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FOR IMMEDIATE RELEASE

CONTACT: Janis Smith
Phone: 703-738-0230
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Reston, Virginia, August 13, 2014—MERSCORP Holdings, Inc. today announced two recent decisions from the Ohio Courts of Appeals, Seventh and Twelfth Districts, upholding MERS’ authority to assign a mortgage.

In pdf Wells Fargo Bank N.A., v. Geiser (1.99 MB) , CA2013-06-103, 2014-Ohio-3379, the borrowers appealed an order of the Butler County Court of Common Pleas granting summary judgment to foreclosing party Wells Fargo. In affirming the trial court, the Court of Appeals of Ohio, Twelfth District, held that Wells Fargo was the real party in interest entitled to foreclose because it showed it was the current holder of the note and mortgage. The appellate court rejected the borrowers’ argument that the assignment from MERS to Wells Fargo was invalid, holding that the borrowers lacked standing under Ohio law to challenge an assignment to which they were not parties. Further, “even if appellants could challenge the assignment, Ohio courts have ‘consistently held that MERS has authority to assign a mortgage when it is designated as both a nominee and mortgagee.’” (Quoting Bank of New York Mellon v. Putnam, 12th Dist. Butler No. CA2012-12-267, 2014-Ohio-1796.) The borrowers contractually agreed, by signing the mortgage, that MERS had the power to assign its interest in the security instrument to another party.

In pdf Bank of America, N.A. v. Miller (57 KB) , No. 12CVE27322, 2014-Ohio-2932, the Court of Appeals of Ohio, Seventh District, also rejected a borrower’s argument that an assignment by MERS was invalid. The appellate court affirmed a foreclosure judgment entered by the Carroll County Court of Common Pleas and stated that “this court has acknowledged the validity of mortgage assignments involving MERS and concluded that they do not affect a successor’s standing as the real party in interest.”

“These holdings are consistent with prior rulings throughout the country that have confirmed MERS’ authority to assign a mortgage,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “This authority is established by plain language in the mortgage document signed by a borrower at closing.”

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.

 

 

 Court Cites to Numerous Cases Recognizing MERS as Mortgagee and its Authority to Assign

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, August 12, 2014—MERSCORP Holdings, Inc. today announced that the Commonwealth of Massachusetts Superior Court granted summary judgment in favor of MERS in a suit challenging MERS’ authority to assign a mortgage.

In pdf Gardner v. Mortgage Elec. Registration Sys, Inc. (168 KB) , the plaintiff alleged that MERS could not assign the mortgage because MERS was only the nominee for the original lender and did not hold the note. Further, the plaintiff alleged that the assignment was fraudulently recorded and executed after the foreclosure process began.

In the decision, Justice Edward J. McDonough cited to the holdings from the U.S. First Circuit Court of Appeals decisions in pdf Culhane v. Aurora Loan Servs of Nebraska (115 KB)  and pdf Mills v. U.S. Bank Nat’l Ass’n (52 KB) , for the premise that “ … [MERS] may validly serve both as the holder of ‘bare legal title as mortgagee of record’ and as ‘nominee for the member-noteholder.’’’ Justice McDonough also recognized that MERS did not need to possess an interest in the note in order to be the mortgagee or assign its interest.

“Massachusetts courts are ruling consistently that MERS may validly serve as both the mortgagee of record and the nominee for MERS® System member note holders,” said MERSCORP Holdings 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.

###

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.

 

Decisions affirm MERS’ role as mortgagee and the validity of its assignments

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 July, 25, 2014—MERSCORP Holdings, Inc. today announced two recent decisions in favor of Mortgage Electronic Registration Systems, Inc. (MERS) from the United States Court of Appeals for the Fifth Circuit and the United States District Court for the Southern District of Texas. Both decisions affirmed MERS’ role as mortgagee, as well as the validity of its assignments.

In pdf Staten v. Lex Special Assets, LLC (87 KB) , the U.S. District Court for the Southern District of Texas adopted the Magistrate’s Report and Recommendation and rejected the plaintiffs’ challenges to the MERS assignment based on a theory that MERS “was merely a vehicle for abusive trading of mortgage notes. …” Relying on the Fifth Circuit Court of Appeals’ decision in Farkas v. GMAC Mortgage, (5th Cir. 2013), which concluded that “MERS “‘qualifies as a mortgagee’” and does have the power to assign deeds of trust,” the U.S. District Court held that the plaintiffs cannot state a claim based on MERS’ authority to make assignments. Furthermore, the court held that the plaintiffs also lacked standing to challenge the validity of the mortgage assignment because they were not parties to the assignment.

Similarly, in pdf Rojas v. Wells Fargo Bank, N.A. Rojas v. Wells Fargo Bank, N.A. (110 KB) , the U.S. Court of Appeals for the Fifth Circuit upheld the validity of the MERS assignment. The Court found that “there is no question that MERS, and its assignees, had the authority to foreclose on the property,” and noted that it has “repeatedly rejected similar attempts to challenge an assignee’s standing to foreclose under an assignment from MERS.”

“We are pleased with these decisions made by the U.S. District Court of Texas and the Fifth Circuit Court of Appeals,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “These courts have upheld MERS’ authority and the validity of its assignments time and time again.”

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: Janis Smith
Phone: 703-738-0230
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Reston, Virginia July, 21, 2014—MERSCORP Holdings, Inc. today announced two recent decisions from the United States Court of Appeals for the Eleventh Circuit and the United States District Court for the Middle District of Georgia, upholding MERS’ authority to assign security deeds as the grantee of record.

In pdf Walker v. U.S. Bank (47 KB) , the appellant sought reversal of a decision by the United States District Court for the Northern District of Georgia, which dismissed a challenge to the validity of a MERS assignment of a security deed. The District Court found that as a non-party to the assignment, the appellant could not challenge the validity of the assignment. The Eleventh Circuit affirmed the District Court’s ruling, stating that “[w]ith respect to assignment contracts, Georgia law dictates that a litigant who was not a party to an assignment contract is a stranger to that contract and lacks standing to challenge it.”

In pdf Restivo v. Bank of America Corp. (228 KB) , the plaintiff filed a wrongful foreclosure suit alleging, among other claims, that MERS was only a nominee, and therefore MERS had no interest in the security deed and no right to assign it.The District Court rejected the plaintiff’s claim that MERS had no interest in the security deed, finding that the borrower could not challenge the validity of the assignment because the plaintiff was not a party to the assignment contract. The District Court further held that even if a challenge could be brought, it would not have succeeded because “Georgia courts have held that MERS, as grantee named in the security deed, has an interest in and the authority to assign said security deed.”

“MERS has a valid interest in security instruments and the authority to assign that interest. This has been a consistent holding in courts in both in Georgia and across the country,” said MERSCORP Holdings 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.

###

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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Click here to proceed.

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Click here to proceed.

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Click here to proceed.