Court also finds recording assignments of the note is not required under law
FOR IMMEDIATE RELEASE
CONTACT: Jason Lobo
Reston, Virginia, June 14, 2012—MERSCORP Holdings, Inc. today announced a decision from the U.S. District Court for Oregon, Portland Division, upholding the role of Mortgage Electronic Registration Systems, Inc. (MERS) as beneficiary under the Oregon Trust Deed Act (OTDA).
By final judgment entered on June 7, 2012, in Moreno v. Bank of America, U.S. District Court Judge Marco A. Hernandez dismissed the borrower’s wrongful foreclosure lawsuit and reaffirmed the conclusions he reached in previous cases in which he ruled that MERS is a valid trust deed beneficiary according to Oregon law.
In his April 27, 2012, Opinion and Order, Judge Hernandez ruled plaintiff’s first claim for relief alleging the subject MERS Deed of Trust violated the OTDA because MERS is the named Beneficiary in the Deed of Trust but not the lender failed to state a cause of action against MERS or the other defendants. He cited his earlier decision in Richard v. Deutsche Bank Nat. Trust. Co. ruling that the language in plaintiff’s Deed of Trust explicitly authorized MERS to act as beneficiary and therefore “MERS as a beneficiary in a DOT does not violate the OTDA.”
Next, Judge Hernandez addressed and rejected the plaintiff’s argument that the OTDA requires the recording of a trust deed assignment when the underlying note is transferred before a non-judicial foreclosure can take place. Judge Hernandez, in support of his findings, cited Judge Anna Brown’s Order in Stolz v. Onewest Bank and Magistrate Judge Janice Stewart’s Findings and Recommendation in James v. Recontrust. “At least two judges in this District have rejected the argument that assignments of the underlying note must be recorded before a non-judicial foreclosure may commence,” Judge Hernandez wrote. “I join those judges who have concluded that unrecorded transfers of the note do not violate O.R.S. 86.735(1).”
“Numerous judges in Oregon have affirmed MERS’s role as trust deed beneficiary in accordance with Oregon law,” said Janis L. Smith, MERSCORP Holdings Vice President of Corporate Communications.
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.