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 quickly. Many are pondering why MERS can legally be put on home loans as it never pays for property now the United States of America Treasury owns Fannie Mae meaning another half of U.S. home mortgages.
Suspicion over MERS and the lack of a paper trail
Since MERS did not pay for the property of represent the mortgage holder in any legal way, several wonder if MERS is beginning to be committing mortgage loan fraud while working with electronic home loan documents. MERS has a really streamlined method of recordkeeping that mortgage industry critics don’t seem to like. They think that past ways of legally processing documents are much better. MERS claim to represent up to 60 million mortgage cases, reports Nolan Chart, is legally questionable in the minds of critics. That’s over $10 trillion worth of mortgages, and it seems likely that a company like MERS – with little or no free market competition – can be listening to from the Supreme Court before long. The question of whether MERS should have the right to foreclose homes must be answered to the satisfaction of the law.
State intervention creates profit machine
MERS would not be anywhere with public funding. It benefits a lot from funding. When there is no way to regulate prices with free market competition, the public should be worried, says Nolan Chart. The contract law loopholes that have allowed MERS to operate thus far have expedited the MBS. The industry helped with the U.S. housing crisis. It created the majority of the problems. MERS may 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
