Oregon Supreme Court Ruling Partially Overturns Lower Court Ruling Regarding MERS
June 11, 2013
June 11, 2013
On Thursday June 6, 2013, the Oregon Supreme Court issued a ruling that, in part, reverses a lower court ruling regarding the Mortgage Electronic Registration System Inc. (MERS).
This current ruling paves the way for financial institutions to go back to the quicker and less expense non-judicial foreclosure process. In the ruling, the Supreme Court found that not all transfers in ownership of a loan need to be recorded in county records before the out-of-court foreclosure may proceed. The court has stated that unwritten assignments and automatic transfers do not need to be recorded in the county records, but written assignments are still required to be recorded per state law.
Last summer the Oregon Court of Appeals ruled that all transfers of ownership must be recorded in the count records before an out-of-court foreclosure could proceed. The MERS business model was created to keep track of ownership of secured home loans as they were bundled and sold off to Wall Street. The transfers of ownership tracked by MERS were not recorded with the county.
The outcome of this previous ruling was financial institutions switching to judicial foreclosures.
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