America’s housing problems was caused by numerous factors. MERS is one of the reasons numerous are hiding. According to the Nolan Chart LLC mortgage industry blog, MERS (Mortgage Electronic Registration System) is an organization that enables the Mortgage Backed Security (MBS) industry to pass over rules concerning recording and transferring title when a property changes hands. Fannie Mae, within the mid-1990s, created MERS. It was meant to be the middle person, not counting homebuyers, for the party involved in the mortgage. All MERS transactions are online. Thus, as mortgages are bundled, bought and sold at the speed of the MERS electronic network, there is certainly convenience. half of the U.S. home loans are now owned by the United States treasury as it is now owns Fannie Mae. Now, several wonder why MERS, as a business that pays nothing on the home loan, is listed on the mortgage loan or if it is even legal. Resource for this article – MERS speeds up mortgage process, yet raises serious concerns by Personal Money Store.
No paper trail when numerous suspicious of 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 mortgage documents, as MERS has neither paid for any property nor represented the mortgage holder in any tangible legal way. In history, legal transaction would take place with old methods of mortgage processing documentation while now mortgage loan industry critics don’t like the streamlined method of recordkeeping that MERS does. Nolan Chart reports that critics are legally concerned about MERS’ claim to represent 60 million mortgage cases. That’s over $10 trillion worth of mortgages, and it appears likely that a business like MERS – with little or no free market competition – can be hearing from the Supreme Court before long. Foreclosing on homes is a right many wonder whether or not MERS should really have. The law will choose the final decision.
State intervention creates a great deal of profit
Public funding does a lot to keep MERS where it is. Thus, argues Nolan Chart, the public has a right to be skeptical when little to no free market competition exists to regulate prices. The contract law loopholes that have allowed MERS to operate thus far have expedited the MBS. The industry helped with the U.S. housing crisis. It created the majority of the problems. MERS might need to be reined in by the highest court in the land for the long-term benefit of homebuyers nationwide.
Discover more details on this subject
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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