MERS Unraveling

“And as for the free house, most homeowners only want to work out the terms of a real note and a real mortgage and pay back the money that the investor would otherwise lose if that portion of the loan that has not already been paid as “settlement” when the investors discovered what had been done with their money.”

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“Aside from the inappropriate reliance upon the statutory definition of “mortgagee,” MERS’s position that it can be both the mortgagee and an agent of the mortgagee is absurd, at best. — Judge Grossman, Federal Bankruptpcy Court

The Court recognizes that an adverse ruling regarding MERS’s authority to assign mortgages or act on behalf of its member/lenders could have a significant impact on MERS and upon the lenders, which do business with MERS throughout the United States.

However, the Court must resolve the instant matter by applying the laws as they exist today. It is up to the legislative branch, if it chooses, to amend the current statutes to confer upon MERS the requisite authority to assign mortgages under its current business practices.

MERS and its partners made the decision to create and operate under a business model that was designed in large part to avoid the requirements of the traditional…

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3 thoughts on “MERS Unraveling

  1. The opinion of Judge Grossman in Agard was issued 6 1/2 years ago. Some of the language Grossman selected is pleasing to the ears of foreclosure fighters, but it is important to recognize it was intended so prospectively it didn’t even apply to the case in which it was uttered. The motion for relief from automatic stay was ultimately granted.

    Google scholar shows In re Agard has been cited to in more than 100 cases. A litigant citing to the opinion without also doing current research does so at his/her own peril.

    • It’s the fact that the Judge expressed his legal opinion and stated up front that due to RookerFeldman his opinion was not applicable to the Agard case. It was a warning shot. It is also sharing expertise for other judges to consider and encourage the use of the logical and honorable side of their brain when ruling in foreclosure cases.

      • Right. Rooker-Feldman. I read Agard when current but had forgotten about the application of Rooker-Feldman (or res judicata).

        I’m not citing to Agard, and therefore don’t need to do, and haven’t done, the follow up research. What has been the impact since the opinion issued?

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