Idaho Court Sides with Fannie Mae, MERS in Counterclaim

In the case _Fannie Mae v. Lopez_, Judge Lynn G. Norton of the Elmore County District Court in Idaho ruled in favor of Fannie Mae and dismissed complaints against MERSCORP Holdings.

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The borrowers in the case fell behind on their payment and received a HAMP modification, but became past due again on their payments, according to the written decision.

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The home was then sold in a foreclosure auction, in which Fannie Mae was the highest bidder. When Fannie Mae filed a complaint to evict the borrowers, the borrowers filed a counterclaim, alleging wrongful foreclosure.

MERS was also named as a defendant in the counterclaim. In the case, the borrowers claimed that the foreclosure sale of their property was invalid under Idaho law and stated MERS was not the beneficiary under the Deed of Trust, and thus MERS could not assign the deed to EverHome Mortgage Company, the foreclosing party.

The court dismissed the borrower's complaint against all defendants. Judge Norton cited the decision in _Trotter v. Bank of New York_. In the decision, the Idaho Supreme Court upheld a foreclosure where MERS, acting as a beneficiary, assigned its interest in the Deed of Trust.

Norton also stated the ""language from the Deed of Trust unambiguously intends that MERS act as an agent of the Lender, or its assigns, in administering the deed of trust, that it holds ‘legal title,' and therefore has the authority to appoint successor trustees and to initiate foreclosure proceedings.""