They do say, it will be a problem for the banks to fix all the paperwork, in regards to foreclosing on people, but they say it can still be done. I believe there are many lawyers who disagree with that. The article also states the MERS lawyers can go to Judges and say "gosh we are missing a paper or two, but we are still the legal owners of the mortgage, so you should allow us to foreclose"! If that is an argument MERS lawyers plan on using in the future, Well... Judges have to rule by the Law! If you don't have the paperwork, you Can Not Foreclose!
Anyone can go to court and say "I have the right to take that person's home, nope don't have the paperwork to prove it, but you just have to trust me". A Judge would not rule for a normal person doing that, so they should NOT rule for some Wall Street Banks making that argument either!
Big investors are already rattling the cage on the issue of inadequate loan documentation. Last week, investors in mortgage securities issued by Countrywide, including the Federal Reserve Bank of New York, sent a letter to Bank of America (which took over Countrywide in 2008) demanding that the bank buy back billions of dollars worth of mortgages that were bundled into the securities. The investors contend that the bank did not sufficiently vet documents relating to loans in these pools.
Seems to me, things are going to get real interesting, with even more fireworks in the Mortgage Securities Side! It has only just begun!