The Mortgage Electronic Registration System (MERS) is a private, electronic registry that tracks servicing rights and ownership of U.S. mortgage loans. MERS was created by the mortgage industry to streamline the mortgage process by substituting electronic filings in place of traditional land recordings, and act as nominee in the county land records for the lender and servicer. In other words, lenders and servicers give MERS the power to foreclose on their mortgages.
A number of litigants have questioned whether or not MERS can legally foreclose on borrowers' homes. Would such foreclosures violate the borrowers' rights?
Today, we're talking about an entirely different type of MERS challenge, questioning whether MERS infringes upon counties' rights.