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 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, May 6, 2014—MERSCORP Holdings, Inc. today announced the United States District Court for the District of Montana Missoula Division adopted in full the findings and recommendations by United States Magistrate Judge Jeremiah C. Lynch, confirming Mortgage Electronic Registration Systems, Inc.’s (MERS) authority as the nominee to act on behalf of the beneficiary.

In Whipple v. Mann Mortgage, LLC, et al., the borrower filed suit alleging, among other claims, that MERS lacks any interest or right under the Deed of Trust and does not have authority to serve in any capacity relative to the Deed of Trust. 

Magistrate Lynch held that MERS was legally and properly identified in the Deed of Trust as an agent on behalf of the beneficiary. The Court, while acknowledging that the Montana Supreme Court held in the  pdf Pilgeram (685 KB)  decision that MERS is not the beneficiary within the contemplation of Montana’s Small Tract Financing Act (STFA), concludes that, “Montana law, as applied under the provisions of the [Small Tract Financing Act], permits principals—e.g. beneficiaries and trustees—to delegate tasks to agents.” MERS clearly served as the agent.

Therefore, the Court holds that a lender is permitted to appoint MERS as its nominee in a STFA deed of trust and as its agent is “cloaked with authority to act on the lender’s behalf under the Deed of Trust.” The Deed of Trust by itself sufficiently established MERS’ agency under the STFA.

“This is the first decision to analyze MERS’ role as agent after the Montana Supreme Court’s decision in Pilgeram,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “The Court accordingly concluded that the Deed of Trust provided sufficient evidence of MERS’ agency.”

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.

 

 MERS has Right to Take Action as Beneficiary

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, April 3, 2014—MERSCORP Holdings, Inc. today announced that the Supreme Court of the State of Alaska affirmed the trial court’s decision validating MERS’ status as trust deed beneficiary and upholding the non-judicial foreclosure proceeding related to plaintiff’s property.

In pdf Espeland v. OneWest Bank (192 KB) , the plaintiffs’ cause of action seeking to void the trustee sale was based on several grounds, most notably that the MERS assignment of the trust deed to the foreclosing party, IndyMac Federal Bank, FSB (“IndyMac”) was invalid because MERS never held an interest in the underlying promissory note. The plaintiffs further alleged that IndyMac, the assignee of the MERS assignment, lacked the authority to appoint the successor trustee who conducted the foreclosure sale.

In affirming the trial court’s decision the Supreme Court found no defects in the chain of title which would have prevented the successor trustee from conducting the non-judicial foreclosure. Quoting directly from the subject MERS deed of trust, the Supreme Court found that the deed of trust granted MERS “the right to take any action of [the] Lender. Accordingly, the Court ruled that MERS “had the power to assign the Deed of Trust” and thereby transfer its interest to IndyMac.

“The Supreme Court of the State of Alaska affirms that MERS, as trust deed beneficiary possesses the power to assign the deed of trust and the authority to take any action the actual lender could have taken,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “And further,” she said, “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 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, March 31, 2014—MERSCORP Holdings, Inc. today announced that the U.S. District Court for the District of Rhode Island affirms validity of a MERS assignment of mortgage and finds the mortgagor lacks standing to challenge the validity of the assignment because his allegations, at best, simply allege voidable defects.

In pdf Robert W. Clark v. Mortgage Electronic Registration Systems, Inc. et al. (981 KB) , the plaintiff claimed that Bayview did not have standing to foreclose on his mortgage because the mortgage assignment from MERS to Bayview was void.  Further, he argued that MERS could not assign the mortgage because the signatory to the assignment lacked authority to do so and MERS did not hold both the mortgage and note at the time of assignment.

The Court rejected Clark’s claims as to the signatory’s supposed lack of authority from MERS.  “The assignment clearly identifies MERS as the assignor and that [the MERS signatory] signed the assignment as an Assistant Secretary.  … Moreover, Mr. Clark has no standing to seek redress for an assignment allegedly made without authority because [the signatory’s] act of signing the assignment, if outside of his authority, is merely voidable and would be actionable by MERS, not by Mr. Clark. [Internal cit. omitted.]”

“The ruling by the Court affirms that MERS, as mortgagee, is the holder of legal title to the mortgage with the authority to make assignments and courts will continue to find the MERS assignments valid,” 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.

 Court affirms Priority of Mortgage naming MERS as Mortgagee

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, March 18, 2014—MERSCORP Holdings, Inc. today announced that the Commonwealth of Massachusetts Appeals Court affirmed the lower court’s ruling that the mortgage naming Mortgage Electronic Registration Systems, Inc. (MERS) as the mortgagee has priority over the Plaintiff’s mortgage which was recorded after the MERS mortgage because the Plaintiff failed as a matter of law to establish that any exception to the “first in time is first in right” rule applies when MERS is the mortgagee.

In Brian Pehl v. BAC Home Loan Servicing, LP, et al, the plaintiff argued the first mortgage was void because a mortgage cannot be separated from the promissory note it secures. The plaintiff claimed that MERS did not hold the note secured by the first mortgage and further claimed that his second mortgage was superior to the first.

In its order, the Court said, “This assertion is unsupported by law,” and stated that “a mortgage and the underlying note ‘can be split,’ although the mortgagee must hold both the mortgage and the note prior to the commencement of the foreclosure.” See the Massachusetts Supreme Court decision in pdf Eaton v. Federal Natl. Mort. Assn. (596 KB)  In addition, citing to U.S. Bank Natl. Assn. v. Ibanez, the Court noted, “[w]here the mortgage and the note are held separately, the holder of the mortgage holds the mortgage in trust for the purchaser of the note.”

The plaintiff also argued that the MERS assignment was invalid. The Court held that the Plaintiff did not having standing to challenge the assignment and cited to Eaton in which the Massachusetts Supreme Court acknowledged the procedures by which MERS makes assignments. “In any event,” the Court concluded, “even if MERS’s assignment to BANA were invalid, it would not affect the relative priority of the first mortgage and the second mortgage; the second mortgage would remain subordinate to the first mortgage, with MERS retaining title to the latter instrument.”

“The validity of the role MERS played as mortgagee was never in question under Massachusetts statutes, as existing case law supports MERS’s role,” said Janis L. Smith, MERSCORP Holdings Vice President of Corporate Communications. “The decision in this case now becomes another supporting MERS as the mortgagee.”

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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