New Hampshire is the fifth state to uphold the authority of the Mortgage Electronic Registration Systems
to transfer its interest in a mortgage.
MERS said the Superior Court of New Hampshire ruled two weeks ago in favor of Aurora Loan Servicing
in a case against a homeowners, John Powers and Rose Powers, who claimed MERS lacked the authority to assign their mortgage.
"MERS' status as nominee allows it to perform its core function of facilitating the tracking of mortgages," wrote Judge John Arnold of the Cheshire County Superior Court. "Contrary to plaintiff’s assertions … the use of MERS as nominee is in and of itself neither fraudulent nor wrong."
Judge Arnold also said "the language in the mortgage document clearly stated that the plaintiffs had specifically conveyed the mortgage to MERS and its successors and assigns," according to MERS.
MERS spokesperson Karmela Lejarde said the company is "confident that this court’s decision will further solidify our status as the mortgagee in the mortgage."
In recent weeks, courts in Massachusetts, Kansas
also validated MERS' authority to transfer mortgages, and Lejarde said MERS is readying a press release for another ruling in MERS' favor for a case in Georgia.
Earlier in February, a New York court ruled that MERS doesn't have the right
to transfer the mortgage.
Write to Jason Philyaw