MERS Wins Dismissal Of Texas Case

Posted by Orb Staff on October 31, 2012 No Comments
Categories : Mortgage Servicing

12668_texas_429 MERS Wins Dismissal Of Texas Case MERSCORP Holdings Inc. has announced that a U.S. District Court granted a dismissal motion filed by Mortgage Electronic Registration Systems Inc. (MERS) and its co-defendants in response to a wrongful foreclosure complaint and claims of unpaid county recording clerk filing fees in two Texas counties.

In his ruling, Judge David C. Guaderrama of the Western District of Texas, El Paso Division, rejected the plaintiffs' claim that MERS failed to record subsequent transfers of interest in certain real property subject to mortgage, which allegedly resulted in lost revenue due to the counties.

‘We are pleased that this meritless case is finally closed and that the court found that plaintiffs lack standing to seek rewards for third-party county recorders,’ says Janis Smith, MERSCORP Holdings' vice president for corporate communications. ‘Complaints with generalized and unsupported allegations are a common foreclosure delay tactic, but multiple opinions by courts in Texas have supported MERS' authority as a mortgagee under Texas law because the deeds of trust signed by borrowers at closing identify MERS as the beneficiary and the nominee for the original lender and its successors and assigns.’

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