Tag: legislature

Appeals Court Ruling Against MERS in Michigan Reverses District Court Non-Judicial Proceedings

Appeals Court Ruling Against MERS in Michigan Reverses District Court Non-Judicial Proceedings

By Daniel Edstrom
DTC Systems, Inc.

Selected excerpts:

These consolidated cases each involve a foreclosure instituted by Mortgage Electronic Registration System (MERS), the mortgagee in both cases. The sole question presented is whether MERS is an entity that qualifies under MCL 600.3204(1)(d) to foreclose by advertisement on the subject properties, or if it must instead seek to foreclose by judicial process. We hold that MERS does not meet the requirements of MCL 600.3204(1)(d) and, therefore, may not foreclose by advertisement. 

MERS would purportedly track the mortgage sales internally so as to know for which entity it was holding the mortgage at any given time and, if foreclosure was necessary, after foreclosing on the property, would quit claim the property to whatever lender owned the loan at the time of foreclosure.

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MERS Getting Crushed in Oregon – Three Rulings Against MERS in February Alone

MERS Getting Crushed in Oregon – Three Rulings Against MERS in February Alone

By Daniel Edstrom
DTC Systems, Inc.

Brent Hunsberger from the Oregonian has reported that hundreds of Oregon foreclosure sales have been stopped after judges’ rulings (http://www.oregonlive.com/business/index.ssf/2011/03/rulings_put_brakes_on_hundreds.html).   Two rulings are from October 2010, but three rulings were from February 2011.  Apparently Oregon has a law requiring all intervening assignments be recorded.  This appears to be a problem since MERS was specifically designed to hide the beneficial ownership of the loan and to avoid the payment of taxes on the transfer or assignment of the loan.  The interesting thing is this article from the Oregonian says that the legislature needs to “fix” this issue.  But the current laws appear to be sufficient.  It wasn’t the homeowners across the United States who decided to defraud the homeowners, county and state governments, it was the banks that were looking to defraud homeowners, county and state governments.

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