What Is MERS and What Role Does It Have in the Foreclosure Mess?

10-26-2010 • Ritholtz.com

You’ve heard the name Mortgage Electronic Registration Systems or “MERS” mentioned in relation to the foreclosure problems in the residential real estate market. But what is MERS? It is the company created and owned by all of the big banks to process title to property in the U.S. Approximately 60% of the nation’s residential mortgages are recorded in the name of MERS. MERS is a shell corporation with no employees, but thousands of officers. As the treasurer and secretary of MERS admitted in a deposition: Q Does MERS have any salaried employees? A No. Q Does MERS have any employees? A Did they ever have any? I couldn’t hear you. Q Does MERS have any employees currently? A No. Q In the last five years has MERS had any employees? A No. Q To whom do the officers of MERS report? A The Board of Directors. *** A That’s correct. Q And in what capacity would they report to you? A As a corporate officer. I’m the secretary. Q As a corporate officer of what? Of MERS. Q So you are the secretary of MERS, but are not an employee of MERS? A That’s correct. ***