Home Mortgage New York Appellate Court Rules MERS Mortgage Is Valid

New York Appellate Court Rules MERS Mortgage Is Valid

Unanimous Opinion Reverses Trial Court Decision

Reston, Virginia, June 24, 2016—MERSCORP Holdings, Inc. today announced the Appellate Division of the Fourth Judicial Department in New York unanimously overturned the trial court’s order and found that a mortgage for which MERS was the original mortgagee was valid, and granted J.P. Morgan Chase Bank’s (the “Bank”) motion for summary judgment in its’ foreclosure action.

In pdf J.P. Morgan Chase Bank v. Kobee (27 KB) , the New York trial court denied the Bank’s motion for summary judgment to its foreclosure complaint finding that the Bank lacked standing to foreclose as assignee of the MERS mortgage. The trial court further ruled that the MERS mortgage was invalid because MERS never held the related promissory note.

The Appellate Court reversed the trial court’s ruling as to the validity of the MERS mortgage, holding that the trial court “erred in determining that the mortgage is invalid.” The Appellate Court relied on and cited its own earlier decision in pdf First Franklin Fin. Corp. v. Norton (107 KB) and an appellate court decision from the Second Judicial Department, pdf Ruiz v. Mortgage Elec. Registration Sys (74 KB) ., in which the courts affirmed the validity of a MERS mortgage. The Appellate Court also vacated the trial court’s denial of the Bank’s summary judgment motion and granted the Bank’s motion, finding the Bank sufficiently proved its standing to foreclose as holder of the borrower’s note.

“We are pleased that the Appellate Court re-affirmed the validity of a MERS mortgage under New York law,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “The appellate courts in New York routinely recognize MERS’ role as a valid mortgagee as a nominee for the lender, and also recognize that MERS has legal authority to act on behalf of the lender.”

For descriptions of cases and other materials pertaining to MERS’ business model and role in U.S. housing, please visit www.mersinc.org.


MERSCORP Holdings, Inc. is a privately held corporation that owns and manages the MERS® System and all other MERS® products. Users of the MERS® System include thousands of lenders, servicers, sub-servicers, investors and government institutions. Mortgage Electronic Registration Systems, Inc. (MERS) serves as the mortgagee in the land records for loans registered on the MERS® System, and is a nominee (or agent) for the owner of the promissory note. The MERS® System is a national electronic database that tracks changes in mortgage servicing and beneficial ownership interests in residential mortgage loans on behalf of its members.

CONTACT: Janis Smith
Phone: 703-738-0230
Email: janiss (at) mersinc (dot) org