FOR IMMEDIATE RELEASE
Contact: Karmela Lejarde, 703-761-1274

Feb. 21, 2007, Tampa, FL—The Second District Court of Appeals of Florida today ruled that MERS has the right to be a party in a foreclosure action. This victory not only affirms the legal premise upon which MERS was created, but also verifies already established state law.

“We undertook this lawsuit not just for MERS but for the industry as a whole,” said R.K. Arnold, President & CEO of MERS. “This victory is for the entire mortgage lending community because MERS is no different than a servicer when it comes to foreclosures, and this case was our opportunity to prove it in court.”

The ruling has broad industry-wide implications for the state of Florida, which now formally confirms that holders, including MERS and traditional servicers, can be a party in a foreclosure. The decision affects more than just MERS foreclosures since an adverse ruling could have halted foreclosures by mortgage servicers as well.

According to the text of the decision, “The holder of a note has standing to seek enforcement of the note.” It also stated that “standing is broader than just actual ownership of the beneficial interest in the note,” and that “[t]he Florida real party in interest rule permits an action to be prosecuted in the name of someone other than, but acting for, the real party in interest.”

A similar case in Miami-Dade County’s Third District Court of Appeals is pending.