U.S. Regulators Examining Departures at Mortgage Electronic Registrations Systems (MERS)


U.S. Regulators Examining Departures at Mortgage Registry

As the rest of the housing industry recovers, a little-known firm with a key role in U.S. mortgage finance remains stuck in limbo, wrestling with regulators, lawsuits and the departures of senior employees.

The turbulence feeds uncertainty about the fate of Mortgage Electronic Registrations Systems Inc., or MERS, which documents the ownership and resale of about half of U.S. home loans. A breakdown could force clients such as Fannie Mae (FNMA) and Bank of America Corp. to make costly changes to their loan businesses.

Management hasn’t completed fixes promised in a broad 2011 U.S. settlement designed to stop foreclosure abuses, according to two people briefed on MERS’ operations. Regulators rejected one of the firm’s consultants as unqualified and are examining why four employees hired to help with reforms — including the chief legal officer — recently quit, said the people, speaking on condition of anonymity because the matter is private.

The closely held Reston, Virginia-based firm, a unit of Merscorp Holdings Inc., is also facing scores of lawsuits and state probes that challenge its business model as well as the legality of its filings in hundreds of county courthouses.

“Merscorp Holdings Inc. has an unwavering commitment to work with regulators under the consent order and to take all necessary steps to make the company and our members stronger,” President and Chief Executive Officer Bill Beckmann said in an e-mailed statement. He said the company can’t comment on personnel or its communications with U.S. agencies.

The biggest customers of MERS are also owners: Fannie Mae, Freddie Mac (FMCC) and Bank of America. Others with stakes include Wells Fargo Inc., Citigroup Inc. (C) and the Mortgage Bankers Association.

‘Certain Defects’

“If the use of MERS is found not to be valid, we could be obligated to cure certain defects or in some circumstances be subject to additional costs and expenses,” Bank of America reported in a February filing. “Our use of MERS as nominee for the mortgage may also create reputational risks for us.”

Fannie Mae, in its annual financial report filed in February, also noted the potential effects if the lawsuits or regulatory pressures force changes in MERS.

“A large portion of the loans we own or guarantee are registered in MERS’s name and the related servicing rights are tracked in the MERS System,” Fannie Mae’s report said, adding that if the firm couldn’t function in the same way, lenders could be forced to go back to time-consuming and expensive methods of recording land transfers.

Be sure to check out the rest from Bloomberg here…



24 Responses to “U.S. Regulators Examining Departures at Mortgage Electronic Registrations Systems (MERS)”
  1. human being with no monetary gain says:

    most homeowners get a attorney who works on both sides the mortgage company and the defendant vizthis is called a crook with a hook meaning your lawyer will sell you out at any time if the price is right so this means you must do a little homework yourself to know if your lawyer is working exclusively on your behalf you also can make him sign the affidavit saying that he has no conflict of interest with your financial institution who is allegedly holding your note NFL to doing so you would like for you to do a level 3 forensic audit of your securitization a securitization all this is worth its weight in gold to f*** these demons who prey on your religious belief system to do nothing and let the Lord fix it

  2. hammertime says:

    My case is a snapshot of what happened to us and our country. We were blamed for the crisis and then they were forced to accept blame but in the end we were not allowed to “benefit” from the harm they did to us while they took the money and ran. We were robbed on the way in and the way out while being told to clean up the mess. Bonnie G when was your home “sold”? There’s momentum building on the message board to start a homeowner focused group, if we can get some basic information going and sharing we can start building pressure. I understand I have my ups and downs and feel beat up at times but faith and what’s right will carry us through.

  3. Mike Drouin says:

    Well Hammertime , we are hanging on by a thread a this point and even though we have compelling evidence that I already sent to the Justice Department and have compiled even more ,the Justice Department won’t do anything about it ,Our Senator’s won’t acknowledge it , the Judges won’t allow the precedent to be set against the Banks , The media won’t report it , and our Government went along with it ????
    The President and Justice Departments went as far as to acknowledge an ” Abuse ” but have stopped short of admitting the Crimes that have been and are being committed not only against American Citizens and families , but against the very principle of what this Nation stands for !
    I didn’t create these circumstances , they did ! You have a good understanding of what’s going on and what needs to happen but the powers that can really do anything about it , aren’t ! and I’m sure you can understand my frustration when those who have taken an oath of office to protect the constitutional rights of every person , have failed miserably !!!
    This isn’t just a few people this happened to , but millions of Americans and if you have read the post of as many as I have of people crying out for help as , you get as bitter as one can get knowing the truth .
    They held our feet to the fire and tried taking everything we put our heart and soul into and rightfully belongs to our children as an inheritance ,The Banks have received ” unjust enrichment ” by the hand of the powers created for our protection !!! If anyone should get a ” free house ” as you put it ,because the Banks are held accountable for their crimes ,it would be better than the status quo and true Justice would be done as the Banks would receive repayment for their attempt to ” steal ” control of the Mortgage industry…

    • hammertime says:

      Completely agree, meant to answer earlier but was putting out a fire this week. If we can hang on and not let go it may be time the dam finally breaks and the corruption and unfairness cannot be denied. If we can lay out our “extreme” cases it can be very effective. And if they are the norm there is no way the American people will stand for it I have to believe. If not the norm then we can show the arrogance and the injustice at all levels and hopefully put an end to our individual limbos while helping the next round of abuse. There’s a good effort that is getting started on the message board and the cases on this thread can be great examples to get the message out. There are elections coming up!

  4. leapfrog says:

    “If the use of MERS is found not to be valid, we could be obligated to cure certain defects or in some circumstances be subject to additional costs and expenses,”

    Yeah, we can’t have THAT. Can’t have the banksters feeling OBLIGATED or incur additional costs or expenses. That won’t be ALLOWED to happen by our corrupt, captured, crony bankster-enabling “regulators”.

  5. GuyFawkes says:

    Geez, let’s see…..what does it mean when the rats are leaving the sinking ship???

  6. mkd says:

    In my state MERS is not considered a beneficiary according to the law. So all of those assignments they did in the name of MERS saying they are also transferring the note are all void. However, I have not heard of anyone getting their home back because of this. No matter how you look at it, what the banks, MERS, attys and f/c mills did, doesn’t matter. We have all been robbed.

  7. Vic Hentz says:

    “lenders could be forced to go back to time-consuming and expensive methods of recording land transfers”

    You mean the “ol fashioned way” where someone actually went down to the courthouse, registered the deed/mortgage/note/whatever and PAID THE TRANSFER TAXES!

    MERS has been on big tax dodge scam for the banksters from day one.

  8. Joseph Rykiel says:

    Great! Another major plank in one’s Foreclosure Fraud Defense!:)

  9. Bonnie Green says:

    Mers is on one mortgage filed and since that filing my mortgage has been messed up and our payments were ridiculously high and unmanageable for years. Having no one to negotiate our situation and then forgeries n fraud. Lost my home of 40 years! Is there any help for us. My house is sitting there empty with a fir sale sign now for four months.

    • Mike Drouin says:

      Hi Bonnie , It doesn’t matter how long you have owned your home and what integrity you have displayed over the years , Our major financial institutions in an act of mortgage piracy ,just property laundered billions of dollars worth of mortgages into their possession ! They made a total mess out of a perfectly good recording system that has kept record of land transfer for nearly three hundred years .
      They have bought legislation through Congress that allowed them to commit crimes against American families and financially slaughtered those in pursuit of the American Dream , and if that wasn’t enough , they scammed the insurance companies and collected , in full ,the money on all the mortgages that went into default , Plus took your home for resale ! They sent that money to off shore accounts to show a loss and received billions in TARP money from the Obama Administration , and if that wasn’t enough they paid a ” twenty five billion dollar settlement ” to the States Justice Departments to stand down while they commit these ” CRIMES ” and our complaints to these entities who have been created for our protection , fall on deaf ears ! Because the Banks are financially more powerful than us , they create fraudulent documents that have a ” cloaked legitimacy ” and the Court rules in their favor allowing them ” unjust enrichment ”
      This is not just frustrating , but disturbing to say the least !!! It was set up !!! Done on purpose !!!

    • hammertime says:

      I don’t want to give you false hope but there are legal services that claim you have a year to file a lawsuit and have sale rescinded or cancelled. If your “lender”/servicer was on settlement you may want to review the judgement and review violations. One of the standards is to show proper authority/right to foreclose and chain of title which is where MERS involvement may be questionable.

      • Mike Drouin says:

        Some people do win their cases , but the chances are slim to none Here is our case # 1:11-CV-00596-JL US District Court District of NH , Drouin vs AHMSI .After we got by the standing issue , we were railroaded in Discovery . The Assignment of Mortgage that was being argued by Wells Fargo’s Lawyer and submitted in the Land Records is as Fraudulent as they come . It was fabricated by their Servicer American Home Mortgage Servicing INC (AHMSI) NKA , Ockwen .
        After spending thirty thousand dollars in attorney fee’s we were moved to settle with them , even by my own Lawyer , but we refused ,
        Wells Fargo does not own my House !
        AHMSI / Ockwen has no rights to my House and has committed Mortgage Fraud !They should be held accountable !
        People are not yet up to speed on what just took place in America and what it means for us as a Nation . Even those directly effected by the Crimes our Domestic financial institutions have committed on American families . Owning a Home is the cornerstone of the ” American Dream ” and can be considered a families most prize possession .
        Our GOD given Right to Life , Liberty , and the pursuit of Happiness has been Violated while the entities created for our protection stand down . Liberty and Justice for all huh ? Not any more …..

    • calibre2 says:

      the odds are the present value of the home is substantially less than the old ‘loan’ amount. Just buy it back.

      • hammertime says:

        These are the things we need to think about and not be distracted by the noise. On the other hand we are experiencing bubbles in some areas such as mine which makes it impossible for those still feeling the effects of the economy. While this could be part of a NEGOTIATION it is not the basis for our struggle based on principle and the damage done to us and our country. Even if it were low though the reality is that those harmed haven’t been helped directly in many cases no matter what the stock market says.

    • Bobbi Swann says:

      Bonnie -you need to pay heed to the post from Hammertime. if I owned my home for 40 years you would be da** sure that I would be fighting to get it back!

      • Mike Drouin says:

        well Bobbi , your advice to Bonnie should state that her pockets better be deep to pay for the Litigation to try to win her house back and she should know that the Cards are stacked against her . I’m not trying to discourage her , but as I said in my post , people just don’t realize the magnitude of what just took place in America . If the Courts were to allow Justice on behalf of Bonnie , myself and Millions of others . our Economy would be destroyed !

      • hammertime says:

        The settlements are a tool that can be used until the courts catch up which they are starting to do. We can’t go along with their too big to fail, sky is falling mentality. I’m sorry you’re still having to fight, Mike but your story can help push things forward. Remember, the banks benefited to the tune of trillions and the settlement money has been wasted or used for other purposes. Those are facts and we need to use them to force the lenders and politicians to do right by us and stay out of court until the tide completely turns if possible. We don’t have to win a free house etc although even that would be a fraction of what the banks have benefited. There’s a real compromise and settlement that still needs to happen. We’re in a “sweep it under the rug” stage and we have to bring out their dirty laundry which is what their marketing people and the politicians fear the most. Hang in there!

      • r b houseng says:

        I suggest people who think this would destroy our economy take a lesson from Iceland. Here is an article:


        Everyone in our country needs to band together to protest and demand forgiveness of mortgage debt and return of property to the homeowners. The economy will improve.

      • Bonnie Green says:

        I agree Hammertime and Bobby Swan, i have not stopped fighting, but went past my home yesterday and they took down our shed and back porch, their wont be much left if they keep going. Hope to win even though it seems gloomy right now! They destroyed my family and we are all trying to heal now.
        All the best to everyone. DON’T QUIT

      • r b houseng says:

        Bonnie Green: You are not alone. The LLC that did a bid rigged “purchase” of the lien and is claiming ownership on that basis completely gutted my home. All the plumbing ripped out. Walls ripped out. Landscaping ripped out. Patio cover ripped out. Horrid paint color throughout interior and exterior. All without a permit. Somehow the City discovered and made them get a permit. But is ignoring stuff being done not listed on the permit, including new windows throughout. How does the inspector not notice that? Bribery? What proof is needed. I am clinging to the belief they will be forced to pay for undoing all damages they inflict on the property when I get it back. If I locked someone out of their home and then destroyed it, I would be made to repay damages if caught, right? That is what they are doing to our homes. I just wish I could find a way to stop them right now while it is being sorted out.

        Someone sent me a link to a new article on MERS being investigated, but I haven’t had a chance to read it yet. Good things may be starting to happen.

      • Bonnie Green says:

        Thanks for your story and understanding the pain we have experienced. I too know exactly what you are experiencing.
        Please contact me at bgreen50@optonline.net if you hear anything promising. I always worry that i will miss out when help comes along.
        Im 63 n really had hoped to have my retirement property returned as i am now without any retirement nest egg.
        All my best to you

      • Bonnie Green says:

        HAMMERTIME I WAS EVICTED FROM MY HOME BEGINNING OF february. I lost all of my possessions because i could not afford to get stuff out of storage. That story for another time
        My home was actually foreclosed in June 2012, then i was allowed to rent fir about 10 months, as i was hit by Hurricane Sandy.
        My lawyer(s ) threw my case.
        The Judge however did tell the lawyers make this work He said you have two working individuals here. But it never happened as i have MULTIPLE sclerosis n i relapsed n trying to recover n be in excruciating pain n trying tp fight the devil at the same time was impossible.
        The judge was Justice Tom Adams of Nassau Supreme Court on Long Island. Im too financially broke to be able to fight.
        I continued to call Attorney General Eric Schneiderman for help as well as text him. Finally one day i get a call from one of his assistants Dana Levy, she was nice and said she would try to help me. Yet i have not heard back for over a month now.
        If you are going to put something together about our stories let me know. I shared only a little bit as there is so much more.
        Thanks for concerns and your advice.

      • hammertime says:

        @ Bonnie I’m sorry to hear of your struggles but it’s all too familiar. I will email you. If anyone wants to leave contact info go here http://bit.ly/Si8EL5

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