The real estate situation happened for several reasons. One that has remained largely hidden from the public until now is MERS. Transferring title when hands is done by the Home loan Backed Security (MBS) industry which, Nolan Chart LLC home loan industry blogs reports, MERS (Mortgage Electronic Registration System) controls. Fannie Mae, in the mid-1990s, created MERS. It was meant to be the middle person, not counting homebuyers, for the party involved in the mortgage. All MERS transactions are online. Speed is the primary reason like the MERS electronic network that bundles, buys and sells mortgages easily. But since Fannie Mae – which handles well over half of all United States of America home loans – is now owned by the U.S. Treasury, various sources have raised the question of whether MERS has the legal right to be listed on home loans in the first place, considering the never pays for any property.
Numerous wondering about MERS
Since MERS did not pay for the property of represent the mortgage holder in any lawful way, many wonder if MERS is beginning to be committing mortgage fraud when working with electronic home loan documents. In history, legal transaction would take place with old methods of home loan processing documentation while now mortgage loan industry critics do not like the streamlined method of recordkeeping that MERS does. MERS claim to represent up to 60 million mortgage cases, reports Nolan Chart, is legally questionable in the minds of critics. The Supreme Court will likely get involved within the case that comes from MERS that has no free market competition but represents $10 trillion in home loans. The law satisfies whether MERS really has the right to foreclose on homes.
Profit machine from state intervention
Public funding does a lot to keep MERS where it is. Thus, argues Nolan Chart, the public has a right to be skeptical when little to no free market competition exists to regulate prices. The contract law loopholes that have allowed MERS to operate thus far have expedited the MBS. That industry is largely responsible for creating the U.S. housing crisis in the first place. Homebuyers may just support the highest court pulling in MERS to test them.
Additional reading
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
