We’ve been waiting for this ruling since we learned about the practices of MERS and it’s legality.

Mortgage Electronic Registration System (MERS) was developed by the Mortgage Industry to act as an electronic “pipeline” that transfers “paper work” from one financial institution to another to expedite the selling of mortgages on the financial market. Basically, it was created to eliminate the monumental amount of paperwork required when loans are bought and sold on the investment market.

Well…MERS started acting as a “pseudo” bank and began representing banks interests by proceeding with foreclosure activity…with the banks agreement.

That’s where this whole thing gets messy…MERS is not the institution that “owns” the note…so, as this Judge has ruled, is not able to act on the banks behalf.  In fact, what MERS is doing is “illegal” by foreclosing on homeowners and investors.

Here’s the glitch…and where true banking pandemonium is on the cusp…MERS has “foreclosed” on not thousands but millions of homeowners…mind you… ILLEGALLY.

Can you smell the blood in the water? It stinks!

What’s next?  If I was foreclosed upon by MERS, I would file a lawsuit against my lender and MERS to get my house back.  If my lender & MERS cannot produce the home…then I want damages paid to me for my “pain and suffering”.

Here’s the article thanks to D SNEWS.com:

A New York judge has ruled that Mortgage Electronic Registration Systems, Inc. (MERS) does not have the right to transfer mortgages on behalf of its members, meaning it does not have the right to file foreclosures on behalf of lenders.

The company has recently been under fire for the practice, but the company defended its actions saying that borrowers are required to sign documents stating that MERS can assume rights and responsibilities on behalf of creditors.

The company’s Web site says, “MERS was created by the mortgage banking industry to streamline the mortgage process by using electronic commerce to eliminate paper.”