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MERSCORP Holdings, the parent of the electronic mortgage registry known as MERS, just won another legal victory in one of the pending recording fee lawsuits filed against it.
A few years ago, municipalities began filing suits against MERS alleging it had failed to pay required recording fees on mortgage assignments made through the MERS electronic system.
One of those cases – Mayme Brown v. MERS – developed in Arkansas and turned into a class action suit that allegedt Arkansas taxpayers were defrauded by MERS' actions.
However, the U.S. Eight Circuit Court of Appeals ruled in favor of MERS this past week. The court agreed with a lower court and found that the state of Arkansas does not require the recording of all documents.
Another claim related to MERS financial benefit – or unjust enrichment – was also tossed out by the court.
"This is an excellent decision for MERS, as it puts this case to rest by emphasizing that MERS’ role as mortgagee and lenders’ use of the MERS System is legal under Arkansas law and consistent with the purpose of the state’s recording statute," said Janis L. Smith, a spokesperson for MERSCORP.
