U.S. District Court of Rhode Island Affirms Validity of MERS Assignment


Reston, Virginia, – March 31, 2014 – (RealEstateRama) — MERSCORP Holdings, Inc. today announced that the U.S. District Court for the District of Rhode Island affirms validity of a MERS assignment of mortgage and finds the mortgagor lacks standing to challenge the validity of the assignment because his allegations, at best, simply allege voidable defects.

In Robert W. Clark v. Mortgage Electronic Registration Systems, Inc. et al., the plaintiff claimed that Bayview did not have standing to foreclose on his mortgage because the mortgage assignment from MERS to Bayview was void. Further, he argued that MERS could not assign the mortgage because the signatory to the assignment lacked authority to do so and MERS did not hold both the mortgage and note at the time of assignment.

The Court rejected Clark’s claims as to the signatory’s supposed lack of authority from MERS. “The assignment clearly identifies MERS as the assignor and that [the MERS signatory] signed the assignment as an Assistant Secretary. … Moreover, Mr. Clark has no standing to seek redress for an assignment allegedly made without authority because [the signatory’s] act of signing the assignment, if outside of his authority, is merely voidable and would be actionable by MERS, not by Mr. Clark. [Internal cit. omitted.]”

“The ruling by the Court affirms that MERS, as mortgagee, is the holder of legal title to the mortgage with the authority to make assignments and courts will continue to find the MERS assignments valid,” said MERSCORP Holdings Vice President for Corporate Communications, Janis Smith.

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.

CONTACT: Janis Smith
Phone: 703-738-0230

Next articleRebuilding Together Launches National Rebuilding Month in April