About half of all U.S. mortgages "whose loans have been securitized, sliced and diced are now held by (MERS)," according to a blog posted by securities analyst Barry Ritholtz. The case started in bankruptcy court two years ago. MERS asked bankruptcy Judge Linda Riegle for permission to start foreclosure proceedings against a property owned by Lisa Marie Chong. Bankruptcy trustee Lenard Schwartzer objected, saying the electronic system was not a "real party in interest" in the mortgage loan. Like many mortgages, Chong's loan had been securitized, meaning it had been pooled or packaged into a security held by investors. MERS was unable to show that it had possession of the note. The bankruptcy judge ruled in Schwartzer's favor. The decision was appealed to federal court. In his decision Tuesday, Dawson said the registration system does not lose money when borrowers fail to make payments on home mortgages.