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Regulators never questioned the underlying business model of Merscorp, whose private loan registry has become a lightning rod for foreclosure litigation.
April 15
Re: "Regulatory Order Really a Win for Embattled MERS and the Banks That Use It"
The MERS fiasco is far from over, and this pro-bank article in a pro-bank publication is extremely misleading.
MERS faces several huge legal challenges going forward. It splits the deed from the note, as the Arkansas, Kansas, and New York supreme courts have all noted.
MERS status as both 'beneficiary' and 'nominee' on deeds is being pulled apart in state courts across the nation.
There are the lawsuits on back fees owed to the recording offices.
There are huge holes in MERS corporate governance, where MERS did not properly adopt precursor entitities by laws.
As lawyers get up to speed on how to properly attack the many chinks in MERS' armor, the company litigation woes will go parabolic.
And they should. The 'private' note tracking system enables notes to be sold more than once. It is a fraud enabler on an epic scale and will be pulled apart in court. As it should be. Professor Peterson said it perfectly in his quote in the article.
Josh Pate
Branch Manager
Rockfish
Hailey, ID
