FOR IMMEDIATE RELEASE
MERS Statement on Kentucky AG Complaint
Reston, Virginia, January 23, 2013—“There is no merit to the allegations leveled at MERS by Kentucky Attorney General Jack Conway in today's news conference. All MERS mortgages are registered in the local land records and all recording fees are properly paid. The MERS® System's role in the mortgage industry has reduced chain of title issues, provided efficiencies through e-commerce, and resulted in lower mortgage borrowing costs. Our business model is straightforward and transparent, and MERS role is clearly spelled out in the contract between borrower and lender. MERS® System data is not used by servicers to make loan modification, refinance or foreclosure decisions.
In Kentucky, all foreclosures are judicial foreclosures and as such are processed by the court system. MERS’ standing as mortgagee has been upheld in –In re Jessup, No. 09-5229 (Bankr. E.D. KY 2010). MERS and CitiMortgage’s Motion for Summary Judgment was granted and the court held that “the language in the Lender’s own instrument is sufficient to identify MERS as [the mortgagee].”
For descriptions of other cases and materials pertaining to MERS’ business model and role in U.S. housing, please visit www.mersinc.org.
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