MERS is an acronym for Mortgage Electronic Registration Systems, a private company that registers mortgages electronically and tracks changes in ownership. I had never heard of them, and Walls Street was hoping you would never hear about them unless they showed up in court one day to foreclose on your mortgage. You see, MERS is one of the many nasty little games Wall Street has been using to leverage your simple mortgage into thousands of collateralized debt obligations and other "products" which have poisoned our financial system.
The only problem is that some judges (like the Kansas Supreme Court) recently have declared that the MERS vitalization of mortgages may not be legally binding and that the company does not have the right to foreclose on properties. And the banks that wrote the original mortgages may not have the right to foreclose either, because they have already been paid in full by MERS and the securities companies MERS is protecting from scrutiny. Go to :http://www.globalresearch.ca/index.php?context=va&aid=15324 for some better details.
These Walls Street guys may have gotten so caught up in moving the little cups around that even they forgot to keep track of where the pea was.
My prediction: MERS will be something everybody has heard of in six months.
Why? Because MERS holds 60 million mortgages. And the banks will have to buy back their promissory notes at full value before they can foreclose on those loans. And the people holding the security products created from those mortgages will want to get paid before they release them. But no bank is going to pay hundreds or thousands of percent over the actual value of the mortgage, just to be able to foreclose in court.
I smell lawsuits...