Bankruptcy Appellate Panel Affirms MERS’ Role


Reston, Virginia – January 09, 2012 – (RealEstateRama) — MERSCORP Holdings, Inc. today announced that the United States Bankruptcy Appellate Panel of the Tenth Circuit held that Mortgage Electronic Registration Systems, Inc. (MERS) is a mortgagee in its capacity as nominee for the lender and its successors and assigns, that there is nothing impermissible in this arrangement and that “[a]t all times, the Note and Mortgage were united.”

In the case, In re Trierweiler, the Panel’s decision, written by U.S. Bankruptcy Judge Dale L. Somers of the District of Kansas and joined by Chief Judge William T. Thurman of the District of Utah and Judge Elizabeth E. Grown of the District of Colorado, rejected the Trustee’s notion that MERS’ involvement in the transaction rendered the mortgage unenforceable and the Note unsecured and affirmed a decision rendered by the U.S. Bankruptcy Court for the District of Wyoming.

“The Trustee has pointed to no Wyoming authority that prohibits the loan originator from agreeing to have someone other than the beneficial owner of the debt hold the mortgage and enforce the debt as its agent,” Judge Somers wrote. “We conclude that there is no split between the Note and Mortgage arising from MERS being named as Mortgagee….” The Trustee has appealed the decision to the U.S. Court of Appeals for the Tenth Circuit.

“We are pleased that the Appellate Court Panel affirmed the bankruptcy court’s decision,” MERSCORP Holdings Director of Communications, Jason Lobo, said. “As this decision and the cases to which it cites demonstrate, the ‘split-the-note’ theory has failed time and again.”

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


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.

Jason Lobo
Phone: 703.652.1660

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