To many in the industry, federal regulators just gave Mortgage Electronic Registration Systems (MERS) a big stamp of approval.

In an April 13 consent order, regulators never questioned the underlying business model of Merscorp, whose private loan registry has become a lightning rod for foreclosure litigation. The Office of the Comptroller of the Currency did not even attempt to address the controversy being litigated in hundreds of courts across the country: Does MERS have the legal right to foreclose on a borrower?

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.