A recent Utah Court of Appeals ruling in Commonwealth Property Advocates v. MERS and CitiMortgage is “excellent news for lenders,” said Ballard Spahr partner Anthony C. Kaye. The appeals court agreed with a lower court that CitiMortgage Inc. and Mortgage Electronic Registration Systems Inc. (MERS) could legally foreclose on a home in Eagle Mountain, Utah.

“This ruling confirms what has long been the law in Utah,” said Mr. Kaye, who defended MERS and CitiMortgage in the case. “Just because notes are transferred doesn’t mean they aren’t secured. If we changed that principle, it would undermine our entire financial system. It’s already been weakened, and if that happened, it might very well collapse completely.”