Law schools are typically filled with some really bright people…when law school is done most of those bright people go off to work in law firms across the country…the brightest of the bright however, go and become law school professors.
Attached here is the work of one such brilliant mind, Christopher Peterson. Peterson concludes that MERS and the lenders who are using the system are on questionable legal grounds….some highlights:
Recording loans in the name MERS, rather than the actual parities in interest, has generally
not been explicitly authorized under the state title recording acts that trace their
lineage back to the earliest years of the American republic.
By adopting such a radical shift in how mortgages are recorded and foreclosed without legislative
change, the mortgage finance companies have rebuilt their industry on a legal foundation of sand.
MERS’ claim to own legal title to a mortgage loan’s security interest, divorced from the promissory note and entitlement to receive loan payments, is in direct tension with precedent that has been well settled for over a hundred years.