REFinBlog

Editor: David Reiss
Brooklyn Law School

September 13, 2013

United States District Court, Eastern District of Arkansas Dismisses Borrower’s Claim of Invalid Assignment

By Ebube Okoli

The United States District Court, Eastern District of Arkansas in Kimberly Peace v. MERS, 4:09-cv-00966 (2010) granted MERS’ motion to dismiss. The court found that the assignment to MERS was valid.

This also led the court to decide that BAC had standing to appoint Recon Trust as BAC’s agent to exercise its right to start a non-judicial foreclosure. The borrower unsuccessfully alleged that the assignment from MERS to BAC had no legal effect as MERS was not on the note and was not an agent for the note holder. The court rejected this contention.

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