Oregon Supreme Court Hears Arguments in MERS Foreclosure Cases

Oregon Supreme Court

The Oregon Supreme Court has now heard arguments in MERS foreclosure cases – both of which involve whether or not MERS qualifies as a beneficiary under Oregon law.  If the court rules against MERS that could send more foreclosures to the courts.

in July, the Oregon Court of Appeals ruled MERS doesn't qualify as a beneficiary of record for a mortgage, as it is listed on thousands of Oregon deeds (Niday v. GMAC Mortgage LLC).  It further ruled that lenders are required to file a complete ownership history of a mortgage before foreclosing. 

As summarized by Oregon Live:  “Attorney Jeffrey Myers, arguing on behalf of a group of homeowners involved in MERS lawsuits in federal court, said the beneficiary is the party to whom mortgage payments are owed -- the lender or successors who buy the loan, regardless of what the deed itself says. … MERS, for its part, argues it can be appointed beneficiary as an agent of the lender.  That means MERS would have many of the same powers as the owner of a loan, including foreclosing on its behalf.  ‘The beneficiary is the person who the parties designate as beneficiary,’ said Gregory Chaimov, an attorney representing MERS. ‘And that's the end of the inquiry.’”

The Niday ruling, along with new state foreclosure regulations introduced last summer, brought out-of-court foreclosures in the state to a virtual halt.  Instead, an increasing number of foreclosures are being filed in court, reported Oregon Live.

Read story in Oregon Live