MERS’ Role as Mortgagee Upheld Again


Wyoming District Court Agrees: MERS Does Not Split the Mortgage from the Note

Reston, Virginia – November 9, 2015 – (RealEstateRama) — MERSCORP Holdings, Inc. today announced that the U.S. District Court for the District of Wyoming granted a motion to dismiss a wrongful foreclosure suit, holding that use of Mortgage Electronic Registration Systems, Inc. (MERS) as mortgagee of record does not split the mortgage from the promissory note or render the mortgage invalid and the note unsecured.

In pdf Wieloh v. Bank of America, N.A. (849 KB) , the borrower alleged that Bank of America’s predecessor, BAC Home Loans, lacked authority to foreclose because the assignment of the mortgage by MERS to BAC Home Loans did not transfer an interest in the note and therefore rendered the mortgage a nullity.

The District Court granted Bank of America’s motion to dismiss, relying upon the pdf In re Trierweiler (68 KB) and pdf In re Gifford (141 KB) decisions from the U.S. Court of Appeals for the Tenth Circuit. The District Court relied upon the Tenth Circuit Court of Appeals Bankruptcy Appellate Panel’s conclusion in In re Gifford that “[u]nder Wyoming law, a note holder’s use of MERS as the mortgagee on a mortgage does not render the mortgage ineffective or the note unsecured . . . . [And] the mortgage may be freely transferred without becoming [unenforceable].” Finding no Wyoming law to the contrary, the District Court applied the Tenth Circuit’s holdings to the case before it and held that an allegation that MERS splits the mortgage from the note does not state a claim for wrongful foreclosure in Wyoming.

“The decision from the U.S. District Court for the District of Wyoming supports, without question, the conclusion that MERS’ involvement in a mortgage does not split the security instrument from the note,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “This court’s decision joins other similar decisions across the country.”

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.

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