Skip to main content

UPDATE: JPMorgan Chase to Stop Using MERS

NationalMortgageProfessional.com
Oct 13, 2010

UPDATE: Mortgage Electronic Registration System (MERS) has released a statement in regards to JPMorgan Chase's earlier announcement that it was no longer using MERS: "JPMorgan Chase is a valued member of MERS. They currently have their correspondent loans registered on the MERS System. They do not, nor have they ever, registered their retail loans on the MERS System. As members of MERS and for loans registered on the MERS System, banks have the option of foreclosing in their own name, or MERS foreclosing for them. JPMC has chosen to foreclose in their own name, which is a common decision that is allowed under the structure of MERS." JPMorgan Chase has announced that it is no longer using the Mortgage Electronic Registration System (MERS) due to the fact that there are issues with the system properly being able to prove the ownership of mortgages. The company's exit from the MERS comes on the heels of its announcement  that is has increased its foreclosure freeze to 41 states and 115,000 loan files. The foreclosure suspension was due to the emergence of the "robo-signer" issue where tens of thousands of important foreclosure proceeding documents were singed off on without proper review and notarization. "With millions of Americans facing foreclosure, every element of the housing finance system is under tremendous strain," said R.K. Arnold, president and chief executive officer of MERS. "What we’re seeing now is that the foreclosure process itself was not designed to withstand the extraordinary volume of foreclosures that the mortgage industry and local governments must now handle. In the third quarter of 2010, Chase's net income was $4.42 billion, an increase of 23 percent from $3.59 billion in the third quarter of 2009. Earnings per share were $1.01, compared to $0.82 in the prior-year quarter. In the preceding second quarter, JPMorgan's net income reached $4.80 billion or $1.09 per share. “Our third-quarter net income of $4.4 billion was the result of the good underlying performance of our businesses," said JPMorgan Chase Chief Executive Officer Jamie Dimon. "The Investment Bank delivered solid earnings while maintaining its number one ranking in Global Investment Banking Fees. Retail Financial Services reported strong mortgage loan production. Card Services increased sales volume by seven percent compared with the prior year, and positive credit trends assisted in delivering improved results. Commercial Banking reported record revenue, while Asset Management had strong net inflows of $38 billion this quarter.” The company stated that it expects mortgage credit losses to remain at high levels for the next several quarters, and those losses could trend higher if economic conditions worsen. The company also said that it is on track to add 10,000-plus employees in the U.S. this year. For more information, visit www.mersinc.org or www.jpmorganchase.com.        
Published
Oct 13, 2010
MBA Offers Suggestions For Improving Refis, Forbearance

Responds to CFPB's request for information published in September.

Regulation and Compliance
Nov 30, 2022
2023 Conforming Loan Limit Tops $1M For High-Cost Areas

FHFA said the baseline conforming loan limit will increase 12% next year.

Regulation and Compliance
Nov 29, 2022
FHA Extends Waivers To Its HECM Loss-Mitigation Policies 

Extension applies to senior borrowers affected by COVID-19.

Regulation and Compliance
Nov 28, 2022
N.J. Real Estate Developer, Lawyer Admit To Mortgage Fraud

Plead guilty to defrauding Fannie Mae, insurers of over $3.5 million.

Regulation and Compliance
Nov 28, 2022
Strength In Numbers

Seeking advice from the CFPB

Regulation and Compliance
Nov 21, 2022
HUD OKs Private Flood Insurance Options For Homeowners 

FHA to allow private flood insurance policies on insured single-family mortgages in special flood hazard areas.

Regulation and Compliance
Nov 21, 2022