Mortgage

Delaware Supreme Court upholds MERS authority to assign mortgage

Continues legal hot streak for MERS

MERSCORP Holdings secured another legal victory against a disgruntled mortgagor who claimed that MERS lacked the authority to assign a mortgage, this time in Delaware.

In Albertson vs. BAC Home Loan Servicing, LP, the borrowers alleged that the assignment of their mortgage from MERS to BAC was invalid. The Delaware Supreme Court issued a ruling that upheld the lower court’s ruling that BAC had the authority to foreclose.

Additionally, the Court also found that MERS’ assignment of the mortgage was valid and complied with Delaware state law.

In the Supreme Court’s order, Justice Henry DuPont Ridgely ruled that the plaintiffs’ claims “lacked merit.” The court also found that assignment by MERS complied with the requirements of Delaware law because it had one creditable witness and was notarized.

The Court found that the record indicated that “MERS was properly designated as the assignor of the mortgage, and BAC assumed the authority to enforce the mortgage upon the execution of the assignment.”

Less than a week ago, MERS celebrated another legal victory in Texas.

In that case, the plaintiffs also questioned MERS’ authority to assign a mortgage in a case related to the origination, subsequent assignment, and attempted foreclosure of a home equity loan.

In its ruling, the Court of Appeals cited its previous ruling Martins v. BAC Home Loans Servicing, L.P, which upheld the validity of a MERS mortgage assignment to a foreclosing entity, stating, “MERS ‘qualifies as a mortgagee’ under Texas law, and we have repeatedly upheld MERS’ assignment of mortgages to other entities.”

MERSCORP Holdings Vice President for Corporate Communications Janis Smith hailed the latest win for MERS.

“We are pleased that the Supreme Court of Delaware has affirmed the lower court’s findings and upheld the validity of the MERS assignment,” Smith said.

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