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Michigan Panel Rejects Challenge to MERS, Wells Fargo a lower court decision dismissing a legal challenge to Wells Fargo's authority to fore- close by advertisement in the state. Michigan is a quasi-judicial state, mean- A panel of judges in Michigan has upheld ing it recognizes foreclosures that go through the courts and foreclosures by advertisement (gives creditors the right to foreclose after posting a notice of default in a newspaper for four consecutive weeks when the mortgage includes a power of sale clause). In Hargrow v. Wells Fargo Bank N.A., subservicer Ofori Lender Services, out of Raleigh, North Carolina, partnered to earn the National Institute of Standards and Technology (NIST) and Federal Information Security Management Act (FISMA) certification. This recognition is for companies that meet strict government security guidelines and is mandatory for servicers that work directly with government loans. By completing the certification, McDonald, a mortgage servicing technology provider, enables its clients to automatically fulfill this requirement. "Since Ofori directly services government a three-judge panel of the 6th U.S. Circuit Court of Appeals rejected the plaintiffs' claims that Wells Fargo—an assignee of Mortgage Electronic Registration Systems, Inc., (MERS)—was not entitled to foreclose because it did not own an interest in the in- debtedness. The panel also rejected the claim that the mortgage assignment by MERS to Wells Fargo was invalid because the mortgage could not be assigned without a correspond- ing assignment of the underlying debt. In 2011, the Michigan Supreme Court ruled that MERS, as record-holder of the mortgage, owned an interest in the indebted- ness that gave authorization to foreclose by ad- vertisement despite not owning the underlying debt. The Supreme Court's decision reversed an earlier ruling that called into question thousands of foreclosures initiated by MERS. The appellate court of the 6th circuit upheld a June 2011 decision by U.S. District Judge Sean F. Cox. In its decision, the panel wrote that "Hargrow granted MERS the power to assign the mortgage, and MERS used that power to assign the mortgage to Wells Fargo. The assignment was recorded in the Washtenaw County Clerk's Office, creating a clear record chain of title for the mortgage." Because the chain of title was properly recorded, the court ruled that Wells Fargo did have the power to foreclose by advertisement. McDonald Computer Corp. and Ofori Earn NIST/FISMA Certification Southfield, Michigan's McDonald Computer Corporation and mortgage 124 loans, they are required to partner with a NIST/FISMA-compliant technology provider, which is extremely rare to find in today's industry," said Jim McDonald, founder and president of McDonald Computer Corporation. "Together, McDonald and Ofori took the necessary steps to complete the very involved process, which required two years of effort, to become NIST/FISMA compliant." Ex-Football Pro Launches Minority Real Estate Investment Firm troit Lions, All-Pro running back Billy Sims is ready to test his mettle in real estate. The 1978 Heisman Trophy winner announced he has partnered with Detroit businessman David "Chief" Tomby to start a minority investment firm. Sims said the idea for the startup Nearly 30 years after playing for the De- consists of seven separate joint-venture com- panies, giving ACCV the resources to make several million-dollar purchases at the same time. Sims says ACCV already has a backer in Idaho and is prepared to make its first buy of at least $5 million. The difficulty, he said, is in trying to get the major banks, along with Fannie Mae, Freddie Mac, and HUD, to take note of ACCV's ideas. Sims and Tomby are currently working to patent a unique concept designed to turn foreclosures into rentals, managing thousands of scattered rental properties at one time. They have sent letters to all the major institutions in hopes of attracting attention and getting a chance to demonstrate their management idea with 2,000-5,000 homes. ACCV's ultimate hope is to use its foreclosure-to-rental concept to solve the foreclosure glut. Sims says he and ACCV can save the GSEs millions of dollars and alleviate the aggravation of dealing with squatters and the neighborhood blight that come with vacancies. "We just want to be taken seriously," Sims said. "Our deal can clear [the mess of foreclosures] up and move the economy. That's a lot to say for a small company." came when he saw a report detailing how Canadian investors are buying the majority of luxury homes in the United States and Chinese investment firms are purchas- ing urban homes. Sims and Tomby took a closer look at the market for minority investment firms and found none. The problem they found was that most banks they talked to require a minimum purchase of $3 million to $5 million. "We took the liberty of contacting people Be confident that the industry is hearing your message. Advertise with in the industry, asking why they thought this was the case—no minority participants," Sims said. "The common answer was because they simply don't have the cash to make the minimum purchase." With that in mind, the partners formed American, Canadian & Chinese Venture Investment Group (ACCV). The company DS News today. Call 214.525.6700 or visit DSNews.com.

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