Attorneys Target MERSCORP
It appears that attorneys have been targeting the MERSCORP as a target of opportunity for sometime as it attracts law suits based on guilt by association in the mortgage industry. The MERCORP continues to muzzle the legal barking dogs and send them on their way with their tails between their legs. It is amazing how MERS® continues to deflect darts, daggers, and arrows with its impenetrable armor. The recent MERS® victory against the New York Attorney General Schneiderman, should be lessons learned to future legal feeding frenzies against MERS®.
Silencing Lawsuits Against MERS®
MERS® was, historically, authorized by the note holder to bring foreclosure actions in its name, and the borrower agreed that MERS® may be the entity who may foreclose on the property in the event of a default. That being said, since July 2011 MERS® no longer acts as foreclosing entity.
In addition, MERSCORP does not receive fees or made any money on foreclosures initiated in MERS®’ name.
When MERS® is the mortgagee and is not the entity foreclosing, MERS® executes an assignment of a mortgage that transfers all of the interests in the mortgage to the entity that is foreclosing prior to the commencement of the foreclosure. The courts have held that MERS may assign its interests, as a mortgagee, and that such assignments are valid.
It is perfectly proper for MERS®, as the mortgagee, in order to fulfill certain acts required of the mortgagee, to appoint signing officers (or agents) to act on MERS®’ behalf. To act as a principal for its signing officers is not a deceptive trade practice.
There is no requirement under law that a principal must disclose whether its agents are employed by another entity. These agents authorized to act on behalf of MERS® are not employees of MERS®, but employees of the loan servicers or sub-servicing companies.
Signing officers are duly authorized to perform their responsibilities on behalf of MERS® who is the mortgagee – in compliance with applicable laws – and to sign their own names and to use the titles “vice president” and “assistant secretary” of MERS®.
MERS® does not hide ownership or undermine the integrity of land records. Any mortgage holder registered in the MERS® System an easily access information related to their mortgage on the MERS website or through a toll-free number.
Quality Mortgage Services performs MERS® Quality Assurance and prepares Quality Assurance for MER®S members. QMS is a mortgage review company that provides mortgage QC services for mortgage lenders and servicers.