Massachusetts Appeals Court Upholds MERS as a Mortgagee with the Right to Assign the Mortgage


CONTACT: Janis Smith
Phone: 703-738-0230
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Reston, Virginia, February 24, 2016—MERSCORP Holdings, Inc. today announced that the Commonwealth of Massachusetts Appeals Court, in affirming the dismissal of a borrower’s wrongful foreclosure lawsuit against a loan servicer, upheld MERS’ interest as the mortgagee and the right to assign the interest.

In pdf Hall v. Nationstar Mortgage, Inc (68 KB) ., the plaintiffs claimed that MERS lacked the power of sale because it was not the “mortgagee.” Further, the plaintiff argued that MERS did not have the right to legally assign the mortgage.

The order of the Massachusetts Appeals Court stated, “The contention that MERS was not the mortgagee is belied by the language of the mortgage itself.” The court continued, “Similarly, Hall’s complaint advanced no factual basis for her claim that MERS lacked the power of sale, which was explicitly conferred on it by the terms of the mortgage: ‘MERS (as nominee for Lender and Lender’s successors and assigns) has the right: to exercise any or all of the [the interests granted by the mortgage], including, but not limited to, the right to foreclosure and sell the property.’”

“We are pleased that the Massachusetts Appeals Court recognized that the plain language in the mortgage agreement names MERS as a valid mortgagee with power of sale with the right to assign its interest,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “This court relied on the language in the mortgage and ruled similarly in pdf Shea (31 KB) last year.”


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.