MERS Passes Florida Test
The Second District Court of Appeals of Florida, in Tampa, has ruled that MERS has the right to be a party in a foreclosure action. MERS said the victory affirms the legal premise upon which the electronic registry for tracking ownership of mortgage loans and servicing rights is based. The ruling also affirms existing state law, MERS said.
MERS president and CEO R.K. Arnold said in a news release that the court victory has widespread positive consequences for the industry. "This victory is for the entire mortgage lending community because MERS is no different than a servicer when it comes to foreclosures, and this case was our opportunity to prove it in court."
The ruling has broad implications for the state of Florida, which now formally confirms that holders, including MERS and traditional servicers, can be a party in a foreclosure, MERS said.
MERS said that an adverse ruling could have halted foreclosures by servicers as well as by MERS. (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com