The real estate crisis happened for many reasons. One that has remained largely hidden from the public until now is MERS. Transferring title when hands is done by the Mortgage loan Backed Security (MBS) industry which, Nolan Chart LLC mortgage loan industry blogs reports, MERS (Home loan Electronic Registration System) controls. Developed by Fannie Mae in the mid-1990s, MERS acts as a quasi-agent (they call it “nominee”) for any party that becomes involved within the home loan, with the exception of the homebuyer. MERS transacts in an online (rather than brick-and-mortar) world. Speed is the primary reason people like the MERS electronic network that bundles, buys and sells home loans quickly. But since Fannie Mae – which handles well over 50 percent of all U.S. home mortgages – is now owned by the U.S. Treasury, various sources have raised the question of whether MERS has the lawful right to be listed on mortgages in the first place, considering the company never pays for any property.
No paper trail when numerous suspicious of MERS
Since MERS didn’t pay for the property of represent the mortgage holder in any legal way, many wonder if MERS is starting to be committing home loan fraud while working with electronic mortgage documents. MERS’ streamlined method of recordkeeping has not set well with mortgage industry critics, as the old methods of mortgage processing documentation constituted legal transaction within the past. MERS claim to represent up to 60 million mortgage cases, reports Nolan Chart, is legally questionable within the minds of critics. That’s over $10 trillion worth of mortgages, and it seems likely that a company like MERS – with little or no free market competition – can be listening to from the Supreme Court before long. The law satisfies whether MERS really has the right to foreclose on homes.
State intervention creates profit machine
MERS be anywhere with public funding. It benefits a lot from funding. Thus, argues Nolan Chart, the public has a right to be skeptical when little to no free market competition exists to regulate prices. There are contract law loopholes that the MERS is working under. This is to expedite the MBS mostly. That industry is largely responsible for creating the U.S. housing crisis within the first place. MERS might just get picked up by the highest court. This may be for the benefit of all homebuyers.
Additional reading
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
