MERS racks up win in court case

by Adam Smith08 Nov 2013

MERS has been handed a win, as a North Carolina Federal judge dismissed a lawsuit against the mortgage registration company.

 U.S. District Court Judge Terrence W. Boyle of  the Eastern District of North Carolina has thrown out a lawsuit agains MERS, JPMorgan Chase Bank and other MERS System members that alleged several counts of "fraud by use of MERS". The suit alleged that MERS could neither be named beneficiary or nominee of a lender in the deed.

“The hidden purpose of MERS is to defraud borrowers and the clerks of court by hiding the true owners of secured interests on property in opposition to common law policies and the laws of North Carolina, and that all transfers of the Deed or the Note by MERS are void,” the plaintiff's suit claimed.

But Judge Boyle disagreed, saying that the Deed "unequivocally identifies MERS and its position".

"The plaintiff has failed to uncover any case finding that MERS violates North Carolina law whereas several other courts have held that MERS is lawful and accordingly has the authority to assign it rights under deeds of trust,” Boyle said in his ruling.

MERSCORP Holdings Vice President for Corporate Communications, Janis Smith, contended that previous cases had consistently found that MERS had authority to assign rights under deeds of trust.

“MERS has legal authority to act on behalf of the lender – including the right to execute the assignment or foreclose – and this authority is granted by plain language in the mortgage document signed at closing by the borrower,” Smith said.


  • by Bayview Mortgage Inc. | 11/8/2013 7:37:25 AM

    The attorney should have gone after the use of copies and not having to hold originals. These attorneys should employ mortgage companies for guidance.

  • by Wm Matz | 11/8/2013 4:02:09 PM

    This decision is wrong. Supreme Courts in Kansas, Nebraska, Arkansas, and Maine - at least - have declined to accept MERS claimed interest. Moreover, the summary fails to address the issue that none of the robo-signers for the various lenders have ever been legally appointed to act for MERS, as admitted in deposition by MERS VP. OR & WA are now requiring all transfers to be recorded to use non-judicial foreclosure.


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