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Posted by on Jul 24, 2012 in MERS, Mortgage News | 10 comments | Print Print

MERS Wins Again

This should be the end of challenges to MERS. From HW:

One of the more popular claims made by homeowners suing the Mortgage Electronic Registration Systems, or MERS, failed to get passed the California Court of Appeals this past week.

In the Taasen v. Family Lending Services case, the appellate court upheld a lower court’s decision by finding even though MERS did not have physical possession of the original note, it still could initiate a non-judicial foreclosure as long as it was the nominated beneficiary of the deed of trust, MERS said.

“MERS’ authority to assign mortgages has been upheld in hundreds of lawsuits,” said Janis Smith, vice president of corporate communications for MERS. “Not only has the notion that MERS doesn’t have authority to assign been routinely rejected as baseless by courts, including multiple courts in the California system, it’s also an ineffective strategy for avoiding foreclosure after default.”

The case involves an argument often made by homeowners that MERS cannot foreclose on a homeowner unless they possess the actual note.

 

10 Comments

  1. do these people expect to sit in their homes and get free rent forever?

  2. Alas, there seems little reason not to try, avgjoe. :(

  3. Wasn’t MERS suppose to nuke the nation?

  4. Within the last sentence, some might suggest replacing the word “homeowners” with “deadbeats”. “The case involves an argument often made by deadbeats that MERS…”. Yeah, that sounds better.

  5. This is only the end of homeowner challenges to MERS. There are others with better legs.

  6. From who though?

    It would be contrary to current policy of banks-win-everybody-else-loses.

  7. The counties who were stiffed on recording fees, for one.

  8. Taxpayers are happy to cover that on behalf of bankers. America doesn’t fight, it settles.

  9. I have never really understood the claim that counties were “stiffed” on recording fees.

    How can a county be stiffed when they did not perform the service, recording a document? There is no law that I am aware of that requires a lender to record an assignment. It may not be very smart choice for the lender not to do this, but that should not be a county’s concern. If you give me a deed to your property and I do not record it, that is my problem, not the county’s.

    I know it is politically expedient to assume that banks because of their misdeeds owe governments and the taxpayer money, but this one I just do not understand. At some point, logic should hopefully prevail.

  10. Correct. MERS is a non-issue. Counties aren’t entitled to recording fees any more then deadbeats are entitled to a free house.

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