Bulletin: MI2011008
Dear Associates:
On November 16, 2011, the Michigan Supreme Court issued an Order overturning the recent Court of Appeals decision in the Residential Funding v. Saurman case. In an expedited hearing to determine whether the Court would hear an appeal in the case, the court, instead, rendered a direct decision instead of waiting to hear an appeal. The Court found that MERS was entitled to foreclose mortgages by advertisement as a holder of an interest in the indebtedness, even though they might not be a holder of the promissory note itself.
As a result, you may proceed to insure advertisement foreclosures brought by MERS without any requirement for production of evidence that MERS is the actual holder of the promissory note. This applies to all past MERS foreclosures and future foreclosures. All other statutory procedures and requirements must still be met.
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THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.