Court affirms two District Court findings that MERS assignments were valid
FOR IMMEDIATE RELEASE
Reston, Virginia, March 1, 2012—MERSCORP Holdings, Inc. today announced that the Nevada Supreme Court affirmed two separate district court rulings that rejected challenges to the validity of Mortgage Electronic Registration Systems, Inc.’s (MERS) role in assigning interests in deeds of trust.
“The Nevada Supreme Court has made it unquestionably clear that the MERS business model complies with Nevada law,” said MERSCORP Holdings Vice President of Corporate Communications, Janis L. Smith. “These rulings – as in all other states – reject claims challenging our legitimate role in U.S. housing.”
In Volkes v. BAC Home Loans Servicing and U.S. Bank v. Davis, the Nevada Supreme Court affirmed the orders of District Judge Patrick Flanagan who had granted foreclosure certificates after rejecting challenges to MERS-generated assignments. In each of these two rulings, the seven members of the Nevada Supreme Court signed Orders of Affirmance upholding the District Court rulings. Citing previous rulings across the country, the Court noted that: “Several have even confirmed MERS’ legitimacy with respect to the precise issue presented here: whether MERS, acting as a lender’s nominee, can assign the lender’s ownership of a note to another entity.”
“MERS® System registration eliminates breaks in the chain of title, resulting in fewer costs incurred by the lender or servicer – costs that would ultimately be passed down to the homeowner,” added Smith. “MERS’ role is disclosed to borrowers in plain language in the deed of trust they sign at closing, and they also have free access to their servicer and investor information on MERS’ website or by toll-free number.”
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.