Quote: On the original Note, my loan #123123 was listed on the upper right and lower right of every page. The MERS #123123 was listed on the upper left corner of every page.
However, in the copy of the note the servicer provided as proof of their ownership; both the loan number and mers number were redacted. Anyone know why?
There are both honest and dishonest reasons for such redactions.
In many states, statutes or court rules require the redaction of certain identifying information from court filings, since these are public records.
For example, how would you feel about the lender putting into the court records copies of your loan application, which contains not only your DOB, SSN, but also your other deposit and loan account numbers, etc.?
So a number of servicers and law firms have a policy of redacting certain types of information for legitimate reasons.
But there is also a dishonest reason. The loan number or MIN may also be a means of identifying a particular loan within the SEC securitization documents. Since the servicers sometimes dishonestly represent the identity of the loan owner or holder, they also want to deny borrowers any traction in finding evidence that can be used to obstruct, frustrate or slow a foreclosure. Basically, they want to keep the borrower in the dark.
The MERS MIN will appear on the recorded copy of the mortgage or deed of trust. Sometimes originators showed a loan identifier number on both the note and mortgage security instrument. Sometimes it appeared only on the note.
Astute borrowers make sure to get a copy of every document that they sign at closing and these will have these identifying numbers. Ignorant borrower fail to get copies and fraudulent originators routinely avoid giving these documents to the borrowers at closing to make it difficult for the borrower to prove fraud.