MERS - which stands for "Mortgage Electronic Registration Systems" has worked hard for financial institutions saving them hundreds of millions of dollars by avoiding the time and expense of filing mortgage documents and paying recording fees each time a loan changes hands. This system has cut out the recorder of deeds in counties across the country from collecting "transfer taxes" each time a mortgagor sells the loan to another mortgagor.
Well - lawyers across the country have been challenging this and questioning whether the company has the legal right to foreclose on homes - based on the grounds that it doesn't actually own the mortgages. And this argument is gaining tractions with judges across the country.
The Reston, Virginia based company has flourished over the years - and their walls may come crashing down.
Read more about this at: http://www.washingtonpost.com/wp-dyn/content/article/2010/10/07/AR2010100702742.html
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