Reston, Virginia based Mortgage Electronic Registration Systems, otherwise known as MERS, is now being investigated by Federal bank regulators Comptroller of Currency John Walsh recently announced. The probe will "assess MERS' corporate governance, control systems and accuracy and timeliness of information" that the company uses.
MERS was designed to enable lender package and sell mortgages without recording those transactions in county property offices, which results in massive monetary savings for lenders. In recent months MERS has come under fire for its role in allowing banks to cut corners when processing foreclosure cases, sometimes even prosecuting foreclosures in its own name. Many of MERS critics say it doesn't have the standing to act on behalf of the real mortgage owners in foreclosure cases.
This is potentially another blow to the already beleaguered company. MERS is currently facing a lawsuit from the state of California for unpaid land recording fees, detailed by a Jacksonville Foreclosure Lawyer here. If you have a Florida foreclosure lawsuit where MERS is involved, contact a Florida Foreclosure Lawyer today to explore what defenses may be available to you.
