California Third Appellate District Court affirms MERS’ rights to assign a mortgage
MERSCORP Holdings announced Monday that it secured another victory over a homeowner who challenged its authority to assign a mortgage.
MERS, parent of the electronic mortgage registry with the same name, had its authority upheld this time by the Court of Appeal of California for the Third Appellate District, which heard a lawsuit brought against MERS and Bank of America (BAC) by homeowners claiming wrongful foreclosure.
In Boyle vs. Bank of America, the homeowners sued Bank of America and MERS for fraud and wrongful foreclosure, claiming that the MERS deed of trust was invalid because MERS lacked any interest in the promissory note, which rendered the MERS deed of trust and assignment of the deed of trust to Bank of America ineffective.
The homeowners alleged that Bank of America’s attempts to foreclose on the property were improper because the defective assignment failed to convey to Bank of America the right to foreclose.
The homeowners also claimed that Bank of America lacked the right to foreclose because of the failure to properly transfer the note to a securitized trust that owned the loan.
But a lower court granted Bank of America and MERS a demurrer on each of the homeowner’s claims, and the appellate court agreed, finding that MERS was the original beneficiary under the deed of trust and that its assignment of that interest was not fraudulent.