MERS Loses in Washington Supreme Court, May Face Allegations of Deceptive Practices

The Washington Supreme Court, answering questions posed by a federal judge, said Aug. 16 that Mortgage Electronic Registration Systems cannot appoint trustees to initiate nonjudicial foreclosures there, holding MERS is not a “beneficiary” under Washington law because it does not hold promissory notes secured by deeds of trust (Bain v. Mortgage Electronic Registration Systems); (Selkowitz v. Litton Loan Servicing LP).

“Simply put, if MERS does not hold the note, it is not a lawful beneficiary,” Judge Tom Chambers and eight colleagues said in a 41-page decision that marks a significant blow against MERS, a firm created ...