The real estate crisis happened for many reasons. MERS is one of the reasons many have been hiding. The Nolan Chart LLC home loan industry website reports that MERS, or Mortgage Electronic Registration System, will help Home loan Backed Security (MBS) industry transfer title. Fannie Mae, within the mid-1990s, created MERS. It was meant to be the middle person, not counting homebuyers, for the party involved in the mortgage. MERS transacts in an online (instead of brick-and-mortar) world. Thus, as mortgages are bundled, bought and sold at the speed of the MERS electronic network, there is surely convenience. Fannie Mae works with 50 percent of United States of America home loans but the United States of America treasury now owns it and now several wonder if MERS can legally be listed on home loans.
Suspicion over MERS and also the lack of a paper trail
The most significant question raised by the operation of MERS, particularly as it relates to potential mortgage fraud, is whether the business should be able to listen itself on electronic mortgage loan documents, as MERS has neither paid for any property nor represented the mortgage loan holder in any tangible lawful way. MERS has a very streamlined method of recordkeeping that home loan industry critics don’t seem to like. They think that past ways of legally processing documents are much better. MERS says, says Nolan Chart, it represents 60 million home loan cases. Critics question this number. The Supreme Court will likely get involved within the case that comes from MERS that has no free market competition however represents $10 trillion in home loans. The law satisfies whether MERS really has the right to foreclose on homes.
State intervention creates profit machine
MERS sits in a position of great privilege and benefits from public funding. When there is no way to regulate prices with free market competition, the public should be worried, says Nolan Chart. MERS has operated expediting the MBS because contract law loopholes exist. The U.S. real estate crisis happened mostly because of the industry. MERS might have to be reined in by the highest court in the land for the long-term benefit of homebuyers nationwide.
Nolan Chart
nolanchart.com/article8006.html
Wikipedia
en.wikipedia.org/wiki/Mortgage-backed_security
Freddie Mac commercial on mortgage fraud
youtube.com/watch?v=cS2HsaBA5No
No comments:
Post a Comment