Michigan is no longer alone in suing lenders and banks for failing to pay title transfer fees, as two counties in two other states have now filed similar lawsuits. Dallas County, Texas and Christian County, Kentucky have now filed lawsuits similar to suits filed by Curtis Hertel, Jr., the Ingham County Register of Deeds, and Oakland County Treasurer Andy Miesner.
“„The county said that through MERS, notes and mortgages are being “sold, assigned or transferred” without being recorded in county deed records. The defendants “misrepresented the true beneficial owner of notes and related mortgages filed by them in Dallas County, Texas, for the purpose of avoiding the recordation of subsequent transfer and payment of attendant filing fees.”
“„Watkins, 43, is seeking reimbursement for fees lost, punitive damages and a judgment of $10,000 a violation.
“„He asked the court to find that a violation of the Texas code occurred each time MERS was identified as a mortgagee or beneficiary under a deed of trust when it had no interest in the note secured by that deed. According to the complaint, MERS was the “grantee” in 157,319 records in Dallas as of Sept. 11.
“„The lawsuit also seeks a court order preventing the defendants from filing anything in deed records that identified MERS or anyone as a beneficiary who doesn’t have an interest in the secured note. The county said Bank of America “knew or should have known” the MERS system would cause improper filing.
“„The Kentucky suit seeks compensatory and punitive damages and an injunction ordering defendants “to immediately cease the practice of nonrecording of assignments of mortgages.”