MERSCORP Holdings, Inc. May 2013 News Summary


Reston, Virginia – June 4, 2013 – (RealEstateRama) — Below is a monthly summary of major legal decisions involving either the use of the MERS® System database or Mortgage Electronic Registration Systems, Inc. (MERS) and its role in the mortgage process. Please feel free to contact the ">Communications Office at MERSCORP Holdings, Inc. with any questions and visit the MERS Newsroomfor a full list of news releases.

Major Developments


  • Alabama Supreme Court Upholds Lower Court’s Recognition of MERS’ Authority to Assign Mortgages
    “The trial court denied the borrowers’ request; affirmed Fannie Mae’s standing to bring the ejectment action and the judgment in favor of Fannie Mae. The trial court found that the borrowers’ claim regarding MERS’ lack of authority to assign the mortgage as ‘being contrary to Alabama law’ because ‘[t]he ability of MERS to assign a mortgage or take other actions as the nominee for a lender and that lender’s assigns in a mortgage has been affirmed in Alabama.’ ”


  • MERS Wins Important Property Tax Foreclosure Case in Arizona
    “The Court of Appeals found that the deed of trust ‘not only expressly identifies MERS as the nominee for the lender, but also beneficiary, and the holder of legal title to the Property.’ The Court found that Delo should have provided notice of the tax lien foreclosure lawsuit to MERS because MERS’ interest in the property was acquired before Delo had acquired his interest.”


  • MERS Prevails in Michigan Federal Court Transfer Tax Suit
    “Despite the County Registers’ lack of standing, Judge Bell commented sternly on their arguments, saying, ‘Plaintiffs’ complaint and briefs make inaccurate statements of the law under the CRETTA and allege far-fetched theories of liability…the Court will not allow Plaintiffs to continue ‘fishing’…when transfer taxes are indisputably not owed…’ ”

New Hampshire

  • New Hampshire Superior Court Rules in MERS’ favor
    “In Bennett v. MERS, Justice Tucker, citing the U.S. Court of Appeals for the First Circuit’s ruling in Culhane v. Aurora Loans Services, held that ‘[t]he fact that the Note has been transferred does not affect MERS’s status as mortgagee, since it operates under a system in which it remains as mortgagee if the note is sold by one MERS member to another.’ ”

New York

  • “Mass Action” Case against MERS Members Unsupported by Facts
    “In Abraham v. American Home Mortgage Servicing, Inc., et al., Judge Kuntz rejected a ‘mass action’ attempt by hundreds of borrowers, finding that they were joined improperly and that, more importantly, the bases for their complaint were ‘threadbare recitals’ and ‘conclusory statements’ unsupported by specific facts.”

North Carolina


  • MERS Model Prevails Again in the Fifth Circuit
    “ ‘Numerous district courts have addressed this question, and each one to analyze Texas law has concluded that Texas recognizes assignment of mortgages through MERS and its equivalents as valid and enforceable,’ Judge Smith wrote on behalf of the panel. The Court further held that Texas differentiates between enforcement of a note and foreclosure, with the latter enforcing a deed of trust, and can be accomplished without judicial supervision. Importantly, the Court noted that “the mortgage was assigned by MERS, which had been given such power, including the power to foreclose, by the deed of trust.’ ”


  • Washington Federal Court Ruling Favors MERS
    “ ‘The fact that MERS is listed as a beneficiary of the deed of trust is not relevant to the outcome of this case,’ Judge Rice wrote, ruling that since U.S. Bank was the holder of the plaintiff’s note and deed of trust, it had the authority to foreclose.”

Other Relevant Cases

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.

Jason Lobo
Phone: 703-652-1660

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