Mers Assignment

Mers Assignment-28
This allows banks to more easily transfer loans among them without creating a new assignment each time.You may have a defense against a foreclosure action if MERS is listed as the owner of the mortgage.See our Privacy Policy and Third Party Partners to learn more about the use of data and your rights.

This allows banks to more easily transfer loans among them without creating a new assignment each time.You may have a defense against a foreclosure action if MERS is listed as the owner of the mortgage.

Nonetheless, the Fifth Circuit rejected the plaintiffs’ argument that MERS could not act as a beneficiary of the deed of trust, holding that Texas law granted MERS this authority and the deed of trust itself explicitly designates MERS as the beneficiary.

Accordingly, the Court held, “MERS had the right to assign the [deed of trust].” Next, the Fifth Circuit rejected the plaintiffs’ contention that the assignment of the deed of trust was void under New York law for violating the PSA.

This is because collection efforts hinge on owning the promissory note.

If the foreclosing party cannot produce the promissory note, the homeowner will have a defense to the foreclosure.

If MERS is the current assignee, it cannot pursue a foreclosure because it does not have an interest in the promissory note.

MERS simply serves as an agent for the current owner of the mortgage and assists in creating a record for transfers of the mortgage.The mortgage industry uses a tool known as the Mortgage Electronic Registration System (MERS) to keep track of assignments.MERS may be a nominee for the lender, or it may receive the mortgage as an assignment.Courts in other states are more lenient in their review of assignments.Since the mortgage is closely associated with the promissory note, the foreclosing party may be allowed to enforce the promissory note even if it cannot produce a valid assignment of the mortgage.If the assignment to the foreclosing party is not valid, this may be a viable defense to a foreclosure.In some states, you can demand that the foreclosing party produce a written assignment of the mortgage.Alternatively, the plaintiffs alleged that New York law governed the validity of the assignment, and the assignment was void under New York law because it violated the applicable pooling and servicing agreement (PSA).Lastly, the plaintiffs argued that the foreclosure constituted a false lien under Texas’s false lien statute, on the same theory that the assignment was invalid because MERS lacked the authority to assign the deed of trust.We use cookies and other technologies to customize your experience, perform analytics and deliver personalized advertising on our sites, apps and newsletters and across the Internet based on your interests.By clicking “I agree” below, you consent to the use by us and our third-party partners of cookies and data gathered from your use of our platforms.

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