MERSlogo

homepage photoHomepageTagline

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, June 6, 2013 — We view today's opinions from the Oregon State Supreme Court as consistent with Mortgage Electronic Registration Systems, Inc.'s (MERS) role and authority to act on behalf of lenders in Oregon. Ruling in pdf Brandrup v. Recontrust Company, N.A (242 KB) and pdf Niday v. GMAC Mortgage, LLC. (141 KB) , 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.

The Court also held that Oregon's nonjudicial foreclosure statute "does not require recordation of 'assignments' of the trust deed by operation of law that result from the transfer of the secured obligation." These rulings will allow lenders to move forward with nonjudicial foreclosure proceedings in the state.

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

###

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, June 4, 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

Alabama

  • Alabama Supreme Court Upholds Lower Court’s Recognition of MERS’ Authority to Assign Mortgages
    “The trial court denied the borrowers’ request; affirmed Fannie Mae’s standing to bring the ejectment action and the judgment in favor of Fannie Mae. The trial court found that the borrowers’ claim regarding MERS’ lack of authority to assign the mortgage as ‘being contrary to Alabama law’ because ‘[t]he ability of MERS to assign a mortgage or take other actions as the nominee for a lender and that lender’s assigns in a mortgage has been affirmed in Alabama.’ ”

Arizona

  • MERS Wins Important Property Tax Foreclosure Case in Arizona
    “The Court of Appeals found that the deed of trust ‘not only expressly identifies MERS as the nominee for the lender, but also beneficiary, and the holder of legal title to the Property.’ The Court found that Delo should have provided notice of the tax lien foreclosure lawsuit to MERS because MERS’ interest in the property was acquired before Delo had acquired his interest.”

Michigan

  • MERS Prevails in Michigan Federal Court Transfer Tax Suit
    “Despite the County Registers’ lack of standing, Judge Bell commented sternly on their arguments, saying, ‘Plaintiffs’ complaint and briefs make inaccurate statements of the law under the CRETTA and allege far-fetched theories of liability…the Court will not allow Plaintiffs to continue ‘fishing’…when transfer taxes are indisputably not owed...’ ”

New Hampshire

  • New Hampshire Superior Court Rules in MERS’ favor
    “In Bennett v. MERS, Justice Tucker, citing the U.S. Court of Appeals for the First Circuit’s ruling in Culhane v. Aurora Loans Services, held that ‘[t]he fact that the Note has been transferred does not affect MERS’s status as mortgagee, since it operates under a system in which it remains as mortgagee if the note is sold by one MERS member to another.’ ”

New York

  • “Mass Action” Case against MERS Members Unsupported by Facts
    “In Abraham v. American Home Mortgage Servicing, Inc., et al., Judge Kuntz rejected a ‘mass action’ attempt by hundreds of borrowers, finding that they were joined improperly and that, more importantly, the bases for their complaint were ‘threadbare recitals’ and ‘conclusory statements’ unsupported by specific facts.”

North Carolina

Texas

  • MERS Model Prevails Again in the Fifth Circuit
    “ ‘Numerous district courts have addressed this question, and each one to analyze Texas law has concluded that Texas recognizes assignment of mortgages through MERS and its equivalents as valid and enforceable,’ Judge Smith wrote on behalf of the panel. The Court further held that Texas differentiates between enforcement of a note and foreclosure, with the latter enforcing a deed of trust, and can be accomplished without judicial supervision. Importantly, the Court noted that “the mortgage was assigned by MERS, which had been given such power, including the power to foreclose, by the deed of trust.’ ”

Washington

  • Washington Federal Court Ruling Favors MERS
    “ ‘The fact that MERS is listed as a beneficiary of the deed of trust is not relevant to the outcome of this case,’ Judge Rice wrote, ruling that since U.S. Bank was the holder of the plaintiff’s note and deed of trust, it had the authority to foreclose.”

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. 

###

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 Rules Register of Deeds' "underlying causes of action are fatally flawed"

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, May 30, 2013 – MERSCORP Holdings, Inc. today announced that a North Carolina State Superior Court Judge dismissed a lawsuit filed by the Guilford County, NC Register of Deeds, ruling in favor of MERSCORP Holdings, Inc., Mortgage Electronic Registration Systems, Inc. (MERS) and multiple member institutions.

In pdf Guilford County, ex rel. Jeff L. Thigpen, Guilford County Register of Deeds v. Lender Processing Services, Inc., et al. (80 KB) pdf ,  John R. Jolly, Jr., Chief Special Superior Court Judge for Complex Business Cases of the General Court of Justice, Superior Court Division, found that Thigpen lacked standing to bring the suit on behalf of the county and its citizens.

Thigpen alleged that numerous fraudulent and invalid satisfactions were filed in violation of the statute, which requires secured creditors to submit for recording satisfactions within 30 days after receiving full payment. Judge Jolly found that "[T]he Guilford County Register of Deeds is not a 'landowner' as defined in the statute, and therefore, it may not bring a cause of action" under this North Carolina law.

Thigpen also alleged that the use of the MERS System by its members is an unfair and/or deceptive act or practice that has harmed and damaged the County, the Register and the public. Judge Jolly held that the act of submitting documents to the Register for recording is not a "business transaction between the parties as to give rise to liability under Chapter 75," but instead is the Register "fulfilling a statutorily-defined administrative role and acting as a governmental body." Therefore, the Register's claim failed as a matter of law.

As for Thigpen's claim unjust enrichment which covers "lost filing fees," Judge Jolly found that the Register failed to demonstrate that its office conferred any benefit to MERS and its members. He noted that "North Carolina law does not require an assignment of a mortgage or deed of trust to be recorded in order to be effective."

Lastly, Judge Jolly denied Thigpen's request for a special master to identify fraudulent or invalid documents at the expense of the defendants, holding that the "portion of Plaintiff's Motion seeking the appointment of a special master must also be DENIED as there is no basis for the appointment of a special master pursuant to [North Carolina law] where there is no underlying cause of action."

"This court decision joins other dismissals of lawsuits brought by county recorders in Michigan, Oklahoma, Iowa, Florida, Arkansas, Illinois, Missouri and Kentucky," MERSCORP Holdings' Director for Corporate Communications Jason Lobo said.

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

###

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.

Federal Court Finds Plaintiffs Allegations Fall Flat

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, May 30, 2013 – MERSCORP Holdings, Inc. today announced that Judge William F. Kuntz, II, of the U.S. District Court for the Eastern District of New York ruled in favor of MERSCORP Holdings, Inc. and dozens of MERS member institutions in a suit asserting a litany of allegations surrounding conspiracy and fraud.

In pdf Abraham v. American Home Mortgage Servicing, Inc., et al. (907 KB) pdf ,  Judge Kuntz rejected a "mass action" attempt by hundreds of borrowers, finding that they were joined improperly and that, more importantly, the bases for their complaint were  "threadbare recitals" and "conclusory statements" unsupported by specific facts. "Mass action" is defined as any civil action in which monetary relief claims of 100 or more persons are proposed to be tried together on the grounds that the plaintiffs' claims involve common question of law or fact.

"[T]his Court finds Plaintiffs have failed to 'plead sufficient factual matter' ... to 'state a claim to relief that is plausible on its face,' " Judge Kuntz wrote. He further held that "[p]laintiffs' unsupported and speculative allegation that Defendants conspired  with one another is insufficient to establish a related series of transactions or occurrences so as to permit joinder. This Court therefore finds that Plaintiffs' claims are misjoined..."

Judge Kuntz granted the defendants' motion to sever and dismiss without prejudice all Plaintiffs except the first named plaintiff, Ms. Abraham, whose complaints he subsequently dismissed in their entirety.

"Judge Kuntz's ruling clearly established that borrowers who engaged in separate loan transactions by different lenders generally cannot be joined in a single action," MERSCORP Holdings Director for Corporate Communications, Jason Lobo, said.  "As importantly, he found that none of the allegations were supported by a single fact and further rejected an attempt to amend the complaint a third time as 'futile.' "

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

###

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.

    Read More
  • 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.

    white paper site

    Read More
  • 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. 

    Read More
  • 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.

    Read More
  • 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.

    Read More
  • 1
  • 2
  • 3
  • 4
  • 5

Home          l          Contact Us          l          Privacy Policy          l          Site Map                                                 twitterlinkedinvimeo


Copyright© 2017 by MERSCORP Holdings, Inc. (800)-646-6377
Other products or company names are or may be trademarks or registered trademarks and are the property of their respective holders.

You are now leaving MERSCORP Holdings' website and entering an external website. MERSCORP Holdings cannot attest to the accuracy of information provided by linked sites. Linking to a website does not constitute an endorsement by MERSCORP Holdings or any of the products presented on the site.

Click here to proceed.

You are now leaving MERSCORP Holdings' website and entering an external website. MERSCORP Holdings cannot attest to the accuracy of information provided by linked sites. Linking to a website does not constitute an endorsement by MERSCORP Holdings or any of the products presented on the site.

Click here to proceed.

You are now leaving MERSCORP Holdings' website and entering an external website. MERSCORP Holdings cannot attest to the accuracy of information provided by linked sites. Linking to a website does not constitute an endorsement by MERSCORP Holdings or any of the products presented on the site.

Click here to proceed.

You are now leaving MERSCORP Holdings' website and entering an external website. MERSCORP Holdings cannot attest to the accuracy of information provided by linked sites. Linking to a website does not constitute an endorsement by MERSCORP Holdings or any of the products presented on the site.

Click here to proceed.

You are now leaving MERSCORP Holdings' website and entering an external website. MERSCORP Holdings cannot attest to the accuracy of information provided by linked sites. Linking to a website does not constitute an endorsement by MERSCORP Holdings or any of the products presented on the site.

Click here to proceed.

You are now leaving MERSCORP Holdings' website and entering an external website. MERSCORP Holdings cannot attest to the accuracy of information provided by linked sites. Linking to a website does not constitute an endorsement by MERSCORP Holdings or any of the products presented on the site.

Click here to proceed.

You are now leaving MERSCORP Holdings' website and entering an external website. MERSCORP Holdings cannot attest to the accuracy of information provided by linked sites. Linking to a website does not constitute an endorsement by MERSCORP Holdings or any of the products presented on the site.

Click here to proceed.

You are now leaving MERSCORP Holdings' website and entering an external website. MERSCORP Holdings cannot attest to the accuracy of information provided by linked sites. Linking to a website does not constitute an endorsement by MERSCORP Holdings or any of the products presented on the site.

Click here to proceed.

You are now leaving MERSCORP Holdings' website and entering an external website. MERSCORP Holdings cannot attest to the accuracy of information provided by linked sites. Linking to a website does not constitute an endorsement by MERSCORP Holdings or any of the products presented on the site.

Click here to proceed.

You are now leaving MERSCORP Holdings' website and entering an external website. MERSCORP Holdings cannot attest to the accuracy of information provided by linked sites. Linking to a website does not constitute an endorsement by MERSCORP Holdings or any of the products presented on the site.

Click here to proceed.