A.G. Sues Banks Over Their Use of MERS Electronic 'End-Around'

, New York Law Journal


In his latest broadside against the banking industry, Attorney General Eric T. Schneiderman is alleging that the nation's largest banks use the Mortgage Electronic Registration System to evade public filings, shortchange localities of $2 billion in fees and compromise the interests of homeowners.

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What's being said


    What a grandstand play for unnecessary and vexatious litigation and political aggrandisement. The County Clerks were way behind (overworked, their unions asserted) and accordingly very slow in filing title and lien documents.. The system had become unreliable, and still the clerks were demanding more money and new hires to assist them. And the banks were not the only beneficiaries of the MERS system which also saved the public money. If the Banks and lenders chose a nominee vehicle in which to place and transfer their titles and liens, what of it. Did anyone have a vested interest in determining ownership besides the banks? No one ever said or mandated that titles and liens were to be "open" or "transparent". And the filing fees (paid in main by consumers) have become onerous if not outrageous, with no end in sight; another tax out of control. This writer hopes that a competent and impartial judge has the ability and intellect to see this baseless suit for what it is, and throws it out on a summary judgment motion. This is not the time of King Henry and the Statute of Uses. Or is it?

  • Robert A.

    It is about time, perversion and secrecy. These obligations are shouldered by the taxpayer through the FHA guarantees that provide security to the banks.It is hard to comprehend why the right of an open transaction and due process are so blindly disregarded. Unfortunately in many instance struggling homeowners attempting to make a deal with these entities find no recourse and no reasonable means to resolve and forestall recovery. Not only is this out of character with the rest of the lending industry that operates under the process of settling even in a consumers darkest hour, these basks choose not to and why should would they a mortgage is the only transaction that the level of interest paid will exceed the principal balance, not one time but for most homeowners two times.You would think that level of profitability might give you some leeway. ayalatax.com

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