This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

MERS' Role In Rhode Island Affirmed By State Supreme Court

RESTON, Va., April 12, 2013 /PRNewswire/ -- MERSCORP Holdings, Inc. today announced that a five-justice panel of the Rhode Island Supreme Court held that Mortgage Electronic Registration Systems, Inc. (MERS), being named as the mortgagee as the agent of the promissory note-owner of the mortgage, is consistent with Rhode Island law.

In Bucci v. Lehman Brothers Bank, FSB et al., Justice Francis X. Flaherty, writing for the Court, agreed with the trial justice's reasoning surrounding MERS role as the mortgagee, which held that "the fact that MERS acts in a nominee capacity for the lender and the lender's successors and assigns does not diminish MERS's role as the mortgagee nor is there created a new legal term 'nominee-mortgagee.' " 

In reviewing the language contained in the mortgage, the Court found the language to be "clear and unequivocal" when defining MERS as the mortgagee and agreed with the trial justice's reasoning by finding that "the plaintiffs explicitly granted the statutory power of sale and the right to foreclose to MERS," and therefore that MERS had the "contractual authority to exercise that right."  Supreme Court Justices Maureen McKenna Goldberg, Gilbert V. Indeglia, William P. Robinson III and Chief Justice Paul A. Suttell joined in this opinion.

The justices ruled that none of the plaintiff's myriad arguments held any merit.  "[I]t is our opinion that none of the statutes that plaintiffs rely upon prohibit MERS from foreclosing on the Bucci mortgageā€¦" they held.  The Justices recognized that in the "modern world of lending" it is no longer the case that the mortgagee and the note-holder are always the same entity.  Further, the Court found nothing in the statutes, "despite the feudal roots of these enactments" to "preclude an entity like MERS from acting as the nominee on behalf of the note-owner."  

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs