New York Sues MERS, Members
New York's attorney general has filed a lawsuit against the three biggest lenders and the Mortgage Electronic Registration System Inc. alleging that the registry is a sham designed to deceive borrowers and the public and avoid recording fees. The state wants the system declared illegal and all resulting title defects cured.

Survey: Strip Off Jr Liens in Chapter 13 BKs
A majority of people in the legal community believe that a borrower should be able "strip off" a junior-lien mortgage in a bankruptcy payment plan even if the bankruptcy is not discharged.

Class Action Targets NV Foreclosure Processors
Six companies that process foreclosures in Nevada have been named as defendants in a lawsuit that seeks class-action certification.

States Face Servicer Settlement Deadline
State attorneys general have been given a deadline of this week to decide whether or not they are on board with a proposed settlement with the nation's biggest mortgage servicers.

Servicers Navigate Courts
While foreclosures and loan modifications have been the top stories in mortgage servicer litigation, the firms still face legal actions on other fronts. Among the other issues that the sector is dealing with are flood insurance coverage, homeowners insurance claims and repurchases.

RMBS Fraud Task Force Rapidly Takes Shape
It has only been three days since the Residential Mortgage-Backed Securities Working Group was made public, and several subpoenas have already been handed out.

Proposed Servicer Settlement Not Good Enough for California
The latest rendition of a proposed settlement between servicers and state attorneys general just doesn't cut it, according to California's attorney general.

Litigating Secondary Trades
Several recent lawsuits tied to secondary marketing involve criminal activity. The alleged schemes often involve selling loans that are lower quality than what is being marketed, while other cases involve trading mortgages that didn't even exist.

Critics Question Timing of RMBS Fraud Unit
Critics of President Barack Obama's plan to create a special unit of federal prosecutors and state attorneys general say that such a move should have been done early on in his presidency and not now, long after the events were fresh in the minds of potential witnesses.