Superior Court rejects challenge after challenge to MERS’ authority to hold, assign, or foreclose
FOR IMMEDIATE RELEASE
CONTACTS: Jason Lobo
Reston, Virginia, July 5, 2012–Rhode Island Superior Court Justice Allen P. Rubine issued eight decisions from April to June that dismissed wrongful foreclosure and other claims against Mortgage Electronic Registrations Systems, Inc. (MERS) and other defendants.
In each of the eight rulings below, Justice Rubine repeatedly rejected the plaintiffs’ various allegations, including MERS’ supposed lack of authority to foreclose mortgages in its name, and its inability to assign those mortgages. Citing previous decisions in Kriegel v. MERS, Breggia v. MERS, and Payette v. MERS, Justice Rubine ruled instead that MERS is a valid mortgagee under Rhode Island law with the authority to act on behalf of the current note owners, including assigning and/or foreclosing the mortgages MERS holds as mortgagee on the properties.
“Rhode Island case law has been consistent when it comes to MERS’ role as mortgagee,” said Janis Smith, MERSCORP’s Vice President for Corporate Communications. “As Justice Rubine has demonstrated, challenges to MERS’ authority to act on behalf of the lender—including the company’s right to execute the assignment or foreclose—will only be met with rejection.”
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 approximately 3,000 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(s) 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.