Superior Court Judge Delivers Point-by-Point Rejection of Plaintiff’s “Baseless” Legal Theories

CONTACT: Jason Lobo
Phone: 703.652.1660
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Reston, Virginia, December 21, 2012— MERSCORP Holdings, Inc. today announced that Georgia Superior Court of Gwinnett County Judge R. Timothy Hamil recently upheld MERS’ role as grantee under the security deed, affirmed MERS’ ability to assign its interests under the security deed and rejected numerous legal theories presented by the borrower asserting fraud.

In pdf White v. Citibank, N.A. (50 KB) ,Judge Hamil held that “[t]here can be no dispute that under Plaintiff’s allegations and admissions, CitiMortgage had the authority to conduct the Foreclosure and did so in accordance with Georgia law, and Plaintiff’s allegations to the contrary are meritless.”

The borrower alleged, among many things, that the loan documents were defective and that the assignment of the security deed executed by MERS was faulty. He sought court relief preventing eviction.

Addressing MERS’ authority under the security deed, Judge Hamil held that “…Georgia law is clear that, as nominee of the originating lender, MERS had the ability and legal authority to transfer and assign the Security Deed.” He noted that “[a]t the time of the assignment, MERS had been designated to act in connection with the Security Deed, and pursuant to express terms of the Security Deed, MERS had the authority to assign the Security Deed.”

Judge Hamil also held that the borrower “lacks standing to challenge the assignment” because he was not a party to the contract and that the borrower has not “pointed to any law or other authority whatsoever in Georgia that would prevent employees of CitiMortgage, who are also ‘certifying officers’ of MERS, from executing the Assignment on behalf of MERS.”

“Judge Hamil’s ruling is clear that MERS’ role as grantee on security deeds and its authority to assign security deeds in Georgia is valid,” MERSCORP Holdings Director of Communications, Jason Lobo, said. “This decision is in line with the majority of courts across the country.”

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MERSCORP Holdings, Inc. is a privately held corporation that owns and manages the MERS® System and all other MERS® products. It is a member-based organization made up of thousands of lenders, servicers, sub-servicers, investors and government institutions. Mortgage Electronic Registration Systems, Inc. (MERS) serves as the mortgagee in the land records for loans registered on the MERS® System, and is a nominee (or agent) for the owner of the promissory note. The MERS® System is a national electronic database that tracks changes in mortgage servicing and beneficial ownership interests in residential mortgage loans on behalf of its members.