Pennsylvania Court of Common Pleas Grants MERS Motion for Summary Judgment
CONTACT: Janis Smith
MERS has Full Legal Authority to Act as Mortgagee
Reston, Virginia, August 20, 2015—MERSCORP Holdings, Inc. today announced that the Court of Common Pleas of Lackawanna County, Pennsylvania dismissed a quiet title lawsuit affirming the validity of the mortgage with Mortgage Electronic Registration Systems, Inc. (MERS) as the mortgagee and recognizing MERS’ standing to defend its interest in the mortgage.
In pdf Marjer, Inc. v. Poplawski, (1.90 MB) the plaintiff purchased property that was subject to a prior, unsatisfied mortgage with MERS as the mortgagee by the prior owner and immediately filed a quiet title action alleging the deed to the property divested any claims MERS had in the property.
Judge Richard N. Saxon, Jr. rejected the plaintiff’s claims, holding “... the mortgage expressly provides that MERS, as mortgagee of record and nominee for the originating lender, has full legal authority to act as a mortgagee.” The opinion continues, “This Court believes this includes the ability to defend against a quiet title action that is seeking to extinguish the mortgage for which MERS is the nominee.”
Additionally, the Court held that the mortgage expressly names MERS the mortgagee of record with the full legal authority to act as mortgagee. It continued by citing recent cases that held that “MERS has the authority to assign a mortgage.” See: pdf Deutsch Bank Trust Co. v. Kravitz (130 KB) and pdf Bank of America v. Blair (314 KB) . These cases further held “… MERS has authority to act as mortgagee under Pennsylvania law, even though it was identified by the mortgage as a nominee.”
“We are pleased that the Court emphasized prior holdings recognizing MERS’ authority to act as mortgagee under Pennsylvania law,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “MERS has legal authority to act on behalf of the lender; this authority is granted by plain language in the mortgage document signed at closing by the borrower.”
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.