Kentucky Attorney General Sues MERS

Posted on April 3, 2013

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Attorney General Jack Conway filed a lawsuit in Franklin Circuit Court against MERSCORP Holdings, Inc., and its wholly owned subsidiary Mortgage Electronic Registration Systems, Inc. (MERS) for violations of Kentucky law.

“This process undermines the integrity of Kentucky’s public land records,” Attorney General, Conway said. “Before the bottom fell out of the housing market, banks were bundling and selling loans on the securities market as fast as the ink could dry on the paperwork. When homeowners had trouble paying their mortgages during the economic downturn, they struggled to find out who owned their loans. It made it difficult to find out who to call to request a loan modification or to defend the foreclosure. There is and was no public record of the transfers.”

Conways lawsuit against MERS is supported by Eric Sneiderman, the attorney General of New York. “I commend Attorney General Conway for taking action against MERS,” Sneiderman said. “The banks created this system as an end-run around the public property system and state recording fees. In Kentucky, New York, and across the country, these actions have left financially troubled homeowners in the dark about who owns their mortgages, making the difficult process of negotiating a modification or fighting a foreclosure action even harder. Attorney General Conway’s lawsuit is an important step towards accountability for these abusive practices.”

 
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