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.”
“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.