Internet Software and Services
Company Overview of MERSCORP, Inc.
MERSCORP, Inc. provides a system to streamline the mortgage process by using electronic commerce. It offers MERS System that acts as nominee in the county land records for the lender and servicer, and provides a way to originate, sell, and track mortgage ownerships and servicing. The company’s MERS system provides MERS as original mortgagee (MOM), a solution that provides standard security instruments for lenders to close loans; MERS By Assignment (non-MOM loans), which enables lenders to assign loans into MERS if the loan has already been closed in the lender's name; and MERS iRegistration that provides companies with the fraud and loan tracking benefits of a MERS System registration by reg...
1818 Library Street
Reston, VA 20190
Founded in 1995
Key Executives for MERSCORP, Inc.
Founder and Executive Vice President
Senior Vice President and Chief Risk officer
Compensation as of Fiscal Year 2013.
MERSCORP, Inc. Key Developments
Beaufort County Files Lawsuit against Mortgage Electronic Registration Systems
Jun 12 13
Beaufort County has filed a lawsuit against Mortgage Electronic Registration Systems. The company also does not consistently alert the county Register of Deeds Office when loans on properties are bought, sold or bundled into a tradable security. Instead, the record indicates only that MERS owns the note. These activities have caused massive confusion and has made many of the Beaufort County Register of Deeds recording systems inaccurate and unreliable. The case was filed in the Beaufort County Court of Common Pleas by the Bluffton firm of Vaux & Marscher, which is representing the county. Vaux & Marscher will be paid only if MERS or other defendants are required to pay damages.
U.S. District Court for the Western District of Missouri Dismisses County's Lawsuit Against MERSCORP
Feb 15 13
The U.S. District Court for the Western District of Missouri dismissed a county's lawsuit alleging several defendants' failure to record deeds of trust assignments and pay applicable recording fees. The county could not recover because no legal duty to record assignments existed under Missouri law. MERSCORP Inc. owns and operates a national registry that tracks ownership interests and servicing rights associated with residential mortgage loans. Assignees of mortgages record assignments with the appropriate county recorder. After MERSCORP developed Mortgage Electronic Registration Systems Inc. (MERS) MERSCORP was able to track ownership and servicing rights for loans "in-house." Jackson County, Mo., sued MERSCORP, MERS and various mortgage companies alleging a conspiracy to use MERS to avoid recording mortgage assignments and paying recording fees. As a result of the alleged scheme, lenders, loan servicers and other entities saved more than $8 billion that otherwise would have been paid to counties. The defendants argued that the county's causes of action failed because there was no obligation under Missouri law to record deed of trust assignments. The district court found that the unjust enrichment claim warranted dismissal.
Jack Conway Files lawsuit Against MERSCORP Holdings Inc. and MERSCORP, Inc
Jan 23 13
Attorney General Jack Conway claimed in a lawsuit filed on January 23, 2013, in Franklin Circuit Court. Virginia company created by the mortgage industry violated Kentucky's Consumer Protection Act by failing to disclose when mortgages were sold or transferred from one bank to another. The 36-page suit alleges that MERSCORP Holdings Inc. and its wholly owned subsidiary, MERSCORP, Inc., both in Reston, Va., were required to record mortgage assignments in the appropriate county clerk's office, which collects a $12 fee for each mortgage recorded. Many banks and mortgage lenders sell outstanding loans to free up money for new loans. They use a mortgage assignment to legally grant the loan obligation to the new mortgage holder.
MERS directly violated that law by creating this system that provides no public record of sales or transactions and deliberately circumvents paying recording fees to states. The process makes it difficult for consumers to access data to find out who owns their loans, and the Commonwealth is ripped off when it comes to recording fees. Conway declined to put a number on how many alleged violations might have occurred in Kentucky with MERS, but Conway said the suit calls for fines of as much as $2,000 for each violation.
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