Legal Research

According to an article in the Salem News, written by Julie Manganis, an entity known as the Mortgage Electronic Registration Systems or MERS has bypassed thousands of mortgage records. When a property is sold, financed or refinanced, there must be a recording of the mortgage at the local level. But when these mortgages are sold or bundled and sold (as many as four times), MERS was bypassing the recording fees. Per the article "MERS would keep tabs on the mortgage, essentially creating a private registry and avoiding the fees."



Thus, a number of properties can not be properly tracked or searched in public records at the affected local jurisdictions. Also, home owners may not know who holds their mortgages.



Mr. John O'Brien, the Essex South Register of Deeds in Massachusetts estimates that his office has lost over $22 million in recording fees on over 148,000 recordings taken place since 1998. Mr. O'Brien has requested that the Massachusetts Attorney General take action against MERS. According to ther article "MERS has acknowledged that transfers or assignments of mortgages should have been transferred."