Decision affirms that mortgage confers broad powers to MERS
Reston, Virginia – March 15, 2011 – (RealEstateRama) — The Supreme Court of the State of New York, County of Bronx on March 3 held that the mortgage document granted broad powers to MERS to act as an agent for the lender, including the power to foreclose on the loan and to assign it.
In Bank of New York v. Sachar, the court found in favor of the lender and said that the Bank of New York Mellon has standing to foreclose based on the MERS assignment and the delivery of the note. In his ruling, Judge Lucindo Suarez concluded that the bank showed sufficient documentation to prove its standing.
“Plaintiff has shown that the assignment of the mortgage was not made retroactively,” wrote Judge Suarez. “Although the assignment refers only to an assignment of the mortgage, physical delivery of the note is sufficient to transfer the obligation, and plaintiff has established that the note was delivered to it prior to the commencement of this action.”
“The New York Supreme Court has acknowledged MERS’ broad powers to act on behalf of a lender,” said MERS spokesperson Karmela Lejarde. “Judge Suarez’s ruling supports MERS’ role as the mortgagee holding a legal interest that can be conveyed through an assignment of the mortgage.”
This year alone, the standing of MERS to act as the mortgagee and nominee for the lender have been similarly validated in courts in California, Georgia, Kansas, Massachusetts, Michigan and New Hampshire.
A copy of the ruling can be obtained by emailing a request to Karmela Lejarde.
Contact:
Karmela Lejarde
703-761-1274
