UPDATE: JPMorgan Chase to Stop Using MERS Wed, 2010-10-13 12:33 — NationalMortgag...
UPDATE: Mortgage Electronic Registration System (MERS) has released a statement in regards to JPMorgan Chase's earlier announcement that it was no longer using MERS: "JPMorgan Chase is a valued member of MERS. They currently have their correspondent loans registered on the MERS System. They do not, nor have they ever, registered their retail loans on the MERS System. As members of MERS and for loans registered on the MERS System, banks have the option of foreclosing in their own name, or MERS foreclosing for them. JPMC has chosen to foreclose in their own name, which is a common decision that is allowed under the structure of MERS."
JPMorgan Chase has announced that it is no longer using the Mortgage Electronic Registration System (MERS) due to the fact that there are issues with the system properly being able to prove the ownership of mortgages. The company's exit from the MERS comes on the heels of its announcement that is has increased its foreclosure freeze to 41 states and 115,000 loan files. The foreclosure suspension was due to the emergence of the "robo-signer" issue where tens of thousands of important foreclosure proceeding documents were singed off on without proper review and notarization.
"With millions of Americans facing foreclosure, every element of the housing finance system is under tremendous strain," said R.K. Arnold, president and chief executive officer of MERS. "What we’re seeing now is that the foreclosure process itself was not designed to withstand the extraordinary volume of foreclosures that the mortgage industry and local governments must now handle.
In the third quarter of 2010, Chase's net income was $4.42 billion, an increase of 23 percent from $3.59 billion in the third quarter of 2009. Earnings per share were $1.01, compared to $0.82 in the prior-year quarter. In the preceding second quarter, JPMorgan's net income reached $4.80 billion or $1.09 per share.http://nationalmortgageprofessional.com/news21103/jpmorgan-chase-stop-using-mers