Montana Court: “Law Permits MERS to Act as Nominee for the Lender”


State Court Judge Finds Plaintiffs’ Claims Fail as a Matter of Law

Reston, Virginia – April 9, 2013 – (RealEstateRama) — MERSCORP Holdings, Inc. today announced that Judge John C. Brown of the Montana 18th Judicial District Court ruled in favor of Mortgage Electronic Registration Systems, Inc. (MERS) and other defendants, rejecting a multi-count wrongful foreclosure complaint.

In McCarthy v. Capitol Commerce Mortgage Co., Judge Brown denied Plaintiffs’ assertions that MERS cannot act as a deed of trust beneficiary under Montana law.

“…[N]umerous Montana trial courts have consistently upheld MERS’ legal capacity to exercise the rights granted to it by borrowers in a deed of trust, consistent with the findings of other courts around the nation,” Judge Brown wrote. “Montana law permits MERS to act as nominee for the lender in exercising the rights of a beneficiary under § 71-1-303, MCA, as the Deed of Trust expressly provides in this case.”

“Judge Brown’s ruling mirrors others across Montana,” MERSCORP Holdings’ Director for Corporate Communications Jason Lobo said. “MERS’ authority as beneficiary to assign its interests in the deed of trust is plainly written, and borrowers agree to this language when signing at closing.”

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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