of insufficient or incorrect supporting documentation and challenges to the legal capacity of parties right to foreclose.
Consistent with the Membership Rules there will be a 90-day comment period on the proposed Rule. During this period we request that Members do not commence foreclosures in MERS name.
I’m not so sure “alleged” is the word I would use considering bankruptcy courts are finding MERS to be non-compliant with existing law.
MERS and its partners made the decision to create and operate under a business model that was designed in large part to avoid the requirements of the traditional mortgage-recording process. The court does not accept the argument that because MERS may be involved with 50 percent of all residential mortgages in the country, that is reason enough for this court to turn a blind eye to the fact that this process does not comply with the law.
It would appear, contrary to Fight Club dogma, that someone with slower motions than a hummingbird can indeed catch Tyler at work in this real life version of Project Mayhem.
But what I find so amusing, is that I haven’t heard one whiff of this story from mainstream media. And why would they? Imagine the financial and sociological fallout of telling 50% of Americans with a mortgage that their mortgage is non-compliant with existing law. Moreover, with such a dependency upon MERS (to save a few bucks on paperwork) over the last few years, it will be interesting to see if the “wet ink” note can be produced to prove ownership.
That’s mayhem on a scale even The Joker would envy.