JPMorgan Chase & Company abandons the fraudulent Mortgage Electronic Registration Systems (MERS)

According to an article in today’s (10/14/10) New York Times:  “On the same day that all 50 state attorneys general announced that they would investigate foreclosure practices, JPMorgan Chase & Company became the first big lender to acknowledge that it had stopped using Mortgage Electronic Registration Systems, or MERS, for foreclosures.”

MERS has emerged as the epicenter of the forclosure fraud crisis, despite the financial and real estate industries’ clamor to keep it out of the conversation.   Most major mortgage banks and real estate interests are owners and members of MERS, either directly or through subsidiaries.  The public is not permitted access to MERS records, despite the fact that MERS has the only records in existence of most transfers of ownership of mortgages and promissory notes from one investor to another.

Without access to MERS records, it is impossible for home owners to verify which bank owns their mortgage and promissory note.   This can lead to disastrous results when a bank that does not own the mortgage and note fraudulently forecloses on a home, and later the real owner of the mortgage and note shows up and tries to foreclose on the same home.

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