MERS Ruling. Thoughts?

[Dustin Johns]

What are thoughts on the impact of this New York Judge's ruling last week? MERS lacks right to act as an agent of the mortgage company. I'm surprised how little coverage this is getting.

"Merscorp Inc., operator of the electronic-registration system that contains about half of all U.S. home mortgages, has no right to transfer the mortgages under its membership rules, a judge said.

U.S. Bankruptcy Judge Robert E. Grossman in Central Islip, New York, in a decision he said he knew would have a “significant impact,†wrote that the membership rules of the company’s Mortgage Electronic Registration Systems, or MERS, don’t make it an agent of the banks that own the mortgages." from Bloomberg

[Steve Babiak]

Key excerpt from the story:

Originally posted by MERS story from Bloomberg:

Grossman said parties coming to him to seek to lift the automatic ban on legal claims in cases involving MERS will have to show they own both the mortgage and the note.

So this won't impact 100% of MERS foreclosures ...