MERS Defined in GARFIELD GLOSSARY

see mers-admits-no-interest-in-mortgage-and-no-loss-on-default

see glossary-mortgage-meltdown-and-foreclosure

MERS

(Mortgage Electronic Registration Systems, MERSCORP):

A technology platform in which “members” gain access through password and user ID. Estimated number of employees is 17. Estimated number of “officers” self appointed is in the thousands. The platform is devoted to “servicing” participants in the securitization chain of mortgages. The platform allows members to enter data without any verification for authenticity or veracity and is frequently changed to reflect a member’s needs in litigation, foreclosure or other matters. Members also are allowed to appoint themselves as executives or employees of MERS for the purpose of executing assignments and other documents relating to mortgages, investor distributions etc.  The sole purpose of MERS is to circumvent the recording statutes in states, tax evasion, evasion of RICO enforcement, and to create a veil preventing the borrower from discovering the identity of creditors and to prevent a complete accounting for the securitized transaction. MERS is often named on Deeds of Trust as the beneficiary despite the fact that it has no financial interest in the obligation, note or mortgage and promises not to assert any such claim as part of its contract with members. MERS is also named as Mortgagee in Mortgages. In all cases, MERS is named as “nominee” allowing members to privately record transfers of notes and other indicia of ownership of the loan, despite the fact that the creditors are neither the members nor MERS. MERS is also used after the closing documents are executed by “assignment.” Verification of the above definition can be found on the MERS website at www.mersinc.org. See also mers-admits-no-interest-in-mortgage-and-no-loss-on-default

5 Responses

  1. Where does MERS admit that its assignments are not worth anything? MERS has no right to payments, servicing, or any of the mortgaged properties per its terms and conditions, but where in the terms and conditions does it say that MERS cannot assign the beneficial interest that it took as a nominee?
    It is perfectly legal in California to have a nominee serve as a beneficiary under a deed of trust. Moreover, if MERS is a nominee then why can’t it act as an agent when executing the assignment?

  2. PJ –

    I just emailed it to Neil if he wants to post it.

    Steve
    99Libra@gmail.com

  3. Libra, MER’s has a multitude of subsidiaries, but I would think that anyone in CA would be interested in that document. Why not scan it and post it here if you can.

    Also forgot to mention before that I am finding many assignments to HUD by the servicer we deal with.What’s up with that?

    It also might be of value to read the audit/report just released on Lehman Brothers, which peaked my interset since they were involved with the servicer we have in variious MBS offerings.

  4. I have a document stating that MERS was suspended from doing business in Calif as of 05/21/2002. Not sure if it would hold up in court or not, but I’ll gladly email it to anyone who wants it. Part of the shell game they play is MERS stands for Mortgage Electronic Registration Systems [plural], while MERS in Calif stands for Mortgage Electronic Registration System [singular].

    Steve
    99Libra@gmail.com

  5. While researching an individual that signed on our assignment, I came across an assignment in Idaho, with the very same person representing the servicer, (with us they represented the bank) assigning the mortgage to MER’s.

    How is this possible when MER’s has no financial stake?

    The other weird thing with that assignment, was that there was no property address listed on the assignment.

    And yes this very same signatory is working at 3 different organizations simultaneously, in three different states, but that is nothing new to anyone here.

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