Judge Declares “Plain, Unambiguous Language of the Mortgage” Grants MERS Authority
Reston, Virginia – April 10, 2013 – (RealEstateRama) — MERSCORP Holdings, Inc. today announced that Rhode Island Superior Court Justice Allen P. Rubine has rejected another multi-count claim of wrongful foreclosure against Mortgage Electronic Registration Systems, Inc. (MERS) and other member co-defendants.
In Van Hoecke v. First Franklin Financial Corporation, Justice Rubine issued a ruling that parallels others he has made during the past year. His ruling established that the “facts in this complaint were ‘nearly identical’ to those in Payette v MERS” and adopted its prior reasoning to apply here.
“It is well-established that MERS and an assignee of MERS…may properly invoke the statutory power of sale as granted to the mortgagee by the plain, unambiguous language of the Mortgage,” Justice Rubine held. “Plaintiff, through her acknowledgement and execution of the Mortgage, explicitly granted to MERS, and to the successors and assigns of MERS, the right to exercise the statutory power of sale and to foreclose on the Property.”
“Justice Rubine’s rulings have been quite clear,” MERSCORP’s Director for Corporate Communications Jason Lobo said. “MERS’ authority as mortgagee is valid and legal in Rhode Island, and challenges to this authority continue to be rejected.”
Justice Rubine also noted that even if the Plaintiff had proper standing to present a legal challenge to MERS regarding the validity of the mortgage assignment, “it conforms to the statutory form of assignments of a mortgage interest” according to Rhode Island law.
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. It is a member-based organization made up of 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.