April 26, 2010 by Barry Scholl
MERS, an acronym for Mortgage Electronic Registration Systems, was created by the nation’s largest lenders in the early 1990s as a mechanism to reduce paperwork and recording fees. The private computer system allowed lenders to “in effect, put loans under MERS’ name, “ thus enabling lenders to “avoid having to file public documents each time a mortgage was bought and sold,” according to the Tribune article.
Peterson, the author of a forthcoming scholarly article on MERS in the University of Cincinnati Law Review, described it as “one of the buried, yet-to-emerge bombs in the whole mortgage crisis.” He also describes MERS as “a tax evasion broker,” that prevents counties from collecting millions in recording fees.
To read the Salt Lake Tribune article, click here.