More on the Mortgage Electronic Registration System (MERS)

About eight to ten years ago - when the MERS was receiving more attention from the press - I
recall reading at least one article which described the history of MERS. At that time I wrote a
brief history of MERS based on articles I'd read. [See the attached document]

The articles I read mentioned that the MERS concept was initially presented to the American
Bankers Association by Fannie Mae and Freddie Mac at an American Bankers Association
annual convention in1993. The article mentioned that Fannie and Freddie were pleased with the
apparent interest in, and audience acceptance of the concept of MERS registration. The articles
further stated that, based on the interest shown, Fannie and Freddie each contributed two
million dollars and engaged the D.C. law firm, Covington and Burling, to work on the legal
basis, opinion letters, and initial design of the system. The article mentioned that once the
system "went live" Fannie and Freddie incorporated it as MERSCorp, hired Electronic Data
Systems (EDS) to be the software and computer facilities manager, then sold MERSCorp to a
group of large banks. The article(s) also mentioned that at the same time MERSCorp "went live"
Fannie and Freddie announced to banks and mortgage originators new electronic filing and
mortgage purchase procedures / requirements, which favored MERSCorp registration.

Today, I attempted to find the articles which reported the rough time-line of the history of MERS.
After several searches, the best I could do was a Wikipedia.com entry which has a section that
goes like this:

MERSCORP Holdings, Inc.'s MERS System Mortgage Electronic Registration

Systems, Inc. began as a project in October 1993 when Fannie Mae, Freddie Mac,
and Ginnie Mae produced a White Paper (with assistance from law firm Covington &
Burling) about the need for an electronic mortgage registration system. The MERS
acronym was coined soon thereafter. The Mortgage Bankers Association got involved
and MERS was incorporated in October 1995. MERS awarded a contract to Electronic
Data Systems (EDS) to develop and service the technology systems, and MERS was
officially launched in April 1997.[12]

And, one of the footnotes on the Wikipedia entry displayed a page from article1 written by MERS
long time Chief Executive, R.K. Arnold. The page from that article (see page 2 of this document)
provides a timeline which substantiates the primary motivating forces behind the creation and
design of MERS were Fannie Mae and Freddie Mac.

Footnote:

1. Yes, There Life on MERS? (Page 44) by R.K. Arnold, at: https://heinonline.org/HOL/LandingPage?
handle=hein.journals/probpro11&div=39&id=&page=

More on MERS by Bill George - July 25, 2018 Page 1 of 3

Suggested further reading:
(1) MERS Registry Comes Under Fire in Foreclosure Crisis: Video, at:
https://youtu.be/E3hRWd6_TEI
(2) MERS Exposed II: General Counsel Tells Whoppers in Testimony Before Virginia House by Yves
Smith – pub. naked capitalism.com - January 23, 2011, at:
https://www.nakedcapitalism.com/2011/01/mers-exposed-ii-general-counsel-tells-whoppers-in-testimony-
before-virginia-house.html

(3) Oregon State Supreme Court Media Release of Bart G. Brandrup, et al., v. Recontrust
Company, N.A., et al., (USDC Case No. 311CV1390HZ, 311CV1399HZ, 311CV1533SI, 312CV0010HA)
(SC S060281), at: http://www.ojd.state.or.us/SCA/WebMediaRel.nsf/Files/2013-06-
06_Media_Release.pdf/$File/2013-06-06_Media_Release.pdf

(4) Is FM Watch a Crusader With an Agenda? By Louis Sichelman – RealtyTimes, pub. 7/5/1999 at:
http://realtytimes.com/rtpages/19990705_fmwatch.htm

More on MERS by Bill George - July 25, 2018 Page 2 of 3

(5) Two Faces: Demystifying the Mortgage Electronic Registration System's Land Title Theory by
Christopher L. Peterson University of Utah - S.J. Quinney College of Law, pub. SSRN, at: September 19,
2010, at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1684729

(6) Reston Based Company MERS in the Middle of Foreclosure Chaos By Brady Dennis & Ariana
Cha Washington Post -October 8, 2010. http://www.washingtonpost.com/wp-
dyn/content/article/2010/10/07/AR2010100702742.html

(7) The MERS Mess (a YouTube posted video-Clip of a brief exchange describing some MERS problems
take from U.S. Congress testimony) at: http://youtu.be/V4E3tYHtqfs

(8) MERS? It May Have Swallowed Your Loan An obscure company claims to hold title to roughly half
of the home mortgages in the nation - 60 million loans By Michael Powell and Gretchen Morgenson - New
York Times, March 6, 2011 at: http://www.nytimes.com/2011/03/06/business/06mers.html?emc=eta1&_r=0

More on MERS by Bill George - July 25, 2018 Page 3 of 3