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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.

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, November 15, 2013— MERSCORP Holdings, Inc. announced that the Superior Court in the Commonwealth of Massachusetts dismissed three consolidated actions involving recording fee cases. Justice Janet L. Sanders dismissed lawsuits filed by Bristol County, Norfolk County and Plymouth County in Massachusetts, ruling in favor of MERSCORP Holdings, Inc., Mortgage Electronic Registration Systems, Inc. (MERS) and numerous other defendants.

In pdf Bristol County vs. MERSCORP, Inc., et al. (1.50 MB) , the plaintiffs alleged that the defendants have avoided paying a recording fee in connection with assignment from one MERS member to another. Rejecting the plaintiff’s claims, Justice Sanders wrote, “If the underlying note is assigned to another lender who is a member of the MERS system, MERS remains as the mortgagee, acting as nominee for the new note holder. … No recordation is necessary because there has been no change as to who holds legal title.” Citing to an opinion by the Massachusetts Supreme Court in the pdf Eaton (596 KB)  case, Justice Sanders continued her argument and further stated that “If the SJC [Supreme Judicial Court] had some doubt or concerns as to the legality of the MERS system, then surely it would have so indicated.”

“These cases are another example of county recorders seeking inappropriately to recover fees for recording services that were not required by state law or performed by the counties,” 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, 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: Janis Smith
Phone: 703-738-0230
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Reston, Virginia, November 13, 2013— Below is a monthly summary of major legal decisions involving either the use of the MERS® System or Mortgage Electronic Registration Systems, Inc. (MERS) and its role in the mortgage process.  Please 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

  • Fifth Circuit Rules MERS’ Mortgage Assignment Valid, October 31, 2013
    “The terms of the deed of trust are clear in granting MERS the power to assign its rights,” the court wrote. “MERS assigned its right to foreclose to Bank of America and Bank of America exercised that right.” Citing Martins, the court further held that “the Texas Property Code allows a party who has been assigned the deed of trust by MERS to foreclose, regardless of whether that party also holds the underlying note.”

Other Relevant Cases

For descriptions of cases and other materials, 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.

Ruling Cites Statutory and Constitutional Basis

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, November, 12, 2013— MERSCORP Holdings, Inc. today announced that Judge James S. Heckerman  of the Fourth Judicial District of Iowa,  sitting in Pottawattamie County, Iowa  confirmed  in a judgment that Mortgage Electronic  Registration Systems, Inc. ., as mortgagee, was entitled to receive a Notice of the Right to Redeem.

In pdf Flagstar Bank, FSB vs. Lone Pine Capital, LLC (137 KB) , petitioner Flagstar Bank, FSB as assignee by an assignment of the mortgage from MERS and now mortgagee, filed a claim that “the Notice of Right to Redeem was not properly sent to all parties in that it was not sent to the then-mortgagee MERS.”

In granting summary judgment to the plaintiff, Judge Heckerman, noted that he “is persuaded by the Iowa law, both statutory and case law [ ], and believes MERS was entitled to receive the Notice of Right to Redeem, both as a Mortgagee and as a person having an interest of record.” Further, he wrote, “… the Iowa statute created an independent constitutional right to notice of the tax sale.”  Citing to §447.9(2) of the Code of Iowa, Judge Heckerman noted, “the plain terms [of the statute] grants MERS the right to notice of tax sales that may deprive MERS of its interest in property.  Having given that statutory right to MERS, the State may not deprive MERS of its benefits.”

“This Iowa court ruling plainly supports MERS’ interests and rights as the mortgagee and nominee for the lender and the lender’s successors and assigns,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “Judge Heckerman also noted that the mortgage document signed by the borrower clearly stated MERS’ rights.”

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.

  • 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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