Georgia Court of Appeals Validates MERS’ Role and Authority


Reston, Virginia – April 17, 2013 – (RealEstateRama) — MERSCORP Holdings, Inc. today announced that the Court of Appeals for the State of Georgia has ruled in favor of Mortgage Electronic Registration Systems, Inc. (MERS) and other defendants, by affirming two separate lower court decisions that had rejected allegations of wrongful foreclosure.

In Montgomery v. Bank of America, N.A., a majority opinion written by Judge William M. Ray II and joined by Presiding Judge Herbert E. Phipps, Presiding Judge Gary Blaylock Andrews, Judge Elizabeth L. Branch, Presiding Judge Sara L. Doyle and Judge Michael P. Boggs found that “…the security deed expressly conveyed title to the interests in the security deed to MERS, gave MERS the right to invoke the power of sale, and authorized MERS to assign its rights and interests in the security deed…” The majority also held that Georgia law does not require that a foreclosing entity must possess the promissory note to foreclose. Judge M. Yvette Miller dissented on procedural grounds.

In Larose v. Bank of America, N.A., a majority opinion written by Judge Carla Wong McMillian and joined by Presiding Judge Anne Elizabeth Barnes, Judge Elizabeth L. Branch, Presiding Judge Sara L. Doyle, and Judge William M. Ray II, held that “we are bound by the reasoning in this Court’s case of Montgomery v. Bank of America…issued today on this very issue.” Montgomery, the panel wrote, “holds that nothing in Georgia law requires that an assignee of a security deed granting the right to foreclose must also hold the note before initiating foreclosure proceedings.” Judges Christopher J. McFadden and M. Yvette Miller dissented from this decision on procedural grounds.

“We are pleased that the Georgia Court of Appeals has affirmed the judgments of two lower court decisions and thus validating MERS’ role and authority,” MERSCORP’s Director for Corporate Communications Jason Lobo said.

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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