Securitization of mortgage instruments is at the root of this documentation issue.

Quote:

The Real Foreclosure Crisis: Who Owns the Mortgages? [H]owever, with the creation of mortgage-backed securities Wall Street needed a way to avoid the pesky and costly recordation system so it came up with MERS -- the Mortgage Electronic Registration System. In general the MERS concept works like this: When a loan is originated and sold on Wall Street MERS would become the nominal owner. Loan ownership can then be transferred within MERS and without having to change the public record with every loan sale. ...

This will get solved in time. Might end up taking an Act of Congress or something but the problem will get resolved.