The Michigan Court of Appeals Holds that Sheriff’s Sale was Invalid because MERS Foreclosed on Homeowner’s Property using Nonjudicial Foreclosure by Advertisement even though MERS was only a Mortgagee

Posted by & filed under 2011, Downstream litigation, MERS/Bank lacks standing, Michigan.

In Richard v. Schneiderman & Sherman, PC, 294 Mich. App. 37, 818 N.W.2d 334 (2011), the Michigan Court of Appeals held that MERS foreclosure by Advertisement was void ab initio. Aaron Richard, homeowner, appealed an order granting summary disposition in favor of Schneiderman & Sherman, P.C., GMAC Mortgage, and MERS. Richard purchased the property in… Read more »

Rating Agency Reform

Posted by & filed under Rating agencies, Regulation.

Emily McClintlock Ekins and Mark A. Calabria have recently posted a policy analysis to SSRN, Regulation, Market Structure, and Role of the Credit Rating Agencies.  They argue, as others have before them, that the major rating agencies are an oligopoly.  And like others, they argue that references to ratings should be weeded out from financial… Read more »

Sixth Court of Appeals Clarifies Recording Fee Standing Issue

Posted by & filed under 2013, Downstream litigation, Kentucky, Recording-fee litigation.

In Christian County Clerk, et al. v. Mortgage Electronic Registration Systems, Inc., et al., No. 12-5237 (6th Cir. 2013), the United States Sixth Circuit Court of Appeals heard a case on appeal from the United States District Court for the Western District of Kentucky. The case involved two county clerks suing MERS, its parent company… Read more »

Tennessee Court of Appeals Dismisses Homeowner Complaint as Unripe

Posted by & filed under 2010, Downstream litigation, Note ownership litigation, Tennessee.

In Mills v. First Horizon Home Loan Corp., No. W-2010-00310-COA-R3-CV, 2010 WL 4629610 (Tenn. Ct. App. Nov. 16, 2010), the court dismissed the homeowners complaint as unripe for declaratory judgment. It did not find that the mortgage would be unenforceable based on the involvement of MERS. The appeal arose from a complaint to quiet title… Read more »

Bransten Trio: Part Tres

Posted by & filed under Investor lawsuits, Upstream litigation.

The last of the Bransten Trio of cases (previously, I wrote of Part Un and Part Deux) dealing with Allstate’s complaint against Morgan Stanley has some of the allegedly misrepresentative language at issues in such cases.  A sampling includes “These mortgage loans may be considered to be of a riskier nature than mortgage loans made… Read more »

US District Court of Nevada Dismisses Motion of Wrongful Foreclosure, Negligence and Quiet Title

Posted by & filed under 2009, Downstream litigation, MERS/Bank has standing, Nevada.

In Vazquez v. Aurora Loan Services, No. 2:08-CV-01800-RCJ-RJJ, 2009 WL 1076807 (D. Nev. 2009), the court granted MERS’ motion to dismiss claims of wrongful foreclosure, negligence and quiet title and found that the land records “sufficiently demonstrate[d] standing by Defendants with respect to the loan and the foreclosure conducted pursuant to applicable law and the… Read more »

Kansas Bankruptcy Court Finds that Agency Relationship Exists With Use of the Word “Nominee”

Posted by & filed under 2011, Bankruptcy litigation, Kansas, Note ownership litigation.

Martinez v. MERS, et al., No. 09‐40886, 2011 WL 489905 (Bankr. D. Kan. Feb. 10, 2011), the court held that assignment of the Note and Mortgage to different entities does not render them void because such a split may be performed when there is an “agency relationship” between the holder of the note and the… Read more »