NY Court Upholds MERS Mortgage

The New York Court of Appeals has ruled that the MERS mortgage is a valid method of transferring rights from the borrower to MERS, the industry-owned system for tracking ownership of mortgage loans and servicing rights.MERS reported that the court affirmed the Appellate Division's decision that county clerks must record MERS mortgages, assignments, and lien discharges as required under New York real property law. In a 7-0 decision, the court found that the model MERS mortgage (as well as the mortgage assignment) "satisfies the limited requirements of the recording statute," MERS said. The court also found that MERS lien discharges comply with New York state law. MERS, based in Vienna, Va., can be found online at http://www.mersinc.org.