Federal Court Victory Reaffirms MERS Standing as Mortgagee

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

RESTON, Virginia (July 14, 2010)—A federal court in Missouri has upheld the constitutional right of due process for Mortgage Electronic Registration Systems, Inc. (MERS) as mortgagee of record.

The United States District Court for the Eastern District of Missouri ruled July 1, 2010 that MERS, as the recorded mortgagee, has the right to receive notification of the tax sale and right of redemption under the United States Constitution and Missouri state law. The court ruled the Collector's Deed issued to the defendant in the case is null and void because notice was not provided to MERS. The Court noted that the Supreme Court of the United States has held that claims similar to the lien rights MERS holds as nominee for its lenders are property entitled to due process protections.

“This is not just a victory for MERS, but a victory for holders of property rights across the nation,” said MERS President & CEO R.K. Arnold. “The decision is an affirmation of our basic, constitutional right that says government cannot take away private property without first giving prior notice.”

For loans registered with MERS, borrowers agreed to MERS serving as mortgagee when they signed their closing documents. The Missouri ruling reinforces that, when MERS is the mortgagee of record, MERS has a right to receive notice.

To learn more about MERS, please click here.

###