Nevada District Court Holds that MERS Has Power to Start Foreclosure Action on Behalf of Lender

Posted by & filed under 2011, Downstream litigation, Downstream litigation by state, Foreclosures, Nevada.

The federal district court of Nevada in Smith v. Community Lending, 773 F.Supp.2d 941 (D.N.V. 2011), held that MERS properly started a foreclosure action on behalf of the lender, Community Lending, Inc., because it found that MERS acted within the scope of its authority as Community Lending’s agent in the foreclosure. In this case, the court consolidated… Read more »

Central District of California Court Finds Plaintiff Lacks Standing as There Was No “Injury in Fact”

Posted by & filed under 2011, California, Downstream litigation, Equity, Foreclosures, MERS/Bank has standing.

The United States District Court for the Central District of California in deciding Ellis v. Bank of Am., N.A., 2013 U.S. Dist. LEXIS 157173 (C.D. Cal. Oct. 28, 2013) concluded that plaintiff did not have standing to challenge defendants’ initiating foreclosure proceedings. Plaintiff brought a complaint with a litany of claims. The claims included (1)… Read more »

Georgia District Court Holds Foreclosure May Be Wrongful Where Security Deed and Note Are “Split”

Posted by & filed under 2011, Downstream litigation, Georgia, Note ownership litigation.

In Morgan v. Ocwen Loan Servicing, LLC, No. 1:10-cv-3555-AT (N.D.Ga. July 7, 2011), homeowner obtained a residential mortgage loan memorialized by two documents: a promissory note and a security deed. The original grantee of the promissory note was Guaranteed Rate. The original grantee of the security deed was MERS “as nominee” for Guaranteed Rate and its successors and… Read more »

Rhode Island Court Rules That under State law, Only Parties to a Contract May Seek to Have Rights Declared Under a Contract

Posted by & filed under 2011, Downstream litigation, Foreclosures, MBS industry, MERS/Bank has standing, Rhode Island.

The Rhode Island court in deciding Fryzel v. MERS, No. CA 10-352 (D.Ri., 2011) decided that under Rhode Island law, only parties to a contract may seek to have rights declared under a contract. The court found that the plaintiff lacked standing to challenge the transfer of the promissory note or assignment of mortgage granted… Read more »

Court Holds That Mortgagor Lacks Standing to Challenge the Propriety of Mortgage Assignments Under Rhode Island Law

Posted by & filed under 2011, Downstream litigation, Foreclosures, MERS/Bank has standing, Rhode Island.

The Rhode Island magistrate judge in Cosajay v. Mortgage Electronic Registration Systems, Inc., C.A. No. 10-442-M (D.R.I. June 23, 2011) issued “Reports and Recommendations,” holding that according to Rhode Island law a mortgagor “lacks standing to challenge the propriety of mortgage assignments and the effect those assignments, if any, could have on the underlying obligation.”… Read more »

Texas Court Plaintiff’s Challenges the Authority of MERS to Assign its Lien Interest to a Successive Party

Posted by & filed under 2011, Downstream litigation, Foreclosures, Texas.

The Texas court in Eskridge v. Federal Home Loan Mortg. Corp., No. 6:10-CV-285, (W.D. Tex., 2011) dismissed Plaintiff’s claims to challenges the authority of MERS to assign its lien interest to a successive party. The plaintiff unsuccessfully argued that she had superior title because the note as well as the deed of trust was split…. Read more »