MERS Issues a Press Release
October 29th, 2010
MERS issued a response to the D.C. Attorney General's October 28, 2010 Statement of Enforcement.
MERS Response to D.C. Attorney General's Oct. 28, 2010 Statement of Enforcement
RESTON, Va., Oct. 28, 2010—In response to the Statement of Enforcement by the Attorney General for the District of Columbia, we agree that no homeowners should be subjected to deceptive practices during the foreclosure process. To ensure that homeowners readily have necessary information available to them, the MERS® System provides free access to any member of the general public to identify the current servicer and the note owner, if the note-owner has agreed to be disclosed, on their loan. Ninety-seven percent of MERS members agree to be disclosed. The MERS® System is the only comprehensive publicly available source of servicing and ownership of more than 64 million mortgage loans.
Mortgage Electronic Registration Systems, Inc. (MERS) holds the security interest in the deed of trust when MERS is identified as the beneficiary of record, as nominee for the lender and the lender’s successors and assigns. At closing, the lender and borrower name MERS as the beneficiary. The deed of trust is recorded with the Recorder of Deeds in compliance with the District of Columbia’s laws. MERS executes an assignment if the security interest is transferred from MERS to another entity and the assignment is recorded. For example, if the mortgage loan goes into default, and MERS is not the foreclosing entity, then MERS will execute an assignment showing the transfer of the security interest from MERS to the note-holder who will be foreclosing. The assignment is recorded as required under DC’s laws.
When MERS forecloses, MERS is already recorded in the land records as the security interest holder and requires under its membership rules to be in possession of the note in order to be the note-holder. Under either option, in compliance with DC’s laws, the notice of foreclosure sale represents to the homeowner the identity of the note-holder and that the note-holder’s security interest has been recorded.
Any MERS member who experiences a problem related to the recent Statement from the Attorney General for the District of Columbia is asked to immediately notify MERS. We will take steps to protect the lawful right to foreclose that the borrower contractually agreed to if the borrower defaults on their mortgage loan.
To view the online press release, please click here
About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 800 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.