Superior Court of Pennsylvania Affirms MERS’ Authority to Assign Mortgage


Reston, Virginia, – September 2, 2014 – (RealEstateRama) — MERSCORP Holdings, Inc. today announced that the Superior Court of Pennsylvania affirmed the trial court’s granting of summary judgment in favor of the foreclosing mortgage holder and rejected the appellant’s wrongful foreclosure claims

In Bank of America v. Gibson, the appellant mortgagor argued that MERS lacked the authority to assign the mortgage and that Bank of America did not hold the note securing the mortgage. The trial court entered summary judgment in favor of the mortgage holder, which the Superior Court affirmed.

The Superior Court rejected the appellant’s argument that MERS lacked the authority to assign the mortgage, finding that the mortgage expressly granted MERS the right to exercise all of the lender’s interests. In the Court’s memorandum, Judge Victor P. Stabile wrote, “Appellant’s mortgage granted MERS the right to exercise ‘any and all’ interests incidental to legal title. Those rights include the ability to assign the mortgage.”

Additionally, the Superior Court determined that the record in this case clearly demonstrates that Bank of America held the note, negating the appellant’s second argument.

“These holdings are consistent with prior rulings throughout the country that have confirmed MERS’ authority to assign a mortgage,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith. “This authority is established by plain language in the mortgage document signed by a borrower at closing.”

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.

CONTACT: Janis Smith
Phone: 703-738-0230

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