http://www.washingtonpost.com/wp-dyn/content/article/2010/10/09/AR2010100904125.html
They were aware of the flaws, but they couldn't do anything about it, because they needed help with Fannie and Freddie.
So if they know about the flaws, which are created entirely due to MERS, what do they actually need help with regarding Freddie or Fannie?
MERS cannot foreclose on people and the service providers have not right to.
The MERS problem is not going to go away, just because the White House refuses to acknowledge it.
What the "People" want to know is, Is the White House going to force the Banks to eat all of those mortgages that Fannie and Freddie now can't trace a clean title to?
The way this article reads, government officials still have no idea that Fannie and Freddie are stuck permanently with all of those home loans, because the act of foreclosure does not belong to them and they have no legal recourse in furthering their ability to do it.
In recent days, amid reports that major lenders have used improper procedures and fraudulent paperwork to seize properties, some Obama administration officials have acknowledged they had been aware of flaws in how the mortgage industry pursues foreclosures.
But the officials said they could take only limited action to address the danger. In part, this was because they wanted lenders' help carrying out federal programs to modify mortgages that had fallen into default or were poised to do so.
New concerns about improper practices - such as those involving faked documents or "robo-signers" who signed tens of thousands of documents without reviewing them - have prompted the mortgage servicing arms of the country's largest banks to freeze millions of foreclosures. As momentum builds for a national moratorium, the administration has begun assessing the potential impact, examining the threat it could pose for the ailing housing market and the wider financial system.
There is no evidence so far that the specific abuses made public in the past few weeks were known to government officials. Nor is it clear whether they were aware that the process of the selling and reselling of mortgages among financial firms - which became extremely common and highly profitable during the housing boom - was raising legal questions about who actually owned the loans and had the right to foreclose if they went bad.
But government officials
