MERS Reaches Agreement With Delaware AG Biden to Provide Increased Transparency – NMP Skip to main content

MERS Reaches Agreement With Delaware AG Biden to Provide Increased Transparency

Jul 13, 2012

Delaware Attorney General Beau Biden has announced that the national shadow mortgage registry known as Mortgage Electronic Registration System Inc. (MERS) has agreed to implement important reforms–including regular reports on the accuracy of its records–as part of a  settlement of a lawsuit Biden’s office filed against it last year. Biden filed the suit after hearing from  homeowners throughout Delaware who were unable to have meaningful conversations about saving  their home and who were unable to find out who owned their mortgage. “MERS’ inaccurate and unreliable records raised serious questions about who owns what in America. The steps MERS will now take will help answer those questions,” Biden said. Delaware is the first state to secure such concessions from MERSCORP Holdings Inc. and its subsidiary, MERS. Specifically, the terms Biden’s office secured help Delaware homeowners by:  ►Creating an easy way for homeowners to find out who owns their mortgage. MERS will maintain a database—accessible online and via a toll-free telephone number—that allows homeowners with mortgages held by MERS members to clearly see who owns the mortgage and who services the loan. ►Reducing the chances of fraudulent foreclosures. MERS members now must record assignments of mortgages with the county Recorder of Deeds Office before a foreclosure can proceed. In its investigation of MERS, Biden’s office found that MERS’ own records indicated numerous transfers in and out of MERS that were not reflected in the county records.  ►Increasing the transparency of the foreclosure process. MERS has agreed to not foreclose in its name for the next five years. MERS’ prior practice of allowing its members to use MERS’ name, instead of their own, to foreclose on Delaware homeowners was confusing and misleading. Biden’s office is currently drafting possible legislation that will make this reform permanent. ►Improving the accuracy of MERS’ records. MERS will audit its records for accuracy, reporting the results to Biden’s office, and will require its members to fix the errors revealed by the audit.  ►Increasing oversight and training. MERS is also required to annually examine documents signed by employees of its 25 largest members to check the identity and authority of the person who signed the documents. These signing officers will also be required to undergo training. “Every homeowner should be able to find out who owns their mortgage, not just the company hired to collect payments,” Biden said. “The MERS System functioned to obscure this important information.”
About the author
Published
Jul 13, 2012
MISMO Updates Business Glossary To Support AI, eMortgages

New definitions covering eHELOCs, remote online notarization, valuation modernization, and compliance initiatives aim to improve consistency

Underwriters Don’t Slow Down Loans. They Eliminate Uncertainty.

ndustry’s biggest bottleneck is not underwriting itself — it is the uncertainty that reaches underwriting too late in the process. When validation happens upstream, speed follows naturally.

MISMO Launches AI Governance Framework For Mortgage Lenders

New FRAME toolkit gives lenders, servicers, and technology providers a roadmap for managing AI risk while supporting innovation

CFPB Tells Lenders Immigration Status Can Factor Into ATR Analysis

CFPB frames immigration status as a potential ability-to-repay factor when future U.S.-based income is at risk

UAD 3.6 Deadline Nears; First American Earns Verification

First American's ACI Sky Workbench gains verification ahead of the Nov. 2 implementation date for the GSEs' updated appraisal reporting requirements

MISMO Introduces New Loan Boarding Standard

Wrapper Files support standardized data transfers between origination and servicing systems, with potential savings of $60 to $160 per loan