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MERS & Agency

Mortgage Electronic Registration Systems, Inc.s Agency Status

Tim A. Bryant
Revised May 2013

MERS Mortgage - as a separate corporation acting as nominee for lender, wielding powers to contract, power of sale & foreclosure, legal ownership of the collateral, etc. Mortgagee under this security instrument?....

...Well, maybe only until page 5....

We wouldnt want to be committing insurance fraud now, would we?

MERS does not act solely as nominee for the Lender, nor ever intends, to when originating the mortgage.

...and the Borrower may even be paying for mortgage transfers away from the mortgages Lender, the secured party....

...to an entity that may not even be a MERS member.

Mortgage - as nominee, holds legal title to the collateral pledged as security. (I love the borrower understands and agrees part. Judges still have no understanding of what MERS means.)

What is Legal Title?


Ownership of property that is cognizable or enforceable in a court of law, or one that is complete and perfect in terms of the apparent right of ownership and possession, but that, unlike equitable title, carries no beneficial interest in the property. West's Encyclopedia of American Law, edition 2. Copyright 2008

MERS System Terms & Conditions

MERS Electronic Tracking Agreements

Membership Terms - Nominee in an administrative capacity


only, for the beneficial owners from time to time. MERS only rights are in the Governing Documents, not the mortgage.

So how does MERS inoculate against the recording of assignments, when it acts solely as nominee for Lender? Once again, it never acts in that capacity.....

When a Warehouse Lender is involved, MERS acts as nominee for the Warehouse Lender, not the Lender stated in the mortgage, who has previously pledged all their, right, title, and interest away, and is owed nothing.

While concealing the identity of the warehouse lender as the true beneficiary from the public records, MERS then enables the warehouse lenders employees to wield all of the powers of MERS, as agents of MERS in the underlying loans.

....and sometimes even the state regulators can be MERS members.

MERS has no legal capacity to enter into a mortgage with a borrower. They cannot be a mortgagee of record without encumbering it, or creating a security interest. They also cannot transfer or assign the mortgages or the notes.

MERS is never given authority to contract with homeowners. There is no blanket agency for MERS to act for lenders. They can never act for the lenders successors and assigns, just the parties to the Electronic Tracking Agreements.

The Electronic Tracking Agreements are the contracts reflecting MERS authority. The MERS System Membership Rules are just what they say..Rules for the operation of the MERS electronic registry, owned by MERSCORP Holdings, Inc. It does not evidence any contractual authority given by the Lender.

Membership Rules - Nominee for member Servicer, an agent of the Lender, despite MERS not being a nominee of the non-member Lender.

Membership Rules - nominee (as limited agent). MERSCORP Holdings grants itself nominee status as well. Can now act absent the instructions of the beneficial owner.

Membership Rules - as principal, for the members employees, designated as agents of MERS, upon request from the member, as principal, to MERS, as nominee. (You can shake your head now !)

...and indemnifies itself against its own actions.

Grants itself powers it disclaims in its Terms & Conditions, through a corporate resolution.....

Evidence of certifying officer authority, per April 9, 1998 meeting of the Board of Directors...

...to which Hultman doesnt even know if the Board granted such authority....

Deposition of William Hultman in Ukpe v Bank of New York et al, NJ, April 7, 2010

Except that Mortgage Electronic Registration Systems, Inc. became MERSCORP, Inc in 1999....

...and an entirely new Mortgage Electronic Registration Systems, Inc. was incorporated.

...to which William Hultman was fully aware, because he incorporated the current Mortgage Electronic Registration Systems, Inc... in 1999.

The Corporate Resolution is an impossibility and a nullity, as the current corporation did not exist at the time the Board of Directors allegedly passed the resolution.

...and admitted, under oath, that the MERS in the corporate resolutions, no longer exists....

Deposition of William Hultman in Ukpe v Bank of New York et al, NJ, April 7, 2010

Membership Rules - nominees employee as agent for the member, upon request of the nominee, as principal, to the member, as agent, solely for the purpose of designating the nominee, as mortgagee of record, in the nominees mortgage contracts with borrowers. (On behalf of the member? OK to scratch your head again.)

Membership Rules - principal, as nominee for the nominee, in legal actions initiated by the principal, in the name of the nominee, to which it acts solely as nominee for the principal, to which it shall notify MERSCORP Holdings, who is neither a nominee or principal named in the mortgage. (Whew !!!)

Membership Rules - as principal to members, controlling the agency relationship.

What was the sole purpose of MERS contracting with the borrower in a mortgage?....

....Power of sale, to secure the Lenders interests. Now, lets backtrack again to their authority...

As of July 22, 2011, MERS expressly disclaimed the sole purpose, and consideration, of the mortgages. Every mortgage that remained in the name of MERS as mortgagee became functus officio, of no more effect.

While on the subject of MERS legal authority. They claim its rights under the mortgage transaction is derived from its agreements. Lets look at the terms under the membership agreement and electronic tracking agreements...

MERS mortgage governing law for all rights and obligations contained in the security instrument.