The Mortgage Electronic Registration Systems has standing to foreclosure when MERS is clearly named as the nominee for the original lender, the Connecticut Supreme Court said this week.

The Reston, Va.-based company says the court was asked whether MERS had standing to foreclose as a nominee for the lender in RMS Residential Properties v. Anna M. Miller.

The Mortgage Electronic Registration Systems has standing to foreclosure when MERS is clearly named as the nominee for the original lender, the Connecticut Supreme Court said this week.

The Reston, Va.-based company says the court was asked whether MERS had standing to foreclose as a nominee for the lender in RMS Residential Properties v. Anna M. Miller.

The plaintiffs alleged MERS as a third party could not serve as mortgagee because it was not the lender of the loan or secured by the mortgage. The court held that the mortgage discloses to all parties that MERS is nominated to serve as mortgagee by the lender, according to Merscorp Inc., the parent to MERS.

"The Connecticut Supreme Court's decision affirms that under state law MERS may serve as a mortgagee, and as the mortgagee as the nominee or agent for the lender," said Janis Smith, Merscorp vice president for corporate communications. "The Supreme Court also makes clear that naming MERS as mortgagee is not a basis for voiding a mortgage, and acknowledges that MERS' role is plainly disclosed to borrowers in the mortgage documents they sign at closing."

Write to Kerri Panchuk.