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Tuesday, June 14, 2011

Courts - "NY Appeals Court Clarifies MERS Role in Foreclosures"

Here is the intro to an article today by Brendan Pierson of the New York Law Journal:

The ubiquitous Mortgage Electronic Registration Systems, nominal holder of millions of mortgages, does not have the right to foreclose on a mortgage in default or assign that right to anyone else if it does not hold the underlying promissory note, the Appellate Division, Second Department, ruled Friday.

"This Court is mindful of the impact that this decision may have on the mortgage industry in New York, and perhaps the nation," Justice John M. Leventhal wrote for a unanimous panel in Bank of New York v. Silverberg, 17464/08. "Nonetheless, the law must not yield to expediency and the convenience of lending institutions. Proper procedures must be followed to ensure the reliability of the chain of ownership, to secure the dependable transfer of property, and to assure the enforcement of the rules that govern real property."

The opinion noted that MERS is involved in about 60 percent of the mortgages originated in the United States.

Here is more.

Here, if this works, is the opinion itself:

Bank of New York v. Silver Berg w

Posted by Marcia Oddi on June 14, 2011 02:44 PM
Posted to Courts in general