MERS Goes Ape Shit Over Schneiderman Lawsuit
Below is a press release issued by MERS. It is in response to the lawsuit filed by New York Attorney General Eric Schneiderman against MERS. You have to take the MERS press release with a grain of salt because their press releases tend to be as accurate and unbiased as Leni Riefenstahl’s pro-Nazi “documentary”, Triumph of the Will from 1934.
Setting the Record Straight
MERS® takes its role as a mortgagee very seriously. All of the activities of MERSCORP are in compliance with state and federal laws. We are confident that as people will see that MERS® adds great value to our nation’s system of housing finance.
AG Schneiderman Claim #1:
Defendants have improperly brought New York foreclosure proceedings in MERS’ Name
The mortgage loan determines who can bring a foreclosure action. The holder of the note or an authorized agent by the holder of the note can bring a foreclosure action. MERS® is also authorized by the note holder to bring foreclosure actions in its name. The borrower also agreed MERS® may be the entity who may foreclose on the property in the event of a default. That being said, since July 2011 MERS® no longer acts as a foreclosing entity. In addition, MERSCORP has also never received a fee or made any money on foreclosures initiated in MERS’ name.
AG Schneiderman Claim #2:
MERS Certifying Officers, including defendant servicers’ employees and agents, have submitted false, deceptive and often legally invalid documents in New York foreclosure proceedings
MERS executes an assignment of a mortgage that transfers all of the interests in the mortgage to the entity that is foreclosing. This is done prior to the commencement of the foreclosure. The courts have held that MERS may assign its interests as a mortgagee.
AG Schneiderman Claim #3:
The use of MERS certifying officers by defendants has confused and deceived homeowners and the courts.
It is perfectly proper for MERS® as the mortgagee to appoint signing officers to act on MERS’ behalf. MERS also acting as a principal for its signing officers is not a deceptive trade practice under New York law. They are not employees of MERS®. Signers are employees of the loan servicers or sub-servicing companies. They are to sign their own names and to use the titles “vice president” and “assistant secretary” of MERS®.
AG Schneiderman Claim #4:
MERS and defendant servicers through their use of MERS have concealed important information from homeowners about their property and the role that MERS plays with respect to their mortgage.
MERS® does not hide ownership or undermine the integrity of land records. Any mortgage holder registered in the MERS® System can easily access information related to their mortgage on our website or through a toll-free number. Federal law provides that consumers are notified for changes in investors or servicing status. In addition, county land records were not intended to identify the servicer of a mortgage or the current note holder; they are intended to provide notice to purchasers of property that there is a lien on the property and when that lien was perfected.