California Courts Favor MERS in Cases Regarding Notice Under Law – NMP Skip to main content

California Courts Favor MERS in Cases Regarding Notice Under Law

Jan 24, 2017

MERSCORP Holdings Inc. is claiming victory following a pair of court rulings that stated its subsidiary, Mortgage Electronic Registration Systems Inc. (MERS), was entitled to notice under California law.

In the cases Mortgage Elec. Registration Sys. Inc., et al v. Johnston, and Mortgage Elec. Registration Sys. v. Robinson, MERS filed suit to set aside the defendants’ quiet title judgments that purported to void MERS’ deeds of trust against the properties, which were obtained in prior lawsuits, MERSCORP stated that the defendants in both cases did not identify MERS as a party in their actions and failed to provide notice of the prior lawsuits to MERS.

In Robinson, the U.S. Court of Appeals for the Ninth Circuit affirmed the trial court’s judgment that MERS had a right to notice.

“MERS has a recorded adverse claim against the property under the deed of trust, and the Robinsons were required to name MERS as a defendant in [their] quiet title action,” the ruling stated.

In Johnston, the U.S. District Court for the Central District of California held, “Here, the Deed of Trust provides that MERS ‘holds legal title’ … [therefore] the Court finds that MERS had an adverse claim against Johnston’s title which was known to Johnston when he filed the quiet title action.”

“We are pleased that courts have repeatedly upheld MERS’ rights as a record beneficiary, to notice of actions affecting its lien interests,” said Janis Smith, MERSCORP Holdings’ vice president for corporate communications.

About the author
Published
Jan 24, 2017
West Capital LO Challenges Contractor Status, Required Fees

A former originator alleges unpaid overtime, recurring tech charges, and company restrictions that he says undermine his independent-contractor status

CFPB Closes 40% Of Investigations, Keeps Mortgage Enforcement In Focus

The federal watchdog closed thousands of supervisory and investigative matters as it narrowed oversight

Midterms Loom With Mortgage Policy Changes Already In Motion

As voters head to the polls Tuesday, Washington is weighing changes to refinancing costs, loan pricing, and lending regulations

UAD 3.6 Deadline Is Monday. Are Brokers Ready?

Wholesale lenders have adopted different rules for appraisal transfers, loan product changes, and reporting formats, adding complications for brokers and appraisers ahead of the Nov. 2 mandate

Friday Harbor Expands AI Appraisal Reviews As UAD 3.6 Deadline Nears

The new capability adds more than 350 automated checks as lenders prepare for the November 2 mandate

Oct 27, 2026
The Hidden Cost Of Appraisal Uncertainty

As home equity lending grows, lenders need a better way to resolve conflicting property evidence before it creates costly setbacks