MERS Wins in New York

December 21, 2006

ALBANY, N.Y.-- The New York Court of Appeals today unanimously ruled that the MERS mortgage is a valid method of transferring rights from the borrower to MERS. The Court affirmed the Appellate Division’s decision that county clerks must record MERS mortgages, assignments and lien discharges as required by New York Real Property Law.

In a 7-0 decision, the Court found that the model MERS mortgage and mortgage assignment “satisfies the limited requirements of the recording statute,” concluding that “the County Clerk must accept the MERS mortgage when presented for recording.”

In addition, the Court also decided that MERS discharges comply with New York law, and that “the County Clerk is required to accept MERS assignments and discharges for recording.”

“This decision reaffirms the legal premise upon which MERS was created,” said R.K. Arnold, MERS President & CEO. “We are happy to have this litigation behind us and we look forward to working with county clerks to deliver the benefits of electronic commerce to homebuyers.”

“MERS would like to thank Fannie Mae, Freddie Mac, the American Land Title Association and the Mortgage Bankers Association,” added Arnold. “Their support and confidence throughout this litigation has been invaluable.”

Source: MERS


Contact ALTA at 202-296-3671 or communications@alta.org.

SoftPro, based in Raleigh, NC, offers a mature suite of products, designed specifically for the closing and title industry. Our mission is to serve our client base, with best-in-class products and services. Our products are modular so we don't force you to buy anything you don't need. You can always add on as your business grows. Unlike other software companies, we view the sale as the beginning of the relationship rather than the end. North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents.