NEVADA SUPREME COURT RULING MAY
CAUSE RIPPLE EFFECT IN HOUSING
INDUSTRY'S MORTGAGE FRAUD CASES

The Nevada Supreme Court weighed
arguments Wednesday on whether
U.S. Bank can foreclose on a Douglas
County couple's home even though not
all required documents were presented
during mediation, required under a
recent State law.

Lawyers involved in the case said that
the court's ruling could have wide
repercussions on foreclosures in a
state hit hard by the collapse of the
housing market.

Attorneys for the couple questioned
whether documents handled by the MERS
(Mortgage Electronic Registration
Systems) were signed by an authorized
officer and properly conveyed the
Davis's mortgage from the now defunct
Ownit Mortgage Solutions to the U.S.
Bank.

The Attorneys claim that MERS lacked
the authority to assign the loan to the
U.S. Bank.

A lawyer for the lender claims that the
case goes beyond the scope of the law
that disputes over the validity of
documents should be addressed in a
separate lawsuit.

A spokesman said that the ruling could
affect thousands of loans in Nevada that
are in foreclosure assigned to MERS.

Judge Gibbons told the defendant's lawyers,
" that they are supposed to produce documents
and prove ownership. It means that people
who sign these documents have the right
to sign them and are not fictional people
forging names."