MERSCorp Inc., parent company of the Mortgage Electronic Registration Systems, named former CitiMortgage chairman and CEO Bill Beckmann its permanent replacement for retired president and CEO R.K. Arnold.
After leaving CitiMortgage in June 2008, Beckmann ran an independent consulting firm called Beckmann Insights.
Former Radian Guaranty Chairman Paul Bognanno has served as the interim replacement for Arnold, who retired in January.
"We're delighted to have Bill at the helm at an important time in MERSCorp's history," Chairman Kurt Pfotenhauer said in a statement. "His knowledge of the mortgage industry and exceptional management experience will be instrumental as we continue to implement initiatives to strengthen and improve the MERS brand."
The MERS System is an electronic platform that tracks changes in promissory note ownership, allowing mortgage investors to bypass the county-level land recordation process. While possession of the note may changes hands, MERS remains listed as the holder of the mortgage document that serves as proof of the borrower's home as collateral for the note in the public record.
MERS proponents claim this process saves time and alleviates the workload for county land recording offices burdened by a paper-intensive process. Critics claim the process lets mortgage investors avoid paying fees when promissory notes and mortgages change hands. The company has faced numerous legal challenges to its legitimacy as mortgagee on public land records.
"I'm excited to be joining the MERSCORP team and looking forward to leading an organization that provides a unique and vital service to the nation's housing finance system," Beckmann said in the press statement.
While at CitiMortgage, Beckmann oversaw an operation with 4 million mortgage customers and more than $800 billion in serviced assets. Prior to joining CitiMortgage, he was chairman and CEO of The Student Loan Corp. and also worked in IBM's Corporate Strategy and Internet Marketing divisions.
