MERS Cannot Transfer or Foreclose on Mortgages

Posted on February 16, 2011

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Almost half the mortgages in the United States are managed through MERS, a holding company for mortgage notes created to make the bundling and sale of mortgages easier. transfer was done through the MERS electronic system, or so MERSCORP had hoped.

It seems that a New York bankruptcy judge has ruled the entire scheme invalid. Without the legislature passing a law making this type of transfer legal, MERSCORP does not have the authority to assign mortgages or to foreclose.

See article here.

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