Nevada Supreme Court Continues Trend of Upholding the Legitimacy of MERS

In two separate cases, the Nevada Supreme Court has upheld the validity of a mortgage assignment from MERS and rejected borrowers arguments that the use of MERS somehow invalidates a foreclosure. In both Davis v. U.S. Bank, Nat. Ass'n, No. 56306, and Volkes v. BAC Home Loans Servicing, LP, No. 57304, the Court rejected the contention that a MERS-generated assignment is insufficient to establish the ownership of a loan. The appellants argued that the assignment was invalid solely because it was generated by MERS and that MERS is a sham or fraud entity. The Court specifically rejected this argument, citing numerous opinions from courts in Nevada and across that nation that have recognized MERS as having a legitimate business purpose.

Should you have any questions about these decisions or need additional information, please contact Thomas Schehr or Alexandra Wolfe, co-authors of this alert, at 313-568-6659 or 313-568-6965, respectively.

For more information about Dykema’s Consumer Financial Services practice, please contact Richard Gottlieb, Director of Dykema's Financial Industry Group, at 312-627-2196.

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