MERSCORP Holdings, Inc. October 2012 News Summary

CONTACT: Jason Lobo
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Reston, Virginia, November 1, 2012—Below is a monthly summary of major legal decisions involving either the use of the MERS® System database or Mortgage Electronic Registration Systems, Inc. (MERS) and its role in the mortgage process. Please feel free to contact the MERSCORP Holdings, Inc. This email address is being protected from spambots. You need JavaScript enabled to view it. with any questions and visit the MERS Newsroom for a full list of news releases.

Major Developments


  • MERS Prevails Against Recording Fee Claim, October 31, 2012
    "Judge Guaderrama rejected Plaintiffs' claims and held that "[s]uch allegations of personal injury is too remote and simply piggy-backs on the direct injury, if any, to the counties."   Additionally, Judge Guaderrama agreed with MERS' positions on all counts and empathically ordered the Clerk of the Court to "CLOSE this case."

Notable State and Federal Court Decisions


  • MERS’ Role as Beneficiary Consistently Upheld by Federal Courts in Idaho, October 11, 2012
    "’The U.S. District Court for the District of Idaho, no stranger to these cases, has ruled definitively that MERS' role as beneficiary is in accordance with Idaho law,’ Janis Smith MERSCORP Holdings' vice president for Corporate Communications said. ‘The judges have been consistently clear that these claims are baseless.’"



  • Nevada Supreme Court Concludes MERS is “Proper Beneficiary,” October 1, 2012
    "'Justice James W. Hardesty wrote a detailed decision on behalf of the Court explaining that when MERS serves as the beneficiary of the deed of trust and a different entity holds the promissory note, this does not render either instrument void, and that once the foreclosing lender obtains an assignment from MERS and is the holder of the promissory note, the lender can proceed through the state's Foreclosure Mediation Program."

New York

  • New York Appellate Court Reverses Decision Involving MERS Mortgage Assignment, October 24, 2012
    “Justice Dillon held that BONY submitted “the mortgage, the note, the verified complaint setting forth the facts establishing a claim, and evidence of the mortgagor’s [borrower’s] default” to support its standing to foreclose and, therefore, the trial court should have granted the renewed motion for the appointment of a referee to conduct the foreclosure sale.”


  • Texas Supreme Court Refuses to Hear Challenge to MERS’ Role, October 30, 2012
    "In denying review, the Supreme Court let stand a January 5, 2012, Court of Appeals opinion ... [which] noted that "the deed of trust gives the lender as well as the beneficiary the right to invoke the power of sale...the assignment of MERS's status as beneficiary under the deed of trust on February 20, 2009, does not contradict MidFirst's evidence that it succeeded to the rights of the lender under the deed of trust..."

Other Relevant Cases

For descriptions of cases and other materials pertaining to MERS’ business model and role in U.S. housing, please visit 


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.