Clerks: MERS Scheme Costing Millions

“Under established Louisiana law, the transfer of the note includes the transfer of the mortgage,” the clerks told U.S. District Judge James J. Brady in August. They added: “The MERS scheme is merely an artifice to defraud, used to avoid payment of recording fees.”


Clerks: Scheme costing millions

A majority of Louisiana’s district court clerks want a federal judge in Baton Rouge to help them end banking practices they allege have cost them more than $450 million in fees on real estate transactions.

The number of Louisiana state district clerks alleging a racketeering conspiracy by large banks and mortgage companies has jumped from 29 when the lawsuit was filed in April to 47 now. And the big-dollar dispute expanded Monday, when lawyers who represent the clerks filed a similar suit in Texas on behalf of 11 counties.

The clerks in both states allege a racketeering conspiracy by lenders who are members of sister firms Mortgage Electronic Registration Systems Inc., or MERS, and MERSCORP Inc.

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