Yes. This is the biggest problem with MERS. They totally screwed up titles across the country and did NOT properly file paperwork that is necessary to maintain a clear and unambiguous title. This was done to help banks and other entities to save money when they were packaging mortgages into investment packages.
It is not a good idea to screw up clear titles. We haven't yet seen the full implications of what they've done because the government has been working overtime to hide much of the damage.