MERS Wins Dismissal of 72 Suits Challenging Its Legality
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Mortgage Electronic Registration Systems Inc. won dismissal of 72 lawsuits questioning the legality of its system for allowing banks to use it to register home loans.
U.S. District Judge James A. Teilborg in Phoenix, where the cases have been centralized, dismissed the litigation in an order yesterday. Teilborg rejected the homeowners’ claims that MERS is a “sham beneficiary” and that foreclosures based on MERS documents are invalid. The decision echoed a federal appeals court ruling last month that upheld an earlier holding of his.