“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.