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Federal Judges Rule No Valid Claims Exist Against MERS 

FOR IMMEDIATE RELEASE

CONTACT: Janis Smith
Phone: 703-738-0230
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Reston, Virginia, November, 20, 2013— MERSCORP Holdings, Inc. today announced that two federal judges in the Western District of Washington found in MERS’ favor when they dismissed two borrower initiated actions alleging MERS’ role in the borrower(s)’ deeds of trust caused them injury. First, U.S. District Court Judge John C. Coughenour granted MERS’ motion to dismiss in pdf Reid v. Countrywide Bank, N.A., el al. (108 KB) , ruling that Plaintiffs’ claims against MERS were speculative at best. Judge Coughenour found no evidence that a valid claim existed against MERS and specifically stated that “[i]f Plaintiffs were able to show any injury resulting from MERS having been named as the beneficiary on the Deed of Trust, they would have done so.”  Accordingly, Judge Coughenour dismissed the Plaintiffs’ second amended complaint with no further leave to amend.   

In a similar federal court ruling from Washington, Chief U.S. District Court Judge Marsha J. Pechman in  pdf Wear v. Sierra Pacific Mortgage Company, Inc. (138 KB)  dismissed a wrongful foreclosure complaint against a MERS® System member and other defendants.  The complaint contained claims of fraud and violations of Washington’s Consumer Protection Act and sought a declaratory judgment forever barring all defendants from foreclosing on plaintiff’s property.  In her opinion, Chief Judge Pechman found Plaintiff failed to show any fraudulent acts committed by MERS or injury caused by MERS’ role in Plaintiff’s deed of trust. Chief Judge Pechman added that “The only injury identified by Plaintiff is the pending foreclosure of his home.”  Furthermore, “Plaintiff does not claim that any action by the Defendants caused or induced the Plaintiff to default on the loan … Therefore, regardless of who the actual beneficiary was … Plaintiff’s property would still face foreclosure.”  

“Federal judges in both cases held that the allegations were not supported by the facts of each case and the borrower was not injured by MERS’ role in the mortgage process,” said MERSCORP Holding Vice President for Corporate Communications, Janis Smith.

For descriptions of cases and other materials pertaining to MERS’ business model and role in U.S. housing, please visit www.mersinc.org.

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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.

  • About Us

    About Us

    Today’s financial services industry depends on technological innovations to provide its customers with access to information, increased efficiency and reduced processing costs. MERSCORP Holdings, Inc. owns and operates the MERS® System, a national electronic registry system that tracks the changes in servicing rights and beneficial ownership interests in mortgage loans that are registered on the System.

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  • MERS® eRegistry

    MERS® eRegistry

    The MERS® eRegistry is essential to the eMortgage world. It is the legal system of record for identifying the Controller (holder) and Location (custodian) for the authoritative copy of a registered eNote. Lenders today are closing eNotes and selling them into the secondary market. Both Freddie Mac and Fannie Mae require that Lenders register their eNotes on the MERS® eRegistry.

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  • Information for Homeowners

    Information for Homeowners

    Homeowners today want information about their mortgage loans. Some are facing financial hardship and are struggling with mortgage payments. Information and helpful resources are available. 

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  • Neighborhood Benefits

    Neighborhood Benefits

    Title agents, government agencies and others looking for information about mortgage loans registered on the MERS® System can use Servicer ID or MERS® Link. This public access is often used by local municipalities to identify the servicer responsible for maintaining vacant or abandoned property.

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  • Media Room

    Media Room

    The MERSCORP Holdings, Inc. Media Room provides press contact information and facts about the company and its subsidiary, Mortgage Electronic Registration Systems, Inc. (MERS). These materials are provided to help national, regional and local media better understand the companies' business model and role in the U.S. housing finance system.

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