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FOR IMMEDIATE RELEASE

CONTACT: Janis Smith
Phone: 703-738-0230
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Reston, Virginia, July 17, 2014—MERSCORP Holdings, Inc. today announced that the Court of Appeal of the State of California Second Appellate District affirmed the trial court’s order dismissing a wrongful foreclosure lawsuit.

In pdf Matlock v. J.P. Morgan Chase Bank, N.A., et al. (32 KB) , the plaintiffs had taken out a mortgage loan secured by a deed of trust that named Mortgage Electronic Registration Systems, Inc. (MERS) as the beneficiary as nominee for the original lender. The plaintiffs subsequently defaulted on this loan and were subject to a foreclosure action. In response, the plaintiffs brought an action against several financial institutions, including MERS, with a variety of claims alleging defects in the loan and foreclosure process. With respect to MERS, the plaintiffs claimed that MERS’ assignment of the loan’s deed of trust to U.S. Bank was improper and invalid, and as a result U.S. Bank’s appointed trustee, California Reconveyance Company, lacked standing to bring the foreclosure action.

The Court of Appeal held that under California law, because the plaintiffs were not a party to the assignment transaction, they did not have standing to challenge the validity of the assignment. In rejecting the plaintiffs’ position, Acting Presiding Justice Victoria Gerrard Chaney held that the only relevant parties to the assignment were MERS and U.S. Bank. The Court further explained that the “Plaintiffs lack standing to enforce any agreements relating to the transfer because they were not injured by it—their obligations under the loan remain unchanged.”

The appellate court also rejected the plaintiff’s’ attack on the assignment by MERS because they were in default of their mortgage payment obligation. “A debtor who is in default of a mortgage loan must allege a credible tender of the amount due to maintain any cause of action for wrongful foreclosure.” The plaintiffs’ other claims, unrelated to MERS, were likewise dismissed by the Court of Appeal on various legal and factual grounds.

“In a similar case last month, the Court of Appeal of the State of California Second Appellate District affirmed the dismissal of a borrower’s foreclosure challenge,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “This Court is showing a pattern that the law is established about challenging the MERS assignment.”

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.

 Appellate court again rejects the “split the note” theory

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 14, 2014—MERSCORP Holdings, Inc. today announced that the United States Court of Appeals for the Tenth Circuit recently ruled in favor of Mortgage Electronic Registration Systems, Inc. (MERS) and its co-defendants, affirming MERS’ role as mortgagee as nominee for the note owner.

In the case, pdf In re Trierweiler In re Trierweiler (68 KB) , the Court rejected the trustee’s allegations that MERS’ involvement as mortgagee resulted in a separation of the mortgage and note, rendering the mortgage unenforceable. The Court’s decision affirmed the judgment of the U.S. Bankruptcy Court for the District of Wyoming.

In rejecting the trustee’s arguments that the MERS mortgage was unenforceable, the Tenth Circuit cited two of its prior decisions involving Utah law, Commonwealth Property Advocates v. MERS and Burnett v. MERS. In those cases, the Court had held that nothing prohibited the parties to the note and deed of trust from designating a party other than the note owner to act on behalf of the note owner, including enforcing rights granted in the deed of trust. Here, the Court ruled that the same applied under Wyoming law as well.

“The deeds of trust in Commonwealth and Burnett like the mortgage executed by the Debtors in the case at bar, contained materially identical language reflecting the agreement of all parties to the loan transaction that MERS would act as mortgagee solely in a representative capacity for the lender and any of its ‘successors and assigns,’” Judge Lucero wrote. “The Trustee has offered no convincing explanation as to why Wyoming law would treat promissory notes and security instruments any differently …”

“We are pleased with the appellate court’s affirmation of the bankruptcy court’s decision and recognition of MERS’ role as mortgagee,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “This is another clear instance where the ‘split the note’ theory has proven to be futile.”

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 11, 2014— MERSCORP Holdings, Inc. today announced that the Rhode Island Supreme Court ruled in favor of Mortgage Electronic Registration Systems, Inc. (MERS) affirming MERS’ role as mortgagee, including its authority to assign a mortgage.

In pdf Ingram v. Mortgage Electronic Registration Systems, Inc. (95 KB) , the plaintiffs appealed the Superior Court’s grant of summary judgment in favor of MERS and other defendants, alleging in part that the mortgage assignment from MERS to Deutsche Bank was void and therefore Deutsche Bank did not have the ability to foreclose on the property.

The Supreme Court, relying on its previous decisions in pdf Bucci v. Lehman Brothers Bank Bucci v. Lehman Brothers Bank (54 KB)  and pdf Mruk v. Mortgage Electronic Registration Systems, Inc. Mruk v. Mortgage Electronic Registration Systems, Inc. (56 KB) , wrote that “a mortgage, which was identical to the mortgage in this case, ‘explicitly granted the power of sale to MERS and its successors and assigns.’ We concluded that the assignee of MERS ‘acquired all the rights which MERS possessed’ and therefore possessed ‘the right to exercise the power of sale’” (emphasis in original). Ultimately, the Court rejected the plaintiffs’ arguments and found that “Deutsche Bank acquired all the rights which MERS possessed, including the right to exercise the power of sale.”

“The Court’s ruling is consistent with previous decisions upholding MERS’ role as mortgagee and validating its authority to assign mortgages it holds,” 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.

FOR IMMEDIATE RELEASE

CONTACT: Sandra Troutman
Phone: 703-761-1274
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Reston, Virginia, July 1, 2014—MERSCORP Holdings, Inc. today announced the United States Court of Appeals for the Ninth Circuit affirmed a Washington federal court’s ruling that dismissed the plaintiffs’ Washington Consumer Protection Act (CPA) claims along with other claims alleged in a wrongful foreclosure complaint against MERS and its co-defendants.

In pdf Mickelson v. Chase Home Finance LLC (157 KB) , the plaintiffs sought to invalidate a completed foreclosure sale by alleging CPA claims against MERS as well as Deed of Trust Act (DTA) violations against the foreclosing trustee, Northwest Trustee Services, Inc. (NWTS). Under the DTA allegations, the plaintiffs allege the Trustee breached its duty of care and impartiality because the MERS signing officer who executed the assignment of the deed of trust to the foreclosing servicer and note-holder, Chase Home Finance LLC, was also an employee of NWTS. The plaintiffs claimed that the relationship between NWTS, MERS and Chase Home Finance LLC disqualified NWTS from serving as the trustee.

In its ruling, the Court held that “Although recent amendments to the DTA have lessened the duty of care a trustee owes the parties to a non-judicial foreclosure, NWTS’s signing agreement with MERS and its limited power of attorney for Chase Home Finance LLC (“Chase”) do not breach even the more rigorous pre-amendment standard. Those agreements did not compromise NWTS’s capacity to exercise its discretion as trustee.”

As for the CPA claims, the Court found that the plaintiffs “… do not plausibly allege that any of those defendants cause them any injury, which is required to prove a CPA claim.”

“We are pleased that the court found that the MERS signing officer’s role with the trustee does not breach the duty of care standards expressed under Washington law,” 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.

    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.

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Click here to proceed.

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