Aurora

New Hampshire Court Upholds MERS’ Authority to Transfer Mortgage Interests

On February 14, 2011, the New Hampshire Superior Court upheld the authority of the Mortgage Electronic Registration Systems (“MERS”) to assign its interest in a mortgage. Plaintiffs sought injunctive relief to prevent servicer Aurora Loan Services LLC (“Aurora”) from proceeding with a foreclosure sale of Plaintiffs’ residence, arguing that MERS, as nominee, lacked the authority to assign its interest in the mortgage to Aurora, thereby invalidating Aurora’s ability to foreclose or collect on the mortgage. In denying Plaintiffs’ request for injunctive relief, the Superior Court rejected the plaintiffs’ argument that the use of MERS as nominee in and of itself was either “fraudulent or wrong.” Looking to the mortgage instrument signed by the plaintiffs, the Superior Court then found that the plaintiffs had explicitly granted MERS the authority to assign its interest, and held that MERS’ assignment to Aurora was valid. Decision.