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Tag Archives: MERS

HUD to Re-Foreclose on REO Homes in Michigan

HUD says foreclosures will have to be re-filed on some of its REO homes due to a Michigan court ruling. In April, the Michigan Court of Appeals issued a judgment stating that MERS does not meet the requirements under state statute to act as the foreclosing agent in non-judicial proceedings. HUD says most of the major title insurers in Michigan have ceased issuing title insurance for any repossessed properties involving MERS and a non-judicial foreclosure. The agency is directing mortgagees to re-foreclosure on any affected homes to cure the title defect.

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MERS Ruling in Michigan Leaves Title Companies Hesitant on REO Sales

The Michigan Court of Appeals has ruled that MERS does not meet the requirements under state statute to foreclose by advertisement because the company does not own any interest in the debt. The judgment does not apply to judicial foreclosures conducted by MERS, but observers warn the decision could void thousands of foreclosures in the state, including properties that have already been sold to new buyers. Local reports say title companies are canceling closings on some bank-owned homes in light of the ruling.

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MERS Taps Former CitiMortgage Chief as New President and CEO

MERSCORP, Inc., which operates the Mortgage Electronic Registration Systems (MERS) database, has appointed mortgage industry veteran Bill Beckmann as president and CEO. Beckmann was formerly chairman and CEO of CitiMortgage, Inc. He replaces R.K. Arnold, who resigned as MERS' president and CEO in January.

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Regulators Hand Down Enforcement Actions to Servicers, Vendors

The Office of the Comptroller of the Currency, Federal Reserve, and the Office of Thrift Supervision announced formal enforcement actions Wednesday against 14 mortgage servicers and two firms that provide foreclosure-related services to the industry - LPS and MERS. The consent orders are the result of regulators' investigations into robo-signing allegations and represent a settlement with the firms involved, at least in part. Both the OCC and Fed say they believe monetary sanctions in these cases are also warranted, and they plan to pursue such actions separately.

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Freddie Mac Bars Foreclosure Actions in the Name of MERS

Freddie Mac issued new policy guidelines to its servicers this week that prohibit foreclosures in the name of Mortgage Electronic Registration Systems Inc. (MERS). The electronic registry has come under fire lately, despite the fact that several state courts have recently upheld MERS' right to foreclose. It became a focus of last fall's robo-signing scandal when the MERS name appeared within defective affidavits. Fannie Mae told its servicers last spring they were no longer allowed to foreclose in MERS' name, and now Freddie Mac is following suit.

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Two More Rulings Confirm MERS’ Right to Foreclose

Two more rulings have defended the right of Mortgage Electronic Registration Systems (MERS) to foreclose on behalf of lenders. A case in New Hampshire and another in California affirmed the right of the company to act as a nominee on behalf of its members and foreclose on properties. In recent weeks, courts in Massachusetts and Kansas have also upheld the standing of MERS in foreclosure cases, although a New York court ruled MERS cannot act on behalf of lenders.

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Servicers Face New Rules, Penalties for Foreclosure Processing Mistakes

When evidence surfaced last fall of flawed foreclosure documentation and robo-signers within some of the nation's largest servicing shops, federal regulators launched an investigation into the foreclosure and servicing practices of 14 companies. Officials say they've uncovered ""critical deficiencies and shortcomings"" and will be enforcing sanctions and penalties against servicers and developing a set of national mortgage servicing standards for the industry.

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Conflicting Rulings Abound in MERS Judgments

Last week a New York judge ruled that the relationship between Mortgage Electronic Registration Systems (MERS) and its members is not one in which the company can act on behalf of the lenders in filing documents and proceeding with foreclosures. But judges that same week in Kansas and Massachusetts ruled the connection between the company and its members does allow for such actions. MERS issued a statement Wednesday saying it plans on making some changes so that members are not allowed to foreclose in MERS' name.

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Judge Rules MERS Cannot Act on Behalf of Banks

A New York judge has ruled that Mortgage Electronic Registration Systems, Inc. (MERS) does not have the right to transfer mortgages on behalf of its members, meaning it does not have the right to file foreclosures on behalf of lenders. The company has recently been under fire for the practice, but the company defended its actions saying that borrowers are required to sign documents stating that MERS can assume rights and responsibilities on behalf of creditors.

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MERS Announces Retirement of President and CEO R.K. Arnold

Merscorp Inc. (MERS) says its president and CEO, R.K. Arnold, who has been with the company since it was founded 15 years ago, has resigned. Paul Bognanno, former chairman of private mortgage insurer Radian Guaranty, will serve as interim president and CEO and lead the company's search for Arnold's permanent replacement. The executive shake-up is reportedly tied to the controversy surrounding the MERS System and whether or not it has the legal right to foreclose on properties on behalf of lenders and servicers.

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