Court of Appeals for the Fifth Circuit Affirms District Court Judgment in MERS’ Favor

 MERS as Mortgagee Repeatedly Upheld Under Texas Law


CONTACT: Janis Smith
Phone: 703-738-0230
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Reston, Virginia, October 3, 2014—MERSCORP Holdings, Inc. today announced that the U.S. Court of Appeals for the Fifth Circuit affirmed a District Court judgment on the pleadings, dismissing the borrower-plaintiffs’ complaint in Van Duzer v. U.S. Bank, N.A., MERSCORP Holdings, MERS, et al., No. 14-20122 (5th Cir., Sep. 9, 2014). 

Plaintiffs in  pdf Van Duzer v. U.S. Bank, N.A. , alleged causes of action related to the origination, subsequent assignment, and attempted foreclosure of a home equity loan.

In upholding the validity of the MERS assignment of the mortgage to the foreclosing entity, the Court of Appeals cited its previous ruling in  pdf Martins v. BAC Home Loans Servicing (102 KB)  F.3d 249, 255 (5th Cir. 2013), stating, “MERS ‘qualifies as a mortgagee’ under Texas law, and we have repeatedly upheld MERS’ assignment of mortgages to other entities.”

Aside from challenging the validity of the assignment to U.S. Bank, the complaint alleged fifteen additional causes of action. The appellate court upheld the district court’s dismissal of these claims, noting, “These counts largely consist of baseless attacks on the MERS system, which has been upheld in this circuit on numerous occasions, as noted.”

“We are most pleased that the Fifth Circuit has ruled many times that MERS qualifies as mortgagee under Texas law and has repeatedly upheld MERS assignments,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith.

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.