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FOR IMMEDIATE RELEASE

CONTACT: 
Jason Lobo
703.652.1660
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 MERS Statement on Kentucky AG Complaint

Reston, Virginia, January 23, 2013—“There is no merit to the allegations leveled at MERS by Kentucky Attorney General Jack Conway in today's news conference.   All MERS mortgages are registered in the local land records and all recording fees are properly paid.   The MERS® System's role in the mortgage industry has reduced chain of title issues, provided efficiencies through e-commerce, and resulted in lower mortgage borrowing costs.  Our business model is straightforward and transparent, and MERS role is clearly spelled out in the contract between borrower and lender.  MERS® System data is not used by servicers to make loan modification, refinance or foreclosure decisions.

In Kentucky, all foreclosures are judicial foreclosures and as such are processed by the court system. MERS’ standing as mortgagee has been upheld in –In re Jessup, No. 09-5229 (Bankr. E.D. KY 2010).   MERS and CitiMortgage’s Motion for Summary Judgment was granted and the court held that “the language in the Lender’s own instrument is sufficient to identify MERS as [the mortgagee].” 

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

 

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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.

Senior Judge Rules "Plaintiff cannot enforce a nonexistent obligation"

Reston, Virginia, January 15, 2013— MERSCORP Holdings, Inc. today announced that U.S. District Senior Judge Ortrie D. Smith of the U.S. District Court for the Western District of Missouri, Western Division, ruled yesterday in favor of Mortgage Electronic Registration Systems, Inc. (MERS) and other defendants, dismissing a recording fee suit filed by Jackson County, Missouri. 

In pdf Jackson County v. MERSCORP Jackson County v. MERSCORP (52 KB) , Judge Smith dismissed a five-count, putative class action suit filed on behalf of Jackson County and all other similarly situated counties in the State of Missouri, ruling that "Plaintiff cannot recover for the failure to record."   The suit – alleging unjust enrichment, civil conspiracy and prima facie tort – sought declaratory and injunctive relief under the primary allegation that MERS and its members failed to record deeds of trust assignments and therefore failed to pay the applicable county recording fees. 

Judge Smith’s January 14, 2013, Order ruled that Jackson County failed to state a claim for unjust enrichment because the claim is premised on the incorrect notion that MERS acted improperly by not recording assignments after initial deeds of trust were recorded.

“Here, Plaintiff has failed to state a claim for unjust enrichment…there is no duty to record assignments under Missouri law,” Judge Smith wrote.  While a benefit of priority is conferred by the Missouri recording statutes, the Judge noted that “… Plaintiff does not allege that Defendants fail to pay the applicable recording fees for the initial deeds of trust that were recorded.” 

“We are pleased with Judge Smith’s ruling,” MERSCORP’s Director for Corporate Communications Jason Lobo said.  “Missouri now joins four other states in which judges have granted our motions to dismiss lawsuits similar to this one.”

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.

 

Three-Judge Panel Rejects “Split-the-Note” Theory

 

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, January 8, 2013— MERSCORP Holdings, Inc. today announced that the United States Bankruptcy Appellate Panel of the Tenth Circuit held that Mortgage Electronic Registration Systems, Inc. (MERS) is a mortgagee in its capacity as nominee for the lender and its successors and assigns, that there is nothing impermissible in this arrangement and that “[a]t all times, the Note and Mortgage were united.”

In the case, pdf In re Trierweiler (68 KB) , the Panel’s decision, written by U.S. Bankruptcy Judge Dale L. Somers of the District of Kansas and joined by Chief Judge William T. Thurman of the District of Utah and Judge Elizabeth E. Grown of the District of Colorado, rejected the Trustee’s notion that MERS’ involvement in the transaction rendered the mortgage unenforceable and the Note unsecured and affirmed a decision rendered by the U.S. Bankruptcy Court for the District of Wyoming.

“The Trustee has pointed to no Wyoming authority that prohibits the loan originator from agreeing to have someone other than the beneficial owner of the debt hold the mortgage and enforce the debt as its agent,” Judge Somers wrote.  “We conclude that there is no split between the Note and Mortgage arising from MERS being named as Mortgagee….”  The Trustee has appealed the decision to the U.S. Court of Appeals for the Tenth Circuit.

 “We are pleased that the Appellate Court Panel affirmed the bankruptcy court’s decision,” MERSCORP Holdings Director of Communications, Jason Lobo, said.  “As this decision and the cases to which it cites demonstrate, the ‘split-the-note’ theory has failed time and again.”

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, January 8, 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 MERSCORP Holdings, Inc. This email address is being protected from spambots. You need JavaScript enabled to view it. with any questions and visit the MERS Newsroom for a full list of news releases.

Major Developments

Washington

 In Kullman v Northwest Trustee Services, Inc., Judge Leighton, citing the recent Bain v. Metropolitan Mortgage Group decision, found that the Washington Supreme Court “did not rule MERS involvement renders a foreclosure per se invalid.”  Judge Leighton noted that the borrowers failed to prove that they were harmed by MERS’ role in the foreclosure and that the borrowers admitted that they defaulted on their mortgage. The Court found the plaintiffs’ claims against MERS sought to generate controversy through this action where none exists. The Court also found no merit to plaintiffs’ claims for fraud or violation of Washington’s CPA against MERS and the other defendants.

Notable State and Federal Court Decisions

Georgia

“Addressing MERS’ authority under the security deed, Judge Hamil held that ‘…Georgia law is clear that, as nominee of the originating lender, MERS had the ability and legal authority to transfer and assign the Security Deed.’ He noted that ‘[a]t the time of the assignment, MERS had been designated to act in connection with the Security Deed, and pursuant to express terms of the Security Deed, MERS had the authority to assign the Security Deed.’”

Minnesota

“In its August 21, 2012, Order, the court granted the motion for sanctions because ‘[i]n spite of clear, binding precedent to the contrary,” Butler was continuing to assert the “consistently rejected ‘show me the note’ legal theory, along with similarly baseless quiet title and slander of title claims.’  This sanction is at least the sixth time Butler has been penalized for similar matters.”

Nevada

“’This court has determined that MERS is a valid beneficiary of the deed of trust...’  Justice Saitta wrote.  ‘MERS, in its capacity as the beneficiary of the deed of trust, was capable of assigning its own interest in the deed of trust and to appoint a substitute trustee.’”

New York

“’We are pleased with Justice Giacomo’s ruling, which corrects the borrowers’ misinterpretation of the Silverberg decision and recognizes MERS’ role as mortgagee with the authority to assign the mortgage,’ MERSCORP Holdings Director of Communications, Jason Lobo, said.”

Other Relevant Cases

•      California – Muhumuza v. Suntrust Mortgage, Inc. – pdf Judgment for the Defendant (129 KB)
•      Georgia – Jenkins v. McCalla Raymer – pdf Judgment for the Defendant (899 KB)
•      Georgia – Kabir v. Statebridge Company – Judgment for the Defendant
•      Hawaii – MERS v. Wise – pdf Judgment for the Defendant (175 KB)
•      Idaho – Maricich v. GreenPoint – pdf Judgment for the Defendant (546 KB)
•      New York – MERS v. Korolizky – pdf Judgment for the Plaintiff (215 KB)
•      Texas – Mahfoud v. Bank of America – pdf J udgment for the Defendant
•      Washington – FNMA v. Edwards – pdf Judgment for the Plaintiff (1.04 MB)  
•      Washington – Mickelson v. Chase Home Finance, LLC –  pdf Judgment for the Defendant (113 KB)

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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