Idaho Supreme Court Affirms MERS is a Lawful Beneficiary
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Idaho Supreme Court Affirms MERS is a Lawful Beneficiary


Reston, Virginia – January 8, 2013 – (RealEstateRama) — MERSCORP Holdings, Inc. today announced that the Idaho Supreme Court affirmed the District Court of the Fourth Judicial District judgment that MERS is a valid beneficiary.

In Renshaw vs. Mortgage Electronic Registration Systems, Inc., the borrower contended that MERS could not be a beneficiary because it was not owed any money under the promissory note. The Idaho Supreme Court had previously ruled in Edwards v. Mortgage Electronic Registration Systems, Inc. that “[H]aving MERS the named beneficiary as nominee for the lender conforms to the requirements of a deed of trust under Idaho law.”

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The borrower argued that this case was distinguishable from Edwards because here the promissory note was assigned several times. In his opinion, Justice Daniel T. Eismann, joined by Chief Justice Roger S. Burdick, Justices Jim Jones and Joel D. Horton and Pro Tem Gerald Schroeder, stated that a transfer of a promissory note “does not alter the right of the new holder of the note to have MERS be the named beneficiary as the nominee of the new holder.” Further, Justice Eismann pointed out that MERS did not violate Idaho Code § 45-1505(1) and stated, “When Homecomings transferred its interest in the promissory note, it also transferred its interest in the deed of trust to the assignee of the note. When that occurred, there is no need to change the name of the beneficiary in the deed of trust as long as the new holder of the note agreed that MERS could act as its nominee. … Under the facts of this case, no assignment of the deed of trust was necessary.”

“The highest Court in Idaho has ruled once again that MERS is a valid beneficiary,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “This is consistent with past Idaho court decisions that have upheld MERS’ role and authority and it validates MERS’ role as trust deed beneficiary under Idaho law.”

For descriptions of cases and other materials pertaining to MERS’ business model and role in U.S. housing, please visit


MERSCORP Holdings, Inc. is a privately held corporation that owns and manages the MERS® System and all other MERS® products. It is a member-based organization made up of thousands of lenders, servicers, sub-servicers, investors and government institutions. Mortgage Electronic Registration Systems, Inc. (MERS) serves as the mortgagee in the land records for loans registered on the MERS® System, and is a nominee (or agent) for the owner of the promissory note. The MERS® System is a national electronic database that tracks changes in mortgage servicing and beneficial ownership interests in residential mortgage loans on behalf of its members.

CONTACT: Janis Smith
Phone: 703-738-0230
Email: janiss (at) mersinc (dot) org


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