September 17, 2013
United States District Court Rules That MERS Had The Power to Assign the Deed of Trust
The United States District Court of the Eastern District of California in deciding Coburn v. Bank of New York Mellon, N.A., 2:10-CV-03080 (2010) granted defendants’ motion to dismiss. The court also handed down the ruling that the plaintiff’s claim of deceit was without merit.
The plaintiff argued that MERS simply lacked the power to assign the deed of trust to The Bank of New York Mellon since MERS was neither the owner of the mortgage nor holder of the note. The court rejected this assertion.
The court held that MERS had the authority to assign its beneficial interest to another party. The court also held that MERS did not violate California Civil Code §1095 in assigning the deed of trust to the bank.
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