America’s housing crisis was caused by numerous factors. One example that numerous didn’t hear about was MERS. Transferring title when hands is done by the Home loan Backed Security (MBS) industry which, Nolan Chart LLC mortgage industry blogs reports, MERS (Home loan Electronic Registration System) controls. Fannie Mae, in the mid-1990s, created MERS. It was meant to be the middle person, not counting homebuyers, for the party involved in the mortgage. Any online transactions are done via MERS. It is convenient to be able to bundle, buy and sell mortgages with the MERS electronic network that provides speed. Fannie Mae works with 50 percent of United States home mortgages however the United States of America treasury now owns it and now several wonder if MERS can legally be listed on mortgages.
Many wondering about MERS
The most significant question raised by the operation of MERS, particularly as it relates to potential mortgage fraud, is whether the company should be able to listen itself on electronic home loan documents, as MERS has neither paid for any property nor represented the home loan holder in any tangible legal way. MERS has a really streamlined method of recordkeeping that mortgage industry critics don’t seem to like. They think that past ways of legally processing documents are much better. MERS says, says Nolan Chart, it represents 60 million mortgage cases. Critics question this number. If that number is true, $10 million in mortgages are being represented by MERS with no free market competition. This means the Supreme Court will probably get involved quite soon. Foreclosing on homes is a right many wonder whether or not MERS should really have. The law will choose the final decision.
Profit made with the state intervention
MERS wouldn’t 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. MERS has operated expediting the MBS because contract law loopholes exist. That industry is largely responsible for creating the U.S. housing crisis within the first place. Homebuyers may just support the highest court pulling in MERS to test them.
Further 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
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