Phoenix-based U.S. District Judge James A. Teilborg continued to issue judicial rulings in favor of Mortgage Electronic Registration Systems Inc. (MERS) by dismissing 72 lawsuits that questioned MERS' legality in the servicing process.
Bloomberg reports that Teilborg ruled against homeowners who argued that MERS was a ‘sham beneficiary’ and that foreclosures involving the use of MERS' documentation were invalid.
‘MERS serves as the beneficiary on plaintiffs' deeds of trust, as the nominee or agent for 'any valid note holder,'’ Teilborg wrote in his decision.
Teilborg had previously ruled in favor of MERS in a September 2010 case, where he dismissed six proposed class-action lawsuits against the company. Teilborg's 2009 dismissal of a lawsuit brought against MERS by three homeowners was upheld last month by a federal appeals court in San Francisco.