MERS Exits Stage Left, TeIIs Members

Not To ForecIose In MERS' Name

After the MERS Valentine's Day Massacre, previously reported on Zero Hedge, where
Judge Robert Grossman found that MERS has no right to transfer mortgages, the
company appears to have proceeded with the logical next step: professional Hara-
kiri. Ìn an announcement sent out to all MERS Members, the company stated that
according to a proposed amendment to Membership Rule 8, it will require "members
not to foreclose in MERS' name." MERS is seeking comments in a 90-day period, but
since this is a directive driven from external judicial decision(s), it is unlikely that MERS
members' opinions will matter at all. Basically MERS may have just exited the US
mortgage scene, stage left, for good.
HighIights from the reIease:
MERS is providing the following guidance to all Members to strengthen business
practices, and minimize reputation, legal and compliance risk to MERS and
its Members. Ìn recent months legal challenges have arisen regarding alleged
inadequacies and improprieties in the foreclosure process including allegations
of insufficient or incorrect supporting documentation and challenges to the legal
capacity of parties' right to foreclose. MERS is committed to re-evaIuate and
strengthen its systems and procedures to protect against these types of IegaI
chaIIenges. Consistent with this approach we have enhanced the Corporate Resolution
Management System (CRMS) and instituted related policies and procedures designed
to strengthen MERS' business practices and limit compliance risks. To comply with
this guidance, MERS Members should implement the following practices, effective
immediately.

MERS is planning to shortly announce a proposed amendment to Membership Rule 8.
The proposed amendment wiII require Members to not forecIose in MERS' name.
Consistent with the Membership Rules there will be a 90-day comment period on the
proposed Rule. During this period we request that Members do not commence
forecIosures in MERS' name. Ìf a Member determines that it will commence a
foreclosure in MERS' name during this 90-day period, two weeks advance notice
must be given to MERS to permit verification of the appointment and current status of
the Certifying Officer proposed to participate in the foreclosure. No foreclosure may
be processed in MERS' name without first obtaining this verification. We encourage
Members to bring foreclosures only in the name of the holder of the note, in the name of
the trustee or the servicer of record acting on behalf of the trustee.
As to whether this will actually impact a housing business whose every component is in
regulatory and legal flux and limbo, and more specifically, the share prices of WFC and
BAC, please direct your queries to Liberty 44, c/o CentraI Market PIanning Bureau.

Q UHFHQW PRQWKV OHJDO FKDOOHQJHV KDYH DULVHQ UHJDUGLQJ DOOHJHG LQDGHTXDFLHV DQG LPSURSULHWLHV LQ WKH IRUHFORVXUH SURFHVV LQFOXGLQJ DOOHJDWLRQV RI LQVXIILFLHQW RU LQFRUUHFW VXSSRUWLQJ GRFXPHQWDWLRQ DQG FKDOOHQJHV WR WKH OHJDO FDSDFLW\ RI SDUWLHV¶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

DQG LQVWLWXWHG UHODWHG SROLFLHV DQG SURFHGXUHV GHVLJQHG WR VWUHQJWKHQ 0(56¶ EXVLQHVV SUDFWLFHV DQG OLPLW FRPSOLDQFH ULVNV 7R FRPSO\ ZLWK WKLV JXLGDQFH 0(56 0HPEHUV VKRXOG LPSOHPHQW WKH IROORZLQJ SUDFWLFHV HIIHFWLYH LPPHGLDWHO\ 0(56 LV SODQQLQJ WR VKRUWO\ DQQRXQFH D SURSRVHG DPHQGPHQW WR 0HPEHUVKLS 5XOH  7KH SURSRVHG DPHQGPHQW ZLOO UHTXLUH 0HPEHUV WR QRW IRUHFORVH LQ 0(56¶ QDPH &RQVLVWHQW ZLWK WKH 0HPEHUVKLS 5XOHV WKHUH ZLOO EH D GD\ FRPPHQW SHULRG RQ WKH SURSRVHG 5XOH 'XULQJ WKLV SHULRG ZH UHTXHVW WKDW 0HPEHUV GR QRW FRPPHQFH IRUHFORVXUHV LQ 0(56¶ QDPH .I D 0HPEHU GHWHUPLQHV WKDW LW ZLOO FRPPHQFH D IRUHFORVXUH LQ 0(56¶ QDPH GXULQJ WKLV GD\ SHULRG WZR ZHHNV DGYDQFH QRWLFH PXVW EH JLYHQ WR 0(56 WR SHUPLW YHULILFDWLRQ RI WKH DSSRLQWPHQW DQG FXUUHQW VWDWXV RI WKH &HUWLI\LQJ 2IILFHU SURSRVHG WR SDUWLFLSDWH LQ WKH IRUHFORVXUH 1R IRUHFORVXUH PD\ EH SURFHVVHG LQ 0(56¶ QDPH ZLWKRXW ILUVW REWDLQLQJ WKLV YHULILFDWLRQ :H HQFRXUDJH 0HPEHUV WR EULQJ IRUHFORVXUHV RQO\ LQ WKH QDPH RI WKH KROGHU RI WKH QRWH LQ WKH QDPH RI WKH WUXVWHH RU WKH VHUYLFHU RI UHFRUG DFWLQJ RQ EHKDOI RI WKH WUXVWHH $V WR ZKHWKHU WKLV ZLOO DFWXDOO\ LPSDFW D KRXVLQJ EXVLQHVV ZKRVH HYHU\ FRPSRQHQW LV LQ UHJXODWRU\ DQG OHJDO IOX[ DQG OLPER DQG PRUH VSHFLILFDOO\ WKH VKDUH SULFHV RI :)& DQG .

%$& SOHDVH GLUHFW \RXU TXHULHV WR /LEHUW\  FR &HQWUDO 0DUNHW 3ODQQLQJ %XUHDX .

Sign up to vote on this title
UsefulNot useful