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Dismisses "Fraud by Use of MERS” Case

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 7, 2013 — MERSCORP Holdings, Inc. today announced that U.S. District Court Judge Terrence W. Boyle of  the Eastern District of North Carolina dismissed a lawsuit filed against  Mortgage Electronic Registration Systems, Inc. (“MERS”), JP Morgan Chase Bank, and other MERS® System members.

In the case of pdf James Porterfield vs. JP Morgan Chase Bank NA, , Inc. MERS, et al , the  plaintiff brought several counts including “fraud by use of MERS” alleging that MERS could neither be a named beneficiary nor a nominee of a lender in the Deed. The plaintiff further claimed that the “the hidden purpose of MERS is to defraud borrowers and the clerks of court by hiding the true owners of secured interests on property in opposition to common law policies and the laws of North Carolina, and that all transfers of the Deed or the Note by MERS are void.”

Judge Boyle  found that “despite the plaintiff’s contention to the contrary, the Deed unequivocally identifies MERS and its position.” Additionally, Judge Boyle ruled that “the plaintiff has failed to uncover any case finding that MERS violates North Carolina law whereas several other courts have held that MERS is lawful and accordingly has the authority to assign it rights under deeds of trust.”

“This ruling serves as a reminder that prior case law has been settled. Courts have consistently found that MERS has authority to assign its rights under deeds of trust,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “MERS has legal authority to act on behalf of the lender – including the right to execute the assignment or foreclose – and this authority is granted by plain language in the mortgage document signed at closing by the borrower.”

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, October 31, 2013— MERSCORP Holdings, Inc. today reported that a three-judge panel of the United States Court of Appeals for the Fifth Circuit last month ruled in favor of MERSCORP Holdings, Inc.  and its co-defendants, affirming a lower court’s decision dismissing the plaintiff’s claims of wrongful foreclosure.  The Fifth Circuit is a federal court with appellate jurisdiction over the district courts of Louisiana, Mississippi and Texas.

In pdf Kramer v. Fannie Mae (84 KB) , Judges E. Grady Jolly, Harold R. Demoss, Jr. and Leslie H. Southwick rejected the plaintiff’s claims challenging MERS’ authority to assign the deed of trust and that Bank of America, as an assignee of MERS, lacked the power to foreclose because it allegedly did not hold both the deed of trust and the underlying note.

“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 pdf Martins (102 KB) , 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.”

“It should be no surprise that the Court of Appeals affirmed the lower court’s decision,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “As this panel has made clear, MERS has legal authority to act on behalf of the lender – including the right to execute the assignment or foreclose – and this authority is granted by plain language in the mortgage document signed at closing by the borrower.

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 more information about AllRegs, contact: 

Krista Sabol
Vice President, Marketing & Communications
This email address is being protected from spambots. You need JavaScript enabled to view it. or 651-289-4809

For more information about MERS, contact:

Janis Smith
Vice President, Communications
This email address is being protected from spambots. You need JavaScript enabled to view it. or 703-738-0230

Eagan, Minn.  (October 21, 2013). AllRegs, the leading information provider in the mortgage industry, is proud to announce that MERSCORP Holdings, Inc. ("MERSCORP Holdings") the parent company of Mortgage Electronic Registration Systems, Inc. (MERS), will make the current versions of its MERS® System Rules of Membership and MERS® System Procedures Manual available in the AllRegs Information System known as AllRegs Online. This content is now available to AllRegs subscribers in the company’s flagship product, the Single-Family Lending Package.

AllRegs users who access the MERS® System content will now benefit from a variety of productivity tools, including an electronic Table of Contents tree with links to guidelines, a robust search engine that features a thesaurus with industry jargon and relative matching results.

“We at AllRegs are excited to work with MERSCORP Holdings and publish the MERS® System Rules of Membership and Procedures Manual to provide our customers the reference information they need as MERS® System members,” says Dan Thoms, Executive Vice President of AllRegs. “Delivered through our proprietary technology, the MERS® System content is an important and valuable addition to our library of mortgage industry content.”

“Our members have asked us to publish current governing documents on AllRegs, and we are pleased to be able to provide them with an additional tool they can use to access these documents ,” said Janis Smith, MERSCORP Holdings’ Vice President for Communications.   The MERS® System documents hosted on AllRegs Online will be updated as changes occur, however, the controlling version of the governing documents for the MERS® System will continue to reside on MERSCORP Holdings' Member website.

For more information about AllRegs and its publishing services, visit www.allregs.com or contact AllRegs at (800) 848-4904, Monday through Friday, between the hours of 8:00 a.m. and 6:00 p.m. CT.

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About MERSCORP
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 AllRegs®
First introduced in 1989, AllRegs is used by virtually all of the top 100 lenders as well as throughout numerous governmental agencies, including Fannie Mae, Freddie Mac, the FHLBs, FHA, VA, RHS, Ginnie Mae, and more. AllRegs is the exclusive electronic publisher of the Fannie Mae and Freddie Mac Single and Multi-Family Seller/Servicer Guides and The Federal Home Loan Banks’ MPF Program Guidelines. Products include single and multifamily underwriting & insuring guidelines as well as federal compliance laws and regulations, state compliance laws and regulations with plain-language analyses, contract publishing services, policy manuals and a library of historical guidelines. The educational division, AllRegs Academy, offers virtual and live training, as well as designation and practical guides. The Professional Services Group develops custom guides, policy manuals and other documents on a contract basis. For more information, call (800) 848-4904 or go to www.allregs.com.

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, October 10, 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

Illinois

  • MERS Wins Dismissal of Macon County, Illinois Recording Case, September 12, 2013
    “Rejecting entirely the plaintiff’s claims, U.S. District Court Judge Michael McCuskey adopted the recommendation of U.S. Magistrate Judge David Bernthal who wrote, ‘Defendants lawfully recorded and paid recording fees for the original mortgage, naming MERS as nominee. At that time, first-lien priority attached to the recorded mortgage pursuant to state law. Defendants lawfully chose not to record intermediate transfers. Thus, they did not owe recording fees for those transfers. None of this conduct is wrongful…’”

Other Relevant Cases

  • Arizona: Sitton v. Deutsche Bank National Trust Co.: Judgment for the Defendant
  • California: Siliga v. MERS, Inc.: Judgment for the Defendant
  • Georgia: Seeney v. Nationstar Mortgage: Judgment for the Defendant
  • Kansas: Deutsche Bank National Trust Co. v. Son: Judgment for the Plaintiff
  • Michigan: Carmack v. The Bank of New York Mellon: Judgment for the Defendant
  • Ohio: Wells Fargo v. Elliott: Judgment for the Plaintiff
  • Oregon: Hart v. Pacific Trust Bank: Judgment for the Defendant
  • Tennessee: Dillard v. Bank of America: Judgment for the Defendant
  • Texas: Kramer v. Federal National Mortgage Association: Judgment for the Defendant
  • Texas: Morse v. Commonwealth Land Title Insurance Co.: Judgment for the Defendant
  • Texas: Puente v. CitiMortgage, Inc.: Judgment for the Defendant
  • Washington: Bavand v. OneWest Bank: Judgment for the Defendant
  • Washington: Myers v. MERS, Inc.: Judgment for the Defendant
  • Washington: Thepvongsa v. Regional Trustee Services Co.: Judgment for the Defendant

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.

  • 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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    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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    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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