Commonwealth of Massachusetts Superior Court Rules in Favor of MERS

 Court Cites to Numerous Cases Recognizing MERS as Mortgagee and its Authority to Assign


CONTACT: Janis Smith
Phone: 703-738-0230
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Reston, Virginia, August 12, 2014—MERSCORP Holdings, Inc. today announced that the Commonwealth of Massachusetts Superior Court granted summary judgment in favor of MERS in a suit challenging MERS’ authority to assign a mortgage.

In pdf Gardner v. Mortgage Elec. Registration Sys, Inc. (168 KB) , the plaintiff alleged that MERS could not assign the mortgage because MERS was only the nominee for the original lender and did not hold the note. Further, the plaintiff alleged that the assignment was fraudulently recorded and executed after the foreclosure process began.

In the decision, Justice Edward J. McDonough cited to the holdings from the U.S. First Circuit Court of Appeals decisions in pdf Culhane v. Aurora Loan Servs of Nebraska (115 KB)  and pdf Mills v. U.S. Bank Nat’l Ass’n (52 KB) , for the premise that “ … [MERS] may validly serve both as the holder of ‘bare legal title as mortgagee of record’ and as ‘nominee for the member-noteholder.’’’ Justice McDonough also recognized that MERS did not need to possess an interest in the note in order to be the mortgagee or assign its interest.

“Massachusetts courts are ruling consistently that MERS may validly serve as both the mortgagee of record and the nominee for MERS® System member note holders,” 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


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.


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