The Mortgage Electronic Registration System (MERS) was created by the mortgage industry to fast-track the loan assignment process and helped bypass the burden of having to record every assignment. MERS was a perfect solution during the mortgage securitization frenzy.
When the housing bubble imploded and foreclosure activity went through the roof, MERS found itself the target of many lawsuits. Homeowner after homeowner challenged MERS’ legal authority to foreclose, as it was supposed to simply serve as an electronic registry, though it was often the named beneficiary under deeds of trust, though a "nominal" beneficiary. MERS made it through the foreclosure crisis pretty well, all things considered. Most legal challenges failed, as the courts likely couldn’t open up that kind of systemic Pandora’s box.
Well, according to Bloomberg, MERS’ chief legal officers, its national litigation coordinator, its corporate counsel, and its chief internal auditor have all now left the company. Hard to say why the exodus, but it may signal another closed chapter in the foreclosure crisis. Job done, time to move on.