Mortgage Electronic Registration Systems, or MERS, the company created in an attempt to streamline property transfers across the Country has flourished since its inception in the early 90's, now finds itself under investigation by multiple States' Attorneys General. Among the most recent to look into MERS business practices are AG's in Delaware and Massachusetts. MERS has promised to cooperate in these investigations.
Many questions surround MERS and its business practices, including whether their foreclosures violated various foreclosure laws and whether they skirted on millions in fees due the government. Those practices and fees are now at the center of what could be a massive settlement, talks of which are being spearheaded by a 50-state coalition of Attorneys General. But many have expressed reservations about structuring a settlement that would release MERS from widespread liability.
Courts across the country are now looking into whether MERS has standing to foreclose. Laws from states across the country often require a foreclosing party to have some form of ownership of the loan. But MERS is essentially a mortgage tracking system, so proving this ownership seems unlikely. Still, MERS has gained support in some state courts and the Minnesota legislature even passed a law giving MERS the express right to foreclose on properties.
With Courts in limbo over MERS and other issues, foreclosure activity is slow for the time being. If you are facing a Florida foreclosure lawsuit and your loan included MERS as the mortgagee, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today to determine what potential foreclosure defense options may be available to you.
