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FOR IMMEDIATE RELEASE

CONTACT: Janis Smith
Phone: (703) 738-0230
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The United States Supreme Court has denied the review of Welborn, Doug et.al, v. Bank of New York Mellon, et. al., No. 13-1449 and the 5th Circuit Court of Appeals’ dismissal of the case will stand. We agree with the 5th Circuit’s finding that “[T]he recordings systems were not created to serve a revenue-generating function for the states,” and, that the recordings systems “... serve a governmental function,” which the Court notes is based on a public policy of providing notice of title. We believe that use of Mortgage Electronic Registration Systems, Inc. (MERS) as the recorded mortgagee is consistent with this purpose.

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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 as Mortgagee Repeatedly Upheld Under Texas Law

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 3, 2014—MERSCORP Holdings, Inc. today announced that the U.S. Court of Appeals for the Fifth Circuit affirmed a District Court judgment on the pleadings, dismissing the borrower-plaintiffs’ complaint in Van Duzer v. U.S. Bank, N.A., MERSCORP Holdings, MERS, et al., No. 14-20122 (5th Cir., Sep. 9, 2014). 

Plaintiffs in  pdf Van Duzer v. U.S. Bank, N.A. , alleged causes of action related to the origination, subsequent assignment, and attempted foreclosure of a home equity loan.

In upholding the validity of the MERS assignment of the mortgage to the foreclosing entity, the Court of Appeals cited its previous ruling in  pdf Martins v. BAC Home Loans Servicing (102 KB)  F.3d 249, 255 (5th Cir. 2013), stating, “MERS ‘qualifies as a mortgagee’ under Texas law, and we have repeatedly upheld MERS’ assignment of mortgages to other entities.”

Aside from challenging the validity of the assignment to U.S. Bank, the complaint alleged fifteen additional causes of action. The appellate court upheld the district court’s dismissal of these claims, noting, “These counts largely consist of baseless attacks on the MERS system, which has been upheld in this circuit on numerous occasions, as noted.”

“We are most pleased that the Fifth Circuit has ruled many times that MERS qualifies as mortgagee under Texas law and has repeatedly upheld MERS assignments,” 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.

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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.

 

 

 Rhode Island Courts, both state and federal, Rule that MERS May Hold and Assign Mortgage Interests

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 2, 2014—MERSCORP Holdings, Inc. today announced that the Supreme Court of Rhode Island dismissed a series of appeals seeking to overturn trial court judgments in favor of MERS and other defendants on claims that MERS could not hold or assign mortgage interests under Rhode Island State law. The appeals each related to the legality of mortgage interests and promissory notes being held by separate entities.

The Supreme Court opined on these issues in previous cases and relied on its prior rulings in pdf Ingram v. Mortgage Elec. Reg. Sys., Inc. (95 KB)  and  pdf Bucci v. Lehman Bros. Bank, FSB (54 KB)  to restate, “[i]t is well settled that MERS may serve as mortgagee without holding the promissory note and has the authority under the terms of the mortgage … to assign it.” See  pdf O’Leary v. Mortgage Electronic Registration Systems, Inc. (37 KB)

In addition to O’Leary, the Rhode Island Supreme Court also dismissed pdf Casimiro v. Mortgage Electronic Registration Systems, Inc. (56 KB) ; pdf Dennis v. Quicken Loans, Inc. (57 KB) ; pdf Moura v. OneWest Bank, FSB (57 KB) ; and,  pdf Woodruff v. Mortgage Electronic Registration Systems, Inc. (37 KB)

Also, in Rhode Island, the federal District Court for the District of Rhode Island found in MERS’ favor in pdf Alves v. Mortgage Electronic Reg. Sys., Inc. (385 KB)  The court rejected the argument that the MERS assignment was void because MERS did not have the note, finding the plaintiff lacked standing to challenge an assignment because the assignment allegations were merely voidable—not void—allegations. Additionally, the Court pointed to previous Rhode Island Supreme Court Decisions in Bucci and pdf Moura v. Mortgage Electronic Registration Systems, Inc. (57 KB)  and noted that these Decisions “validated the MERS System and MERS’ role as nominee on behalf of the note owner.”

“We are most pleased that Courts in Rhode Island continue to uphold MERS’ rights to serve as mortgagee,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “These rulings are generally consistent with case law throughout the country.”

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.

 

 

Judges strike down “debt collection agency” 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, September 22, 2014—MERSCORP Holdings, Inc. today announced that the First Judicial District Appellate Court of Illinois and the Circuit Court for the Nineteenth Judicial Circuit issued rulings dismissing borrowers’ claims that Mortgage Electronic Registration Systems, Inc. (MERS) was operating as an “unregistered debt collection agency.”

In pdf Deutsche Bank v. Cichosz (31 KB) , Presiding Justice Nathaniel R. Howse and Justices Terrence J. Lavin and James Fitzgerald Smith affirmed a lower court’s decision to grant summary judgment to Deutsche Bank. MERS filed the lawsuit in 2009 and later that year Deutsche Bank was substituted in as the plaintiff in place of MERS. The defendants alleged that MERS was operating as an unregistered “debt collection agency” under the Illinois Collection Agency Act (ICAA) when it filed the lawsuit in 2009, which rendered Deutsche Bank’s foreclosure judgment void.

The Court found that the “defendants have demonstrably failed to set forth sufficient facts to establish MERS is subject to the Act … ” and that the “[d]efendants raise no explanation as to why MERS’s alleged activities as an unlicensed debt collector would render all subsequent pleadings, even those relating to a new plaintiff licensed under the Act, a nullity.”

Similarly, in pdf Mortgage Electronic Registration Systems, Inc. v. DeGuzman (97 KB) , the Court dismissed, with prejudice, the defendant’s third amended petition to vacate a foreclosure judgment based on the theory that MERS violated the ICAA. The defendant, as in Deutsche Bank, also alleged that MERS was acting without being licensed as a debt collector under the Act.

In granting MERS’ motion to dismiss, the Court held that “[t]here are no allegations in the record, even if taken as true, that would establish MERS is a collection agency or a debt collector under the Illinois Collection Agency Act.”

“These recent decisions from Illinois courts continue to support that MERS operates within the law and that theories that try to show otherwise will continue to fail in the courtroom,” 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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