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The problem with MERS, as real estate lawyers were trying to tell the mortgage companies 20+ years ago, is that the geniuses that came up with it decided to ignore 500 years of Anglo-American common law, reinforced by statute in many states, that only the holder of the note can enforce the mortgage securing the note. MERS never holds the note, I don't think, I'm sure for some (ha ha) good reason.
I've heard that one or two states (Michigan is the one that keeps popping up) have altered the common law to make MERS-like nominees legally entitled to enforce a mortgage or deed of trust, but of course that doesn't affect all the mortgages that have already been made, as it constitutes interference sith a contract in violation of the contracts clause of the Constitution.
The only good reason for MERS to exist was to securitize the mortgages, sell them easy, cut them up into little bitty pieces and resell them. That did nothing to help the real estate market, didn't make mortgage rates any lower, certainly had no effect on home prices. It was just another casino game for the financial markets. The only bad thing is having the current and immediatly preceding administrations rushing in to bail out these morons with no control over the results. THAT'S where the real moral hazard lay-- not with people who lost their jobs, then their houses.
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