The Department of Treasury Comptroller of Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision and the Federal Housing Finance Agency have entered into a consent order with MERS, wherein MERS is being forced to correct the errors that have plagued foreclosure processes nationwide. In a just released 9 page document, the federal regulators found that MERS has committed serious errors and have experience multiple failures of its operations.
The consent order states that MERS employed unsafe and unsound business practices and exposed MERS members to "unacceptable operational, compliance, legal and reputational risks." Also included in the order are two findings related to MERS tracking and registering mortgage loans along with initiating foreclosures. Regulators found: 1) MERS failed to exercise appropriate oversight, management supervision and corporate governance, and have failed to devote adequate financial, staffing, training and legal resources to ensure proper administration and delivery of services to Examined Members.
2) MERS sailed to establish and maintain adequate internal controls, policies, and procedures, compliance risk management, and internal audit and reporting requirements with respect to the administration and delivery of services to Examined Members.
The Consent Order also lays out detailed requirements for MERS to clean-up its operational practices to prevent any future break-downs going forward. This is the first major finding that MERS foreclosure processes were flawed. If you are facing a Florida Foreclosure Lawsuit and you had a MERS loan, contact Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to see what foreclosure defenses may be available to you.
