Editor: David Reiss
Brooklyn Law School

March 27, 2013

Connecticut Superior Court Recognizes MERS’ Status as Mortgagee and MERS’ Subsequent Assignee

By Gloria Liu

In LaSalle Bank v. Johnson, No. CV‐085016113, 2009 WL 2872844 (Conn. Super. Aug. 10, 2009), the court recognized MERS’ status as mortgagee and MERS’ subsequent assignment of the mortgage. Fremont Investment & Loan loaned Ronald Johnson $192,000.00. To secure a loan from Fremont Investment & Loan, homeowner gave a mortgage to MERS. A foreclosure action against the homeowner was then commenced for unpaid water and sewer services and a judgment of foreclosure by sale was obtained. In that case, Fremont was named as a defendant but MERS was not. During the foreclosure sale, JMP emerged as the successful bidder and the deed was recorded under JMP. After the judgment of foreclosure by sale, MERS assigned its mortgage to LaSalle Bank. The court held that as assignee, LaSalle had standing to not only bring an action to foreclose its mortgage but it also entitled to summary judgment. Therefore, it upheld LaSalle’s contention that due to WPCA’s failure to name MERS as a party defendant, LaSalle is an omitted party and did not have its mortgage extinguished by the prior foreclosure action by WPCA and therefore, has standing to bring an action against JMP.

| Permalink