More on MERS, but reminding you that we need to separate the value & utility of technology from the use of it –
The MERS structure is coming under intense scrutiny:
– Christopher Peterson has written a paper outlining his perspective on the situation (abstract below); it has an interesting perspective
– there is movement for a Federal "solution" to issues surrounding the legal legitimacy of MERS (my bet is yes – there will be a Federal solution)
– a Google blog search reveals all sorts of chatter and information (this is a good example of the power of "web 2.0" in bringing main-line media attention to a topic)
- if you’re dealing with a MERS loan, be extremely careful – and consider a reach out to in-house counsel in order to understand the company’s approach to this situation, before you take any action.
Abstract of Peterson’s paper:
Hundreds of thousands of home foreclosure lawsuits have focused judicial scrutiny on the Mortgage Electronic Registration System (“MERS”). This Article updates and expands upon an earlier piece by exploring the implications of state Supreme Court decisions holding that MERS is not a mortgagee in security agreements that list it as such. In particular this Article looks at: (1) the consequences on land title records of recording mortgages in the name of a purported mortgagee that is not actually mortgagee as a matter of law; (2) whether a security agreement that fails to name an actual mortgagee can successfully convey a property interest; and (3) whether county governments may be entitled to reimbursement of recording fees avoided through the use of false statements associated with the MERS system. This Article concludes with a discussion of steps needed to rebuild trustworthy real property ownership records.
MERS is entering into the eye of the storm..
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