More Courts Upholding Use of MERS

March 17, 2011

A recent legal update shows that in recent weeks more courts are issuing decisions upholding the use of Mortgage Electronic Registration Services, Inc. (“MERS”) as a nominee to transfer promissory notes and security instruments between lenders. One recent case cited in the update is In re: Martinez, No. 10-7027, 2011 WL 489905 (Bankr. D. Kan. Feb. 11, 2011) in which Judge Janice Miller Karlin granted motions for summary judgment filed by MERS and the loan originator, Countrywide Home Loans, Inc., holding that MERS was properly acting as Countrywide’s agent. Similarly, in the case of In re: Lopez, No. 09-10346, 2011 WL 576820 (Bankr. D. Mass. Feb. 9, 2011) Judge William C. Hillman upheld MERS’ assignment of a mortgage as “nominee,” holding that “[t]hough MERS never held the Note, it could, by virtue of its nominee status, transfer the Mortgage on behalf of the Note holder.” The complete legal update is available at:

http://www.mayerbrown.com/publications/article.asp?id=10562&nid=6