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Completed sale bars plaintiff’s MERS-related challenges

FOR IMMEDIATE RELEASE
Karmela Lejarde
Phone: 703.761.1274
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Reston, Virginia, August 5, 2013 – MERSCORP Holdings, Inc. today announced that the U.S. District Court for the District of Oregon dismissed a wrongful foreclosure complaint seeking to set aside a completed trustee sale of the property. MERS is not a party to the action; however the plaintiff alleged that the foreclosure was wrongful based in part on MERS’ role in his deed of trust.

In pdf Chen v. Bank of America, N.A. (76 KB) , Judge Owen M. Panner dismissed the complaint with prejudice and found that, in accordance with the Oregon Trust Deed Act, the plaintiff received proper notice of the sale, which barred his post-sale challenges to the foreclosure.

“Although plaintiff here had sufficient time to raise any of the current challenges before the sale, he chose instead to raise such challenges after the trustee’s sale and recording of the trustee’s deed,” Judge Panner wrote. Citing pdf Mikityuk v. Northwest Trustee Services , the court further held that, “plaintiff’s challenges to the trustee’s sale are barred, as plaintiff’s interest in the property was ‘foreclosed and terminated.’”

The plaintiff asked the court’s permission to amend his complaint to align his allegations with the recent pdf Brandrup v. Recontrust (242 KB)  and pdf Niday v. GMAC (141 KB)  decisions from the Oregon Supreme Court, in which the Oregon Supreme Court ruled MERS did not meet the statutory definition of trust deed “beneficiary” under Oregon law. Judge Panner denied plaintiff’s request, finding “an amended complaint, however, would be futile” because Brandrup and Niday dealt with pre-sale challenges to non-judicial foreclosure sales as opposed to plaintiff’s post-sale challenges which are barred under Oregon law.

“As Judge Panner made clear here, and in his Mikityuk decision, when a borrower is properly notified of the foreclosure sale of their property and they fail to stop the sale, they cannot seek to void a completed sale with allegations against MERS and its role in the borrower’s trust deed,” MERSCORP Holdings’ Vice President for Corporate Communications Janis Smith said.

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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.

 

Judge cites state Supreme Court ruling, says issue has been “conclusively resolved”

FOR IMMEDIATE RELEASE
CONTACT: Karmela Lejarde
Phone: 703-761-1274
Email: This email address is being protected from spambots. You need JavaScript enabled to view it. 

Reston, Virginia, July 26, 2013— MERSCORP Holdings, Inc. today announced that Rhode Island Superior Court Associate Justice Allen P. Rubine rejected another claim of wrongful foreclosure against Mortgage Electronic Registration Systems, Inc. (MERS) and other co-defendants.

In pdf Akalarian v. RBMG, Inc., et al , the borrower challenged MERS’ authority to assign the mortgage and claimed that the MERS assignment to IndyMac nullified IndyMac’s subsequent foreclosure.

In his ruling in favor of the defendants, Associate Justice Rubine wrote, “This issue has been conclusively resolved by the recent Rhode Island Supreme Court decision in pdf Bucci v. Lehman Bros. Bank, FSB (54 KB)  wherein the Court affirmed MERS’ authority to act as a mortgagee and as nominee of the lender pursuant to a mortgage contract and to exercise the statutory power of sale granted to MERS under that contract.” Justice Rubine also found that the Rhode Island Supreme Court’s adoption of the First Circuit’s reasoning in pdf Culhane v. Aurora (115 KB)  supported his finding that “a mortgagee executing a mortgage assignment need not be explicitly acting as an agent of the noteholder in order to transfer its bare legal interest in the mortgage …”

“With the Superior Court’s consistent rulings on this issue, and the Rhode Island Supreme Court’s decision in Bucci, the questions regarding MERS’ role in mortgage loan transactions has been consistently upheld,” said Janis L. Smith, MERSCORP Holdings Vice President of Corporate Communications. “The law in Rhode Island is clear.”

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.

District Court Finds State Has No Statutory Requirement to Record

FOR IMMEDIATE RELEASE
Jason Lobo
Phone: 703.652.1660
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Reston, Virginia, July 8, 2013— MERSCORP Holdings, Inc. today announced that Judge John J. McConnell, Jr., of the U.S. District Court for the District of Rhode Island recently ruled in favor of MERSCORP Holdings, Inc., Mortgage Electronic Registration Systems, Inc. (MERS) and other member-bank defendants in a Rhode Island recording fee suit.

In pdf Town of Johnson v. MERSCORP Holdings, Inc., et al. , Judge McConnell dismissed a class action suit filed by the Town of Johnston on its own behalf and on behalf of all other similarly situated Rhode Island cities and towns. Allegations included violations of Rhode Island’s recording requirements and unjust enrichment. Both counts were dismissed.

“Rhode Island law does not require that all mortgages and mortgage assignments be recorded,” Judge McConnell wrote. “Absent a statutory requirement to record, there are no damages, and, therefore there is no cause of action.”

Citing a previously established Rhode Island Supreme Court opinion in pdf Bucci v. Lehman Bros. Bank, FSB (54 KB) , Judge McConnell held that “[w]henever a note is sold, assigned, or otherwise transferred to another MERSCORP member, MERS remains the mortgagee of record. As a result, there is no need to record an assignment of the mortgage in the land evidence records. It is only when a loan is transferred to a nonmember that an assignment of the mortgage must be executed and recorded.”

“Rhode Island courts have consistently upheld MERS valid role and authority,” MERSCORP Holdings’ Director of Corporate Communications Jason Lobo said. “This ruling mirrors similarly dismissed recorder fee lawsuits brought by counties in North Carolina, Iowa, Florida, Arkansas, Illinois, Missouri and Kentucky,”

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.

FOR IMMEDIATE RELEASE
CONTACT: Jason Lobo
Phone: 703-652-1660
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Reston, Virginia, July 1, 2013— Below is a monthly summary of major legal decisions involving either the use of the MERS® System database or Mortgage Electronic Registration Systems, Inc. (MERS) and its role in the mortgage process. Please feel free to contact the This email address is being protected from spambots. You need JavaScript enabled to view it. at MERSCORP Holdings, Inc. with any questions and visit the MERS Newsroom for a full list of news releases.

Major Developments

Oregon

  • MERS’ Core Functions Unaffected by Oregon Supreme Court Rulings
    “Ruling in Brandrup v. Recontrust Company, N.A and Niday v. GMAC Mortgage, LLC., the Court said, ‘if it can be shown that the original lenders and their successors conferred sufficient authority on MERS, to act on their behalves in the necessary respects, MERS may have the authority, as the true beneficiary's agent, to hold and transfer interests in the trust deed.’ We are confident that we have and can prove such authority.”

Other Relevant Cases

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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