New York AG Sues MERS, Banks Over Foreclosures
New York AG Sues MERS, Banks Over Foreclosures
New York Attorney General Eric Schneiderman has filed a lawsuit against the Mortgage Electronic Registration Systems and three big banks, alleging errors in the handling of foreclosures.
Schneiderman says 13,000 foreclosures in New York were handled using the MERS system.
"MERS' indiscriminate use of nonemployee certifying officers to execute vital legal documents has confused, misled, and deceived home owners and the courts and made it difficult to ascertain whether a party actually has the right to foreclose," the lawsuit alleges.
A company spokeswoman for MERS, however, says the company has done nothing wrong and has followed the laws.
"Federal and state courts around the country have repeatedly upheld the MERS business model, and the validity of MERS as legal mortgagee and nominee for lenders," MERS spokeswoman Janis Smith told HousingWire. "We refute the attorney general's claims and will defend the case vigorously in court."
The banks named in the lawsuit were Bank of America, JPMorgan Chase, and Wells Fargo. The banks have declined to make a public comment about the lawsuit.
Recently, Massaschusetts’ attorney general also filed a lawsuit against MERS and other big banks for the handling of foreclosures.
Source: “NY AG Sues Big Banks, MERS for Mishandling Foreclosure Documents,” HousingWire (Feb. 3, 2012)
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