Backpeddling MERS Now Forbids Members From Foreclosing In Its Name, Requires Servicers To Obtain, Record Assignments Before Initiating Actions

Reuters reports:

• MERS, the electronic mortgage registry that faces multiple investigations for its role in thousands of problematic foreclosure cases, changed its rules to lower its profile in court-supervised foreclosures. MERS, a unit of Merscorp Inc. of Reston, Virginia, owns the computerized registry, Mortgage Electronic Registration Systems.

***

• In rule changes announced to MERS members on July 21, the company forbade members to file any more foreclosure actions in MERS's name. It also required mortgage servicers to obtain mortgage assignments and record them with county clerks before beginning foreclosures.

For more, see Facing criticism, MERS cuts role in foreclosures.