Ramsey, Hennepin Counties sue mortgage registration service
ST. PAUL, Minn. – Minnesota’s two largest counties have joined together to file a lawsuit against the Mortgage Electronic Registration Service, Inc. (MERS) on behalf of taxpayers and all other counties in Minnesota, alleging that MERS has likely deprived states and counties of somewhere around $7.2 billion nationally.
Established in 1995 by many of the nation’s largest mortgage lending institutions, the plaintiffs say MERS was formed to create a semi-private system for MERS members to quickly and cheaply assign their mortgages to one another.
Unfortunately, says the office of Ramsey County Attorney John Choi, this came at the expense of the integrity of our public land records and of county taxpayers in lost recording fees.
The Complaint filed Friday in Ramsey County Court seeks to require MERS and its members to follow Minnesota law and properly record each mortgage assignment with the county recorder/registrar of titles and to recover the recording fees MERS and its members deliberately avoided paying by refusing to record these assignments.