FOR IMMEDIATE RELEASE
CONTACT: Jason Lobo
Reston, Virginia, May 21, 2012—MERSCORP Holdings, Inc. today announced that two Oregon courts recently affirmed MERS’ role as beneficiary under the Oregon Trust Deed Act (OTDA) and dismissed plaintiffs’ attempts to forestall valid foreclosures in Oregon.
In his May 15, 2012, ruling in Whitmore v. Recontrust Company, U.S. District Court Judge Michael W. Mosman 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 and ruled that the OTDA does not require presentment of the promissory note to foreclose.
In Whitmore, Judge Mosman ruled “[b]ecause plaintiff’s first claim, second claim, and part of his third claim are based on the premise that MERS is not a valid ‘beneficiary’ under the OTDA and/or that defendants must record assignments of the promissory note, I dismiss these claims for failure to state a claim.” Judge Mosman dismissed the complaint with prejudice.
In a separate state court decision, the Circuit Court of Oregon for Benton County also affirmed MERS’ role as beneficiary. Judge Locke A. Williams found no requirement to record trust deed assignments each time the underlying note is transferred. In his May 7, 2012, ruling in Jorgenson v. Bank of New York Mellon, et al, Judge Williams dismissed the complaint, writing: “MERS is a proper beneficiary under the original deed of trust” and “that it is not necessary to record the assignments of notes.”
“We are pleased that Oregon courts continue to affirm MERS’ role under the Oregon Trust Deed Act,” said Janis L. Smith, MERSCORP Holdings Vice President of Corporate Communications. “As we’ve defended the legality of MERS’ business model in Oregon and other states, its role in U.S. mortgage finance has become better understood.”
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.