By Thom Weidlich
(Corrects to show parties would come before the judge to lift the automatic ban in 20th paragraph.)
Merscorp Inc., operator of the electronic-registration system that contains about half of all U.S. home mortgages, has no right to transfer the mortgages under its membership rules, a judge said.
U.S. Bankruptcy Judge Robert E. Grossman in Central Islip, New York, in a decision he said he knew would have a “significant impact,” wrote that the membership rules of the company’s Mortgage Electronic Registration Systems, or MERS, don’t make it an agent of the banks that own the mortgages.
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Related reading:
Judge: MERS Invalid
The Big Picture (14 Feb 11)
