Effective April 1, servicers managing Freddie Mac loans will no longer be allowed to foreclose on properties in the name of Mortgage Electronic Registration Systems (MERS).
Freddi Mac’s announcement states
We have updated the Guide to eliminate the option for the foreclosure counsel or trustee to conduct a
foreclosure in the name of MERS. Effective for Mortgages registered with MERS that are referred to
foreclosure on or after April 1, 2011, Servicers must prepare an assignment of the Security Instrument
from MERS to the Servicer and instruct the foreclosure counsel or trustee to foreclose in the Servicer’s
name and take title in Freddie Mac’s name.
As required in Section 66.17, Foreclosing in the Servicer’s Name, Servicers must record the prepared
assignment where required by State law. State mandated recording fees are not reimbursable by Freddie
Mac, are not considered part of the Freddie Mac allowable attorney fees and must not be billed to the
Borrower.
Servicers should refer to updated Section 66.17 and Section 66.54, Vesting the Title and Avoiding
Transfer Taxes, for additional information.
[ipaper docId=51478894 access_key=key-uycf5vbb5ste8n2go4r height=600 width=600 /]
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So, if I read this correctly, the Servicer must prepare an assignment of the benficial interest from MERS to the Servicer and then foreclose in the Servicer’s name and somehow take title in Freddie Mac’s name????
Do you think their attorneys read this before they make these rules?
Does the Servicer pay any value for the assignment of the beneficial interest from MERS?
Does Freddie Mac pay any value for the assignment of the beneficial interest when the “take title” after the foreclosure???
What business does a Servicer have becoming a beneficiary?
This is getting really bizarrrrrrr