Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

Federal court affirms MERS’ role in chain of title

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 wins now than losses.



MERS racks up another significant win

The United States District Court for the Eastern District of North Carolina found in favor of Mortgage Electronic Registration Systems, Inc. (MERS), JP Morgan Chase Bank, and other MERS® System members wherein the plaintiff filed several counts including “fraud by use of MERS” alleging the company could neither be named a beneficiary nor a nominee of a lender in the Deed.

The plaintiff further claimed that the “the hidden purpose of MERS is to defraud borrowers and the clerks of court by hiding the true owners of secured interests on property in opposition to common law policies and the laws of North Carolina, and that all transfers of the Deed or the Note by MERS are void.”

According to court records, the court found that “despite the plaintiff’s contention to the contrary, the Deed unequivocally identifies MERS and its position.”

Judge Terrence W. Boyle ruled that “the plaintiff has failed to uncover any case finding that MERS violates North Carolina law whereas several other courts have held that MERS is lawful and accordingly has the authority to assign it rights under deeds of trust.”

Advertisement. Scroll to continue reading.

“This ruling serves as a reminder that prior case law has been settled. Courts have consistently found that MERS has authority to assign its rights under deeds of trust,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “MERS has legal authority to act on behalf of the lender – including the right to execute the assignment – and this authority is granted by plain language in the mortgage document signed at closing by the borrower.”

While MERS critics believe the company played a substantial role in the toppling of the housing dominoes, but across the nation, judges are affirming their role as legitimate and lawsuits against MERS are failing in increasing numbers.

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 *


American Genius
news neatly in your inbox

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



Economic News

(BUSINESS NEWS) Ben Carson's initial appointment to HUD was controversial given his lack of experience in housing, but what is the pulse now?

Housing News

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as...

Housing News

(Housing News) If you own a home or are thinking of buying, you should know the factors that give you an advantage with your...

Housing News

(Housing) Realtors are tasked with being up to date on endless information, and attending the annual REALTORS Conference and Expo is a fast way...

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.