Copyrighted Image? DMCA | This is a slowly unfolding story the last two years: Traditionally, when a bank issues a mortgage, they hold title to your home as security until the mortgage is paid off. Beginning in the 1990s, most banks began to package mortgages together into bundles, then slice the bundles up into "tranches" and sell bonds based on the revenues of each tranche. Hundreds of bond owners own a piece of your mortgage - but who holds the title? The entity set up to hold the title is called MERS. MERS owns nominal title to 65 million American homes. But the procedure for transferring title ("robo-signing") was non-standard and of questionable validity. Now the Supreme Court for the state of Washington says the titles were not legally conveyed. MERS has no standing to evict homeowners if they are not making mortgage payments. It's an unresolved legal rat's nest. |