Oregon rules against banks, MERS

Oregon rules against banks, MERS

The Oregon Court of Appeals ruled that the mortgage industry's document-registry system could not be used to skirt state recording law.

In a decision with implications beyond the Mortgage Electronic Registration Systems Inc., the state's second-highest court also held Wednesday that a lender must ensure a complete ownership history of the mortgage is filed in county records before it can foreclose outside a courtroom.

MERS was created by the mortgage industry to bundle and sell loans to investors without having to record every assignment with county clerks. It is involved in most mortgages across the country.

Read more at OregonLive.com.

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