Fannie Mae (FNM: 1.02 -2.86%) servicers can no longer name MERS, the industry-wide loan tracking system administered by MERSCORP, as a plaintiff in nonjudicial foreclosure actions as of May 1, 2010.
The new rule, announced in a servicing guide distributed Tuesday (download here), applies to foreclosures referred on or after May 1 on mortgage loans owned or securitized by Fannie. It applies a previous restriction in judicial actions to nonjudicial actions, as well.
MERS is the mortgagee of record either when a mortgage names MERS as the original mortgagee as recorded in the applicable land records, or when a completed and recorded assignment names MERS as the mortgage assignee, Fannie said.
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So who legally has the right to foreclose on us now if MERS can’t? Anyone know?