9th Circ. Clears MERS In Mortgage Fraud Suit

Law360, New York (September 7, 2011, 4:01 PM EDT) -- The Ninth Circuit on Wednesday threw out a class action that brought fraud allegations against Mortgage Electronic Registration Systems Inc., which runs a mortgage registration system widely used by banks.

A three-judge panel said the trial court was correct to dismiss the suit, in which homeowners complained that MERS was a sham that gave its member banks — including JPMorgan Chase Bank NA, HSBC Mortgage Corp. and Wells Fargo Bank NA — no right to foreclose on MERS registered mortgages.

“We are unpersuaded that the plaintiffs’ allegations...
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