MERS Wins Complete Dismissal of Texas Lawsuit Filed by Counties


CONTACT: Janis Smith
Phone: 703-738-0230
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Reston, Virginia, March 5, 2014—MERSCORP Holdings, Inc. today announced that the United States District Court for the Northern District of Texas, Dallas Division, yesterday granted MERSCORP Holdings, Inc. motion for summary judgment of the final remaining claim in a recording fee case filed by Dallas, Harris and Brazoria Counties, Texas.

In pdf Dallas County, Texas, et. al.; v. MERSCORP Inc., et. al. (146 KB) , the counties claimed that MERS created a private electronic mortgage registration system for tracking ownership interest and servicing rights associated with residential mortgages, ultimately depriving the Counties of recording fees and corrupting their real property records and that Texas Statute, section 192.007 requires all assignments of Deeds of Trust be recorded in the land records.

United States District Judge Reed O’Conner in his opinion said, “This statute contains no remedy provision, and nothing stating or suggesting that a county or other litigant may seek relief under the statute.” Judge Reed continued, “Alternatively, even were declaratory relief available to the Counties, based on recent case law, the Court concludes that Section 192.007 does not support the Counties’ interpretation that the statute requires the recordation of interim instruments, such as assignments of deeds of trusts.”

“We have been confident since this case began that the lawsuit filed in Dallas County was without legal or factual merit,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “The MERS business practices are legal and comply with the recording statutes and regulations of Texas. Judge Reed’s opinion mirrors rulings in numerous cases in Texas courts and countless cases across the country on the state and federal level.”

This decision joins the dismissals of lawsuits brought by county recorders in Minnesota, North Carolina, Rhode Island, Michigan, Oklahoma, Iowa, Florida, Arkansas, Illinois, Missouri, Massachusetts and Kentucky.

For descriptions of cases and other materials pertaining to MERS’ business 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.