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FOR IMMEDIATE RELEASE

CONTACT: Janis Smith
Phone: 703-738-0230
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Reston, Virginia, September 2, 2014—MERSCORP Holdings, Inc. today announced that the Superior Court of Pennsylvania affirmed the trial court’s granting of summary judgment in favor of the foreclosing mortgage holder and rejected the appellant’s wrongful foreclosure claims

In pdf Bank of America v. Gibson (114 KB) , the appellant mortgagor argued that MERS lacked the authority to assign the mortgage and that Bank of America did not hold the note securing the mortgage. The trial court entered summary judgment in favor of the mortgage holder, which the Superior Court affirmed.

The Superior Court rejected the appellant’s argument that MERS lacked the authority to assign the mortgage, finding that the mortgage expressly granted MERS the right to exercise all of the lender’s interests. In the Court’s memorandum, Judge Victor P. Stabile wrote, “Appellant’s mortgage granted MERS the right to exercise ‘any and all’ interests incidental to legal title. Those rights include the ability to assign the mortgage.”

Additionally, the Superior Court determined that the record in this case clearly demonstrates that Bank of America held the note, negating the appellant’s second argument.

“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 Issues Three Favorable Rulings Citing No Break in Chain of Title

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 27, 2014—MERSCORP Holdings, Inc. today announced that the United States District Court for the District of Minnesota issued rulings in three cases that are favorable to Mortgage Electronic Registration Systems, Inc. (MERS). The court held that the foreclosing entities who were the named defendants in the cases established unbroken chains of title under Minnesota law by producing mortgages in which MERS was named the original mortgagee and subsequent assignments by MERS to the foreclosing entities. The plaintiffs lacked standing to challenge the assignments by MERS and, based upon the unbroken chains of title, the foreclosures were proper.

Each of the cases, pdf Smith v. Bank of America, N.A.  [Civil No. No. 13-2769(STN/JSM], pdf Her v. Wells Fargo Bank, N.A.  [Civil No. 13-2688 (DWF/JSM], and  pdf Jaakola v. The Bank of N.Y. Mellon (150 KB)  [Civil No. 13-2919(DSD/JSM], included a request for an order quieting title in the names of the plaintiffs.

In her Report and Recommendations, Magistrate Judge Janie Mayeron determined that the quiet title counts failed for several reasons. The record in each case showed “an unbroken chain of title through a recorded assignment of mortgage from MERS to [the foreclosing party].” Jaakola [Civil No. 13-2919(DSD/JSM]. Magistrate Mayeron held that because the chain of title was clear, there were no missing assignments, as the borrowers alleged, and the foreclosures were proper. Also, relying on precedent from this court and the Minnesota Court of Appeals, Magistrate Mayeron, referring to Pooling and Service Agreements (PSA), held that “documents governing mortgage-backed trusts often do not require a chain of written mortgage assignments when, as here, MERS is named the nominee of the lender and is listed as the Mortgagee.” Jaakola [Civil No. 13-2919(DSD/JSM)].

Magistrate Mayeron also held that the plaintiffs lacked standing to pursue their quiet titles claim because they suffered no injury as a result of the assignments by MERS or the application of trust terms to their mortgages.

The U.S. District Court for the District of Minnesota adopted Magistrate Mayeron’s Report and Recommendation in the Smith case on July 7, 2014 (J. Susan Richard Nelson), in the Her case on July 21, 2014 (J. Donovan W. Frank), and in the Jaakola case on August 15, 2014 (J. David S. Doty).

“These favorable rulings continue to support the acceptance under Minnesota law that an assignment by MERS is effective in Minnesota and that there is no break in title when MERS is named as original mortgagee and later assigns its interest,” 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.

 

 

Affirms MERS Authority to Assign Mortgage 

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 19, 2014—MERSCORP Holdings, Inc. today announced the U.S. Court of Appeals for the Fifth Circuit relied upon its precedent in prior rulings that MERS has the authority to assign the mortgage lien as its basis for affirming the dismissal of a wrongful foreclosure lawsuit.

In pdf Reese v U.S. Bank Natl Assn , the plaintiff appealed the dismissal of his wrongful foreclosure suit, claiming, among other things, that the recorded security instrument “constituted a fraudulent claim against real property because MERS never acquired a security interest in the mortgage properties, and therefore, the recording denominating MERS as a beneficiary of the security instruments are fraudulent.” The plaintiff went on to allege that the bank lacked standing when it foreclosed on his property because MERS lacked the ability to assign the Deed of Trust.

The Fifth Circuit Court based part of its opinion on its previous ruling in pdf Golden v Wells Fargo Bank , finding that the plaintiff failed to state a claim under the fraudulent lien statute (§12.002 of the Texas Civil Practice & Remedies Code) by failing to plead facts sufficient to show that the Bank intended to cause injury by its use of an assignment.

Further, the standing claim was precluded by Fifth Circuit precedent, “Our Court has expressly recognized that MERS may assign a deed of trust to a third party and that such assignments confer the new assignee standing to non-judicially foreclose on property associated with that particular deed of trust.” See  pdf Martins v. BAC Home Loans Servicing (102 KB) .

“We are pleased with this decision 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.

 

 

Wrongful Foreclosure Claim Dismissed

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 18, 2014—MERSCORP Holdings, Inc. today announced that the U.S. District Court for the District of Wyoming dismissed without prejudice the plaintiffs’ wrongful foreclosure claims.

In pdf Wobig v. Bank of America, N.A. , the plaintiffs filed wrongful foreclosure and quiet title claims based on allegations that the MERS assignment was unauthorized and the product of forgery, as well as other claims.

In her opinion, Chief United States District Judge Nancy D. Freudenthal, addressing the allegation that the MERS assignment is void because at the time of the assignment the original lender, Solstice, was defunct or inactive stated, “Defendant MERS has the ability to assign its interest in the mortgage at any time because it was the mortgagee for the loan since the loan originated.”

“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.

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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