Fannie Mae is now requiring that servicers bring foreclosure actions in their own name and not in the name of Mers, the mortgage industry's electronic system for tracking loan servicing rights that has become the target of numerous lawsuits, which is owned by Merscorp Inc.

With foreclosures on the rise, homeowners have challenged the system's authority to foreclose on behalf of mortgage lenders even though public records often list a Merscorp subsidiary as the holder of the mortgage and not the originating lender.

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