MERS Reduces Its Role In Mortgages

MERS has come under a lot of criticism the past two years as banks have foreclosed on tens of thousands of homes when the exact ownership of those homes is not clear.

Who owns a mortgage after it has been sold and resold and tranched and securitized?

MERS is this largely unknown nationwide electronic mortgage registry.

Almost everybody reacts to blows by making themselves smaller. The head and neck retreat into the body. The shoulders hunch. The bank shortens and narrows. That’s how people react to frightening stimuli – they go into fright or flight.

MERS is reacting the same way. They’re making themselves smaller. Less visible. Pulling back. They don’t want the publicity. They don’t want the aggravation of being so big, so dominant, so important.

We’re just gonna make ourselves small and hope that the trouble blows over.

I get it.

Reuters reports: MERS, the electronic mortgage registry that faces multiple investigations for its role in thousands of problematic foreclosure cases, changed its rules to lower its profile in court-supervised foreclosures.

MERS, a unit of Merscorp Inc. of Reston, Virginia, owns the computerized registry, Mortgage Electronic Registration Systems. Mortgage loan giants Fannie Mae and Freddie Mac and several of the largest U.S. banks established MERS in 1995 to circumvent the costly and cumbersome process of transferring ownership of mortgages and recording the changes with county clerks.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (, he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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