The Utah Court of Appeals has agreed with a lower court that CitiMortgage Inc. and Mortgage Electronic Registration Systems Inc. (MERS) may legally foreclose on a home in Eagle Mountain, Utah. Attorneys in Utah and elsewhere have argued that MERS cannot legally foreclose because it does not have a financial interest in the mortgages or because it cannot prove it is acting as the agent of the pools that actually own the notes.

The decision could affect dozens of lawsuits filed in Utah over home foreclosures. “This ruling will be brought to the attention of the trial judges in each of those lawsuits, and claims based on the theories rejected in our case should be dismissed,” said Ballard Spahr attorney Anthony C. Kaye, who represented CitiMortgage and MERS. He added that he believes that the decision could discourage others from filing lawsuits seeking to nullify trust deeds.