Hogan Lovells Secures Victory in New York Supreme Court Case Upholding Broad Powers for MERS as Lender’s Agent
16 March 2011
NEW YORK, 16 March 2011 – Hogan Lovells announced today that the Supreme Court of the State of New York, County of Bronx found in favor of the lender in Bank of New York v. Sachar. The court held that the mortgage document in question granted broad powers to MERS to act as an agent for the Bank of New York.
The court said that the Bank of New York has standing to foreclose based on the MERS assignment and the delivery of the note. In his ruling, Judge Lucindo Suarez of the New York Supreme Court concluded that the bank showed sufficient documentation to prove its standing.
“The ruling holds that MERS does have authority to transfer mortgages giving the lenders the right to foreclose on those that have been transferred through MERS,” said Allison Schoenthal, a litigation partner at Hogan Lovells. “We are proud to have secured a victory on behalf of our client. This is an important victory for lenders.”
This year alone, the standing of MERS to act as the mortgagee and nominee for the lender have been similarly validated in courts in California, Georgia, Kansas, Massachusetts, Michigan, and New Hampshire.
The Hogan Lovells US LLP team included Allison Schoenthal, David Dunn, Victoria McKenney, and Holly Amorosana.
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