Rep. Marci Kaptur of Ohio introduced a short bill in Congress last month, H.R. 6460, “Transparency and Security Mortgage Registration Act of 2010,” which would restrict the operations of Mortgage Electronic Recording Systems [MERS] by removing Freddie Mac, Fannie Mae and Ginnie Mae as users. MERS is a privately held company that operates an electronic registry designed to track servicing rights and ownership of mortgage loans in the United States. Here is the bill. Click here.
In Congresswoman Kaptur’s bill, H.R. 6460 requires HUD and the Office of the Comptroller of the Currency to undertake a study of land recordation in the United States. This includes the impact of the lack of electronic records and the current use of electronic records at the local level.
In addition, the bill would bar the Government-Sponsored Enterprises or GSEs from guaranteeing or owning any mortgage that is either assigned to MERS or lists MERS as the mortgage of record. Government-Sponsored Enterprises are a group of financial corporations that were created by Congress to enhance the flow of credit to targeted borrowing sectors such as agriculture, education, and home finance and loan.
Moreover, Congresswoman Kaptur’s bill wants to look into whether a Federal system could be created that would not interfere with the local recordation system or state laws. From the bill:
(5) the feasibility of creating a Federal land title recordation system for property transfers that would maintain all previous records of the land-property without invalidating, interfering with, or preempting State real property law governing the transfer and perfection of land title.
"So why should any American citizen be kicked out of their homes in this cold weather? In Ohio it is going to be 10 or 20 below zero. Don't leave your home. Because you know what? When those companies say they have your mortgage, unless you have a lawyer that can put his or her finger on that mortgage, you don't have that mortgage, and you are going to find they can't find the paper up there on Wall Street. So I say to the American people, you be squatters in your own homes. Don't you leave. In Ohio and Michigan and Indiana and Illinois and all these other places our people are being treated like chattel, and this Congress is stymied."
Unfortunately, Congreswoman Kaptur’s bill has hit a snag and hits opposition by American Land Title Association (ALTA). From Source of Title:
While simple on its face, the bill has engendered immediate opposition and early disfavor from the American Land Title Association (ALTA) which argues that the bill would create a Federal land recordation system similar to the Torrens system.
Surprisingly, opponents of H.R. 6460 wish to drum up support to defeat the bill in its entirety by concentrating on a non-binding feasibility study buried within the thirteen page bill. The feasibility study likely has little chance of bearing fruit to create a Federal Torrens system.
H.R. 6460 will finally give title industries to improve their process while shedding light on the troublesome of electronic registry records held by MERS.
MERS has seen a lot of attention of lately in the media and has been scrutinized by the public, federal regulators, and lawmakers because of the number of robo-signing cases which entangles MERS. The robo-signers were walk- in hires of mortgage lenders, servicers and law firms with little to no experience or qualifications to sign thousands of mortgage paperwork in its name as either a bank official or representative of MERS without verification. There are amounts of lawsuits against MERS and an investigation into MERS. Congressman Kaptur is no stranger to understanding the current housing crisis and the fraud that has been discovered in the improper foreclosure seizures in this country. In fact, Congresswoman Kaptur warned Congress about foreclosure fraud two years ago. And this is before Congress gave $700 billion bailout money to rescue the banks in November 2008. Congresswoman Kaptur said this on the House floor two years ago:
"So why should any American citizen be kicked out of their homes in this cold weather? In Ohio it is going to be 10 or 20 below zero. Don't leave your home. Because you know what? When those companies say they have your mortgage, unless you have a lawyer that can put his or her finger on that mortgage, you don't have that mortgage, and you are going to find they can't find the paper up there on Wall Street. So I say to the American people, you be squatters in your own homes. Don't you leave. In Ohio and Michigan and Indiana and Illinois and all these other places our people are being treated like chattel, and this Congress is stymied."
Unfortunately, Congresswoman Kaptur’s bill has hit a snag and hits opposition by American Land Title Association (ALTA). From Source of Title:
While simple on its face, the bill has engendered immediate opposition and early disfavor from the American Land Title Association (ALTA) which argues that the bill would create a Federal land recordation system similar to the Torrens system.
Surprisingly, opponents of H.R. 6460 wish to drum up support to defeat the bill in its entirety by concentrating on a non-binding feasibility study buried within the thirteen page bill. The feasibility study likely has little chance of bearing fruit to create a Federal Torrens system.
H.R. 6460 will finally give title industries to improve their process while shedding light on the troublesome of electronic registry records held by MERS.
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