The Ninth Circuit Court of Appeals affirmed the district court’s judgment dismissing the borrower’s wrongful foreclosure claim against MERSCORP Holdings, the latest in an ongoing string of victories for the company.
MERS has been the target for a slew of lawsuits and criticism, all of which it has beaten back in courts of law and the court of public opinion.
In Tung Q Lam, v. JPMorgan Chase Bank, the borrower argued that MERS lacked authority to assign the deed of trust because MERS lost its status as agent of the promissory note holder when the note was assigned to subsequent entities.
In its order, the Ninth Circuit held the plaintiff’s argument “is foreclosed by his agreement in the deed of trust that MERS would have the right to ‘exercise any or all of [the lender’s] interests,’” which includes the authority to assign the deed of trust.
“The authority to assign is a reoccurring issue brought in many of the cases that MERS defends and this authority is routinely upheld by courts across the country,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “MERS has legal authority to act on behalf of the lender – including the right to execute the assignment – and this authority is granted by plain language in the mortgage document signed at closing by the borrower.”