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State Law is not Violated

FOR IMMEDIATE RELEASE

CONTACT: Janis Smith
Phone: 703-738-0230
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Reston, Virginia, January 7, 2014— MERSCORP Holdings, Inc. today announced that the Idaho Supreme Court affirmed the District Court of the Fourth Judicial District judgment that MERS is a valid beneficiary.

In pdf Renshaw vs. Mortgage Electronic Registration Systems, Inc. , the borrower contended that MERS could not be a beneficiary because it was not owed any money under the promissory note. The Idaho Supreme Court had previously ruled in pdf Edwards v. Mortgage Electronic Registration Systems, Inc. (62 KB)  that “[H]aving MERS the named beneficiary as nominee for the lender conforms to the requirements of a deed of trust under Idaho law.”

The borrower argued that this case was distinguishable from Edwards because here the promissory note was assigned several times. In his opinion, Justice Daniel T. Eismann, joined by Chief Justice Roger S. Burdick, Justices Jim Jones and Joel D. Horton and Pro Tem Gerald Schroeder, stated that a transfer of a promissory note “does not alter the right of the new holder of the note to have MERS be the named beneficiary as the nominee of the new holder.” Further, Justice Eismann pointed out that MERS did not violate Idaho Code § 45-1505(1) and stated, “When Homecomings transferred its interest in the promissory note, it also transferred its interest in the deed of trust to the assignee of the note. When that occurred, there is no need to change the name of the beneficiary in the deed of trust as long as the new holder of the note agreed that MERS could act as its nominee. … Under the facts of this case, no assignment of the deed of trust was necessary.”

“The highest Court in Idaho has ruled once again that MERS is a valid beneficiary,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “This is consistent with past Idaho court decisions that have upheld MERS’ role and authority and it validates MERS’ role as trust deed beneficiary under Idaho law.”

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.

 September 2012 Dismissal of Recording Fee Case Stands

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, January 2, 2014 —MERSCORP Holdings, Inc. today announced that the United States Court of Appeals for the Eighth Circuit Court ruled on December 31st in pdf Mayme Brown v. Mortgage Electronic Registration Systems, Inc, (MERS) et al (132 KB) , affirming the U.S. District Court’s dismissing all of the Clerk’s claims against MERS finding that because Arkansas does not impose any requirements to record documents, MERS did nothing wrong and it did not avoid paying recording fees for mortgage assignments. The Circuit Court also affirmed dismissal of the unjust enrichment claims, finding that “without a duty to record, however, the Lenders have retained nothing of value to which they are not entitled, and there is nothing they could be required to restore to the County.”

The Circuit Court found that Brown’s illegal-exaction claim was a class action under the Class Action Fairness Act of 2005 (CAFA) being alleged by all Arkansas taxpayers, and that as the Clerk of the Court, Brown was not a “taxpayer” who could bring this action.

In the District Court, Judge Susan O. Hickey, in September of 2012, dismissed the class action suit filed on behalf of Hot Spring County and all of the circuit clerks in Arkansas. Citing long-standing Arkansas law, Judge Hickey held that “Arkansas’s statutes ‘do not require assignments to be recorded.’ In fact, existing law is to the contrary.” She further described the original intent behind mortgage land recording: “The purpose of recording is simply to give constructive notice to subsequent purchasers.” Judge Hickey also dismissed the notion that counties are unjustly deprived of recording fees. “Because they had no duty to record their mortgages,” Judge Hickey wrote, “Defendants have not deprived Plaintiff or her proposed class of anything to which they are entitled.”

The Eighth Circuit Court of Appeals affirmed the District Court’s decision in its entirety, and held, “We agree with the district court’s thorough analysis of Arkansas law, and we hold that dismissal of the state law claims was appropriate.” The Circuit Court also said, “it was both fair to the parties and a proper application of comity for the district court to decide the issue. The causes of action are not novel, and there is little basis for dispute as to the resolution of Brown’s state law claims as they involved well-understood and settled principles of Arkansas Law.”

“This is an excellent decision for MERS, as it puts this case to rest by emphasizing that MERS’ role as mortgagee and lenders’ use of the MERS® System is legal under Arkansas law and consistent with the purpose of the state’s recording statute,” said Janis L. Smith, MERSCORP Holdings Vice President of Corporate Communications.

MERS has prevailed in similar lawsuits brought by county recorders in Minnesota, North Carolina, Rhode Island, Michigan, Oklahoma, Iowa, Florida, Arkansas, Illinois, Missouri, Massachusetts and Kentucky.

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 about 3,000 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.

  • 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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    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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