Trend: A Kansas Court ruling means foreclose on homes with securitized mortgages in Kansas just got a lot harder, and the ruling could spread to the rest of the nation.
MERS (Mortgage Electronic Registration Systems) is a key component of this issue. Below are excerpts from commentaries by Barry Ritholtz (The Big Picture) and Karl Denninger (The Market Ticker).
Here's the big question: How will this impact home builders, home sales, banks, and mortgage bondholders?
In Landmark National Bank v. Kesler, 2009 Kan. LEXIS 834, the Kansas Court held that a nominee company called MERS has no right or standing to bring an action for foreclosure. (Other than GlobalResearch.ca, I have yet to see any MSM coverage of the issue). The Court stated that MERS’ relationship is not that of a true party possessing all the rights given a buyer. Hence, the court ruled: