I have a coworker who is on time with his mortgage until the servicer representing his mortgage on the MERS went out of business. His taxes and home insurance payments were always late. Finally a new bank own his mortgage note, but they could not find the title and numerous documents were messed up by the former servicer. If this bill went thru the servicer located in another state could gin up a copy of all the missing documents but they may not meet local state standards. This may come back to haunt the homeowner when he attempts to sell his property and the buyer does a title search and comes up with problems because his title is not original and clear. I don’t care how many times the note is sold off, the supporting property documents must be properly maintained and handed off. We have been doing this since the founding of our country. Go to most county court houses and you will find property records that can be traced back scores of decades and even a century or more. Now the bankers want to scramble this legal process so they want the ability to trade mortgage notes like stocks.
Which is why it is important for the borrower to keep his own documentation on significant financial transactions.
Trust but verify.