MERS’ Core Functions Unaffected by Oregon Supreme Court Rulings
Reston, Virginia – June 7, 2013 – (RealEstateRama) — We view today’s opinions from the Oregon State Supreme Court as consistent with Mortgage Electronic Registration Systems, Inc.’s (MERS) role and authority to act on behalf of lenders in Oregon. Ruling in Brandrup v. Recontrust Company, N.A and Niday v. GMAC Mortgage, LLC., the Court said, “if it can be shown that the original lenders and their successors conferred sufficient authority on MERS, to act on their behalves in the necessary respects, MERS may have the authority, as the true beneficiary’s agent, to hold and transfer interests in the trust deed.” We are confident that we have and can prove such authority.
The Court also held that Oregon’s nonjudicial foreclosure statute “does not require recordation of ‘assignments’ of the trust deed by operation of law that result from the transfer of the secured obligation.” These rulings will allow lenders to move forward with nonjudicial foreclosure proceedings in the state.
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.