Circuit Court Ruled No Duty to Record Assignments in State of Arkansas

FOR IMMEDIATE RELEASE       

CONTACT: Janis Smith
Phone: 703-738-0230
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Reston, Virginia, December, 2, 2013— MERSCORP Holdings, Inc. today announced that the Circuit Court of Lonoke County, Arkansas Civil Division dismissed with prejudice an Amended Class Action Claim against the company filed by the Lonoke County Circuit Clerk and Recorder.

In pdf Lonoke County, Arkansas, by and through Deborah Oglesby, Lonoke County Circuit Clerk and Recorder vs. MERSCORP, Inc., et al. (128 KB) , Circuit Court Judge Sandy Huckabee ruled in an order entered on November 25, 2013, that “Based on current Arkansas law, consistent with the decisions of the Arkansas Supreme Court, there is no duty to record assignments in the State of Arkansas.” Further she concluded, “Therefore, the Court finds that each claim in the Amended Class Action Complaint fails to plead a basis upon which relief can be granted.”

A similar suit filed by the Circuit Clerk of Hot Spring County, Arkansas was dismissed in September by U.S. District Judge Susan O. Hickey of the U.S. District Court for the Western District of Arkansas, Hot Springs Division, who held that “Arkansas’s statutes ‘do not require assignments to be recorded.’” 

“We have consistently held that the MERS business model complies with the requirements of the recording statutes,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith.

This decision joins the dismissals of similar lawsuits brought by county recorders in Minnesota, North Carolina, Rhode Island, Michigan, Oklahoma, Iowa, Florida, Arkansas, Illinois, Missouri, Massachusetts and Kentucky.

For descriptions of cases and other materials pertainingto 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.