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Washington MERS Suits Fail

Posted in Foreclosure Defense

Judges Dismiss MERS Suits By Evan Nemeroff Two borrower-initiated lawsuits alleging that the Mortgage Electronic Registration Systems role in the plaintiffs’ deeds of trust caused them injury were both dismissed by federal judges in the Western District of Washington Nov. 20, 2013. In Reid v. Countrywide Bank NA, the plaintiff claims the defendants -Countrywide as the lender, LS Title as trustee and MERS as the beneficiary -committed fraud, violated the Washington Consumer Protection Act, were negligent, breached the duty of good faith and fair dealing, placed a cloud on their title. and inflicted emotional distress. The court immediately dismissed the cloud of title and emotional distress claims filed in the first complaint. Allegations were also rejected that the plaintiff was injured by robo-signing acts and were unaware of who was entitled to receive their mortgage payments. A second complaint...

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Washington Supreme Court Hears MERS Case

Posted in Mortgage Modification

WA State Supreme Court Hears Arguments in Case Against MERS   “May a party be a lawful ‘beneficiary’ under Washington’s Deed of Trust Act if it never held the promissory note secured by the Deed of Trust?”   That’s the key question the Washington State’s Supreme Court heard arguments in the potentially pivotal case, Bain v. Mortgage Electronic Registration Systems, et al and Selkowitz v. Little “Litton” Loan Servicing, LP, et al.  It’s also a form of the same question that’s been asked by countless homeowners and their lawyers as they’ve fought to prevent their homes from being lost to foreclosure over the last 3-4 years.   Go back in time fewer than five years and you’d be hard pressed to find anyone who had ever heard of Mortgage Electronic Registration Systems, but today the acronym “MERS,” is a...

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New York Sues 3 Big Banks Over Mortgage Database

Posted in MERS

February 3, 2012 New York Sues 3 Big Banks Over Mortgage Database By REUTERS Attorney General Eric T. Schneiderman of New York sued three major banks on Friday, accusing them of fraud in their use of an electronic mortgage database that he said resulted in deceptive and illegal practices, including false documents in foreclosure proceedings. Mr. Schneiderman, co-chairman of a new mortgage crisis unit under President Obama, filed a lawsuit against Bank of America, Wells Fargo and JPMorgan Chase in New York State Supreme Court in Brooklyn. The database, called the Mortgage Electronic Registration System or MERS, was created in the mid-1990s for tracking mortgage ownership. It is a collaboration of top mortgage servicers, mortgage insurers and Fannie Mae and Freddie Mac, the government entities that hold many of the country’s mortgages. “The mortgage industry created MERS to allow...

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