Congresswoman Marcy Kaptur Aims to Hold MERS Mortgage Note Holding Company Responsible

Posted on February 8, 2011

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” U.S. Representative Marcy Kaptur has proposed legislation to curb the role of Merscorp, the Reston, Virginia, company formed in the mid-1990s by the industry to track servicing rights and beneficial ownership of loans. Many large servicers log the changes on the private database run by its Mortgage Electronic Registration Systems Inc. unit rather than filing mortgage assignments with county records offices. The system has allowed the industry to save at least $2 billion in filing fees.

Kaptur, a Democrat from Ohio, introduced a bill in November to prohibit Fannie Mae, Freddie Mac and Ginnie Mae from owning or guaranteeing any mortgage for which MERS is the mortgagee of record. The House didn’t act on the legislation, and Kaptur plans to push it again this year. ”

Congresswoman Kaptur is forcing mortgage companies to follow local law and file mortgage assignments with county governments. Many, if not all, of the mortgage companies have lost track of the actual mortgage note, which is what they are required to have to foreclose on a property. This problem has led to mortgage companies forging signatures on court documents and engaging in other frauds against the court.

See full article here.

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