Rolling Stone magazine blogger Matt Taibbi, recently posted a description of MERS which helps explain the Mortgage Electronic Registration System. Mr. Taibbi’s post is timely because it helps explain the entity and its process which is causing such problems with Florida’s foreclosures.
Mr. Taibbi’s post is helpful because MERS’s self-description of its business and mortgage registration process on its website is confusing. According to MERS (http://www.mersinc.org/about/index.aspx), “MERS was created by the mortgage banking industry to streamline the mortgage process by using electronic commerce to eliminate paper. Our mission is to register every mortgage loan in the United States on the MERS System. … MERS acts as nominee in the county land records for the lender and servicer. Any loan registered on the MERS System is inoculated against future assignments because MERS remains the nominal mortgagee no matter how many times servicing is traded.”
Mr. Taibbi’s post helps explain this confusing self-description through the use of a metaphor. (http://www.rollingstone.com/politics/blogs/taibblog/an-extremely-long-metaphor-to-explain-mortgage-chaos-20110101) This metaphor involving a truck and large family helps one understand what MERS does and how MERS has caused such a problem in the foreclosure process.
Because foreclosures can be complicated, mortgagors and mortgagees would do well to retain competent local counsel in all foreclosure actions. If you have any questions about your mortgage or foreclosure, call Brad Hogreve at 941-364-2455.