Mortgage Electronic Registration Systems (MERS) is claimed to be a privately held company that controls a confidential electronic registry designed to track mortgages and the changes in servicing rights and ownership of mortgage loans in the United States. Shareholders and owners of MERS include AIG, Fannie Mae, Freddie Mac, WAMU, CitiMortgage, Countrywide, GMAC, Guaranty Bank, and Merrill Lynch. It is argued that the U.S. government may currently control MERS via its control and ownership of many of these MERS’ shareholders.
MERS serves as the mortgagee of record for lenders, investors and their loan servicers in the county land records. MERS claims its process eliminates the need to file assignments in the county land records which lowers costs for lenders and consumers by reducing county recording revenues from real estate transfers and provides a central source of information and tracking for mortgage loans. MERS helped make mortgage-backed securities possible and helped create the United States housing bubble.
MERS is just an electronic fiction which claims to possess loans papers. Judges are increasingly dismissing them as fake and not a real party in interest.
Here is the link to this interesting phenomenon.