Wednesday, October 27, 2010

Barclays Capital: MERS foreclosure issues may be spreading to commercial real estate

Possible foreclosure issues with loans processed through the Mortgage Electronic Recording System, or MERS, may be spreading to commercial real estate, but the effect on securitizations could be minimal, according to Barclays Capital analysts.


MERS allows lenders to track individual mortgages through an electronic tracking and holding system. Through that system, MERS holds legal title to a mortgage as the loan owner's agent and is sometimes granted the authority to enforce foreclosure.

Read on.

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