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Lost Fees Litigated

Recent activity on fee-related litigation

June 17, 2012

By LISA D. BURDEN MortgageDaily.com


Much of the litigation being filed against the Mortgage Electronic Registration Systems Inc. and its members has challenged the ability of servicers using the registry to foreclose. But a growing number of cases seek to collect lost recording fees. In yet another twist, an Alabama probate judge has taken MERS to court in a class action lawsuit.

Barbour County, Ala., Probate Judge Nancy O. Robertson sued MERSCORP Inc. and MERS in state court claiming that it failed to record certain assignments of interests in mortgages.

The probate judge has to maintain an accurate grantor-grantee index, plaintiffs' attorney Christopher Boyce Hood said in a telephone interview with Mortgage Daily. The MERS model systematically frustrates those laws, he added.

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Lisa D. Burden has been covering mortgage litigation and mortgage legislation for MortgageDaily.com since 2004 from the Washington, D.C., area. She holds a law degree from the University of Maryland. Lisa is the publisher of Maryland Employment Law Reporter and a freelance journalist who previously wrote for Institutional Investor publications and the Baltimore Daily Record.

e-mail Lisa at: burdenlisa@yahoo.com


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