MERS Authority as Mortgagee is Affirmed Again by Supreme Court of Rhode Island
FOR IMMEDIATE RELEASE
CONTACT: Janis Smith
Reston, Virginia, July 11, 2014— MERSCORP Holdings, Inc. today announced that the Rhode Island Supreme Court ruled in favor of Mortgage Electronic Registration Systems, Inc. (MERS) affirming MERS’ role as mortgagee, including its authority to assign a mortgage.
In pdf Ingram v. Mortgage Electronic Registration Systems, Inc. (95 KB) , the plaintiffs appealed the Superior Court’s grant of summary judgment in favor of MERS and other defendants, alleging in part that the mortgage assignment from MERS to Deutsche Bank was void and therefore Deutsche Bank did not have the ability to foreclose on the property.
The Supreme Court, relying on its previous decisions in pdf Bucci v. Lehman Brothers Bank Bucci v. Lehman Brothers Bank (54 KB) and pdf Mruk v. Mortgage Electronic Registration Systems, Inc. Mruk v. Mortgage Electronic Registration Systems, Inc. (56 KB) , wrote that “a mortgage, which was identical to the mortgage in this case, ‘explicitly granted the power of sale to MERS and its successors and assigns.’ We concluded that the assignee of MERS ‘acquired all the rights which MERS possessed’ and therefore possessed ‘the right to exercise the power of sale’” (emphasis in original). Ultimately, the Court rejected the plaintiffs’ arguments and found that “Deutsche Bank acquired all the rights which MERS possessed, including the right to exercise the power of sale.”
“The Court’s ruling is consistent with previous decisions upholding MERS’ role as mortgagee and validating its authority to assign mortgages it holds,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith.
For descriptions of cases and other materials pertaining to MERS’ business model and role in U.S. housing, please visit www.mersinc.org.
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.