“Split the Note” Theory Rejected in Oregon


MERS Deed of Trust Does Not Impact Non-Judicial Foreclosures

Reston, Virginia – April 8, 2013 – (RealEstateRama) — MERSCORP Holdings, Inc. today announced that a three-judge panel of the Oregon Court of Appeals affirmed a lower court ruling that rejected a borrower complaint seeking to stop the non-judicial foreclosure of his property.

In Hunt v. Aurora Loan Services, Court of Appeals Judges Erika L. Hadlock, Darleen Ortega and Timothy J. Sercombe affirmed a decision by Judge Stephen N. Tiktin of the Oregon Circuit Court for the County of Deschutes. In the underlying decision, Judge Tiktin held that plaintiff failed to prove defendants violated Oregon law.

“Apparently the main basis of the claim pleaded in the complaint is that the note has been securitized and separated from the deed of trust…” Judge Tiktin wrote. However, Judge Tiktin found that “plaintiff has not alleged that the circumstances required ORS 86.735 to non-judicially foreclose a trust deed have not been met [by the defendants] and plaintiff has not pointed to any provision of the non-judicial trust deed foreclosure statutes that requires the presentation of documents, including the note, to the debtor as a prerequisite of proceeding non-judicially.”

“The Court of Appeals’ affirmation of the lower court’s decision is consistent with the ruling in Niday v. GMAC Mortgage LLC because the Niday decision did not invalidate deeds of trust that identify MERS as beneficiary,” MERSCORP’s Director for Corporate Communications Jason Lobo said.

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.

Jason Lobo
Phone: 703.652.1660

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