CONTACTS:
Janis L. Smith
Phone: 703-738-0230
Email: janiss@mersinc.org
Karmela Lejarde
Phone: 703-761-1274
Email: karmelal@mersinc.org
Statement by Janis Smith, MERSCORP’s Vice President for Corporate Communications
on the complaint filed by the State of Delaware
October 27, 2011
Our business model is straightforward and transparent. MERSCORP, Inc., and its subsidiary, Mortgage Electronic Registration Systems, Inc. (MERS) comply with laws as well as county and state recording statutes and mortgage regulations.
There is no merit to the Delaware attorney general’s allegation of deceptive practices, and we refute claims that use of the MERS® System caused confusion to borrowers or any other participants in the mortgage finance system.
Homeowners have free access to their loan servicer information on the MERS® System at all times, and MERS’ website also provides them with access to mortgage counseling and foreclosure prevention organizations. The borrower’s customer relationship is with the servicer, and not with MERS, and federal laws require the servicer to disclose all changes in ownership to borrowers.
MERSCORP has cooperated in good faith with the Delaware attorney general’s office and complied with their requests for information under a subpoena issued earlier this year. The lawsuit they filed was unexpected, and we disagree with the allegations made in their complaint. The MERS® Systems role in the mortgage industry has reduced chain of title issues, provided efficiencies through e-commerce, and resulted in lower mortgage borrowing costs to consumers.
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