The History of the Mortgage Electronic Registration System

From some internet searches I performed at the beginning of the controversy about the
Mortgage Electronic Registration System (MERS), I learned MERS was first proposed
by representatives of Fannie Mae at a Mortgage Bankers' Annual Convention in the
early 1990's. Some of the materials I saw on-line at that time said that mortgage
bankers showed interest in the concept Fannie Mae presented, so Fannie Mae and
Freddie Mac each contributed 2 million dollars (4 million total) to develop MERS.

The articles I saw on-line said Fannie and Freddie hired a large D.C. law firm
(Covington & Burling) to design and program MERS. And, these articles claimed that,
once the design and programming was complete Fannie and Freddie incorporated
MERSCorp. and hired Electronic Data Systems (EDS) as ‘facilities manager’ for
MERSCorp. Then Fannie and Freddie sold MERSCorp to a consortium of large
mortgage industry participants (mortgage banker securitizers, and mortgages
servicers).

It was also noted that as MERS was in development Fannie and Freddie modified some
of their mortgage qualification requirements and documentation standards to favor
MERS recordings. And, it was noted that without Fannie and Freddie’s interest and
support for MERS, MERS probably would not have been a ‘successful’ venture.

I thought this history of MERS was interesting. I’ve also found it interesting that, as the
controversy around MERS, and the controversy around the GSE's has brewed over the
last few years, the documentation for the history of the creation of MERS and
MERSCorp seems to have become more-and-more obscure.

Related information:

(1) 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

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

(3) 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

(4) 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

(5) 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

(6) 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