MERS, U.S. Bank Sued by Illinois Man Over Property Records

Mortgage Electronic Registration Systems Inc. and lender U.S. Bank NA were sued by an Illinois man who claims they have contributed to a statewide degradation of real property records.

Charles E. Daniels, a homeowner in suburban Hoffman Estates, filed a complaint today in state court in Chicago, seeking an order that would block banks from using MERS in lieu of publicly recording loan-related documents.

MERS and its co-defendant and corporate parent Merscorp Holdings Inc. operate a privately-managed database through which lenders can convey mortgage interests without having to record a corresponding document with a public recorder’s office, where MERS may be listed as the lender’s “nominee.”

Daniels said he’s suing on behalf of all other state residents who have obtained a mortgage from the US Bancorp (USB) unit or any other member of the MERS system since 2002.

“As a result of the creation and maintenance of MERS, the public recording system is no longer a reliable source for tracking the chain of title for property,” according to Daniels’ complaint.

Rest here…