Editor: David Reiss
Brooklyn Law School

March 12, 2013

Florida Circuit Court Holds that MERS has No Standing if it Never Held the Mortgage Note

By Gloria Liu

In MERS, Inc. v. Cabrera, (11th Cir. Sept. 16, 2005), the court held that MERS’s allegations that it “owned”, “held” and “possessed” the mortgage notes are clearly, palpably and inherently false because it never held the Note in its physical possession. The plaintiff Cabrera alleged that it owned and held the Note and Mortgage. MERS joined itself as a nominee for Fermont Investment and Loan, the lender.  MERS conceded that it had no “beneficial interest” in the Mortgage Notes. The court reasoned that because MERS never held the note and had no “beneficial interest” it did not have standing in the case.

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