Judge rules MERS’ authority is clearly stated in the subject deed of trust

FOR IMMEDIATE RELEASE

CONTACTS :
Janis L. Smith
Phone: 703-738-0230
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Karmela Lejarde
Phone: 703-761-1274
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Reston, Virginia, December 29, 2011 —The U.S. District Court for the Western District of Washington (Seattle) on Dec. 16 dismissed the plaintiff’s wrongful foreclosure complaint in pdf Bhatti v. Guild Mortgage et al. (68 KB) , ruling that Mortgage Electronic Registration Systems, Inc. (MERS) can act as beneficiary under the deed of trust.

“MERS has the authority to act as beneficiary under the Deed of Trust where such authority is explicitly granted upon execution of the instrument,” wrote U.S. District Court Judge James Robart in his ruling. “In this case, Plaintiffs specifically agreed to MERS’ role as beneficiary under the Deed of Trust they signed. Their allegations that MERS did not have authority do not state a claim for relief.”

Judge Robart also cited to the Ninth Circuit Court of Appeals’ decision in pdf Cervantes v. Countrywide (99 KB)  in further support of his dismissal of the plaintiffs’ claims, noting that MERS’ status and authority are clearly stated in the subject deed of trust, which the plaintiffs signed, and that the plaintiff could not establish that he was misinformed about the MERS System. Judge Robart rejected the plaintiffs’ argument that MERS’ role in the securitization of mortgage loans is improper, writing that “securitization merely creates a separate contract, distinct from the Plaintiffs’ debt obligations under the Note, and does not change the relationship of the parties in any way.”

“We shall add this decision to the long list of rulings in Washington State that affirm MERS’ authority to act as the beneficiary under the deed of trust,” said Janis L. Smith, MERSCORP’s Vice President of Corporate Communications.

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