Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

Arkansas court dismisses class action case against MERS

In another in a series of cases against MERS, an Arkansas judge has dismissed a class action case,again affirming MERS’ role in the chain of title.

zillow

mers

MERS records another win

MERSCORP Holdings, Inc. (MERS) racked up another win, with a judge in the Circuit Court of Lonoke County, Arkansas Civil Division ruling that MERS had no duty to record assignments in the state of Arkansas, dismissing the class action case without prejudice.

Circuit Court Judge Sandy Huckabee ruled that “Based on current Arkansas law, consistent with the decisions of the Arkansas Supreme Court, there is no duty to record assignments in the State of Arkansas.”

Judge Huckabee added, “Therefore, the Court finds that each claim in the Amended Class Action Complaint fails to plead a basis upon which relief can be granted.”

Other cases in MERS’ favor

A similar suit filed by the Circuit Clerk of Hot Spring County, Arkansas was dismissed as “Arkansas’s statutes ‘do not require assignments to be recorded.’”

Advertisement. Scroll to continue reading.

“We have consistently held that the MERS business model complies with the requirements of the recording statutes,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith.

This decision joins the dismissals of similar lawsuits brought by county recorders in Florida, Illinois, Iowa, Kentucky, Michigan, Minnesota, Missouri, North Carolina, Oklahoma, and Rhoda Island.

15 years of filing fees across the nation

MERS was initially established by Fannie Mae and Freddie Mac over 15 years ago in conjunction with several major banks as a means to expedite the loan recording process as it used to be done through individual county clerk offices which was slow. “The founders went ahead even though no state laws authorized them to bypass the required filing with clerks,” according to Reuters.

Economist Barry Ritholtz said, “The politics of this are quite fascinating: The bankers may own the corrupt US Congress, and they may have intimidated or bought off many of the more cowardly State Attorneys General, but there simply are too many counties and District Attorneys representing local interests throughout the country to all be bought off. Buying/intimidating/controlling all of the local country District Attorneys may be like herding cats — nearly impossible. I am going to stand by my original prediction: The early litigants may get something, but the latter lawsuits will likely result in bankrupting MERS.”

But what has happened? More and more judges are ruling that MERS’ role in the chain of title, more commonly ruling in MERS’ favor, dismissing cases left and right.

Advertisement. Scroll to continue reading.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Housing News

In yet another court, the role of MERS in the chain of title has been affirmed, and despite heated criticism, they're racking up more...

Housing News

MERS gets a big win as the Rhode Island Superior Court affirms their authority, calling the issue "conclusively resolved," citing the Supreme Court ruling.

Housing News

MERS has been the target of many homeowners claiming MERS' role in their foreclosure was invalid, but judges are more frequently ruling against plaintiffs...

Housing News

MERS, once blamed for the entire housing crash, is now being affirmed by judges - could more courts and more states rule in favor...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.