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1.3.2.4 Mortgage Electronic Registration System (MERS)

The Mortgage Electronic Registration System (MERS) is an electronic registry and clearinghouse established to track ownership and servicing rights in mortgages. For many home loans, MERS, as “nominee” for the lender, is the mortgage holder of record or the beneficiary on a deed of trust. MERS typically has no legal or beneficial interest in the promissory note. Nevertheless, as mortgage holder, MERS sometimes initiates foreclosure proceedings. Courts have disagreed over whether MERS has authority to foreclose on a mortgage in its own name.17

Footnotes

  • 17 {17} See § 7.12, infra (detailed discussion of MERS and defenses to foreclosures by MERS).