Reston, Virginia, – November 18, 2013 – (RealEstateRama) — MERSCORP Holdings, Inc. announced that the Superior Court in the Commonwealth of Massachusetts dismissed three consolidated actions involving recording fee cases. Justice Janet L. Sanders dismissed lawsuits filed by Bristol County, Norfolk County and Plymouth County in Massachusetts, ruling in favor of MERSCORP Holdings, Inc., Mortgage Electronic Registration Systems, Inc. (MERS) and numerous other defendants.
In Bristol County vs. MERSCORP, Inc., et al., the plaintiffs alleged that the defendants have avoided paying a recording fee in connection with assignment from one MERS member to another. Rejecting the plaintiff’s claims, Justice Sanders wrote, “If the underlying note is assigned to another lender who is a member of the MERS system, MERS remains as the mortgagee, acting as nominee for the new note holder. … No recordation is necessary because there has been no change as to who holds legal title.” Citing to an opinion by the Massachusetts Supreme Court in the Eaton case, Justice Sanders continued her argument and further stated that “If the SJC [Supreme Judicial Court] had some doubt or concerns as to the legality of the MERS system, then surely it would have so indicated.”
“These cases are another example of county recorders seeking inappropriately to recover fees for recording services that were not required by state law or performed by the counties,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith.
This decision joins the dismissals of similar lawsuits brought by county recorders in Minnesota, North Carolina, Rhode Island, Michigan, Oklahoma, Iowa, Florida, Arkansas, Illinois, Missouri and Kentucky.
For descriptions of cases and other materials pertaining to MERS’ business model and role in U.S. housing, please visit www.mersinc.org.
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.
CONTACT: Janis Smith