Delaware Court Rules in MERS’ Favor Over Assignment of Mortgage

MERSCORP Holdings gained yet another legal victory earlier this week, this time in Delaware. In a suit brought about by a disgruntled mortgagor over whether or not MERS had the authority to assign a mortgage, a Delaware court ruled in MERS’ favor.
In the case of Albertson vs. BAC Home Loan Servicing, the borrowers challenged MERS’ authority to assign the mortgage to BAC. The Delaware Supreme Court upheld a lower court’s decision that BAC had the authority to foreclose, and they further found that the assignment of the loan by MERS to BAC was legal and complied with Delaware state law.
The Court’s ruling was that MERS was the properly designated assignor of the mortgage and that BAC had the authority to execute the mortgage following the assignment. The Court said the assignment of the mortgage complied with Delaware law because it was notarized and had a credible witness.
MERS has faced many similar lawsuits this year over the assignment of mortgage loans from homeowners facing foreclosure, and courts have repeatedly ruled in MERS’ favor. This year, MERS has won victories in courts in Massachusetts, Rhode Island, Ohio, New Hampshire, Montana, Idaho, Arkansas, and most recently, Texas, have decided in MERS’ favor regarding the assignment of mortgages.


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