FOR IMMEDIATE RELEASE
CONTACT: Jason Lobo
Reston, Virginia, June 5, 2012—MERSCORP Holdings, Inc. today announced that a federal judge in Oregon touted the beneficial role MERS plays in housing, while ruling again that the company may serve as beneficiary under Oregon law.
In his recent Opinion and Order in Hernandez v. BAC Home Loans Servicing, U.S. District Court Judge Michael W. Mosman dismissed all counts of the plaintiff’s complaint with prejudice, the majority of which were based upon the plaintiff’s theory that MERS is an invalid beneficiary.
“None of these claims are new to this court, and there is little room for original analysis,” Judge Mosman wrote. “MERS may serve as a beneficiary named in a trust deed. The essential reasoning is simple: Oregon law addresses the designation of a beneficiary, specifically, ‘beneficiary means the person name or otherwise designated in a trust deed as the person for whose benefit a trust deed is given.’”
Judge Mosman further noted that construing MERS as beneficiary “promotes efficiency and the public interest in the freedom of contract.” He also referred to his earlier opinion in Beyer v. Bank of America in which he affirmed MERS’ role as trust deed beneficiary in accordance with Oregon law.
“We are pleased that Oregon courts not only continue to affirm MERS’ role under the Oregon Trust Deed Act, but also are now acknowledging the beneficial role the company brings to U.S. housing,” said Janis L. Smith, MERSCORP Holdings Vice President of Corporate Communications.
For descriptions of cases and other materials pertaining to MERS’ role and business model 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 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.