NYAG Files Suit Against Banks and MERS

On February 3, 2012, New York Attorney General Eric Schneiderman filed suit against JPMorgan Chase, Bank of America, Wells Fargo, the Mortgage Electronic Recording Systems, Inc. (MERS), and others, alleging that the use of MERS has facilitated fraudulent and deceptive foreclosures in New York. The NYAG alleges that MERS has effectively eliminated the public’s ability to monitor property transfers through public records, and that employees at the named banks, acting as MERS “certifying officers,” initiated faulty and deceptive foreclosures in MERS’s name. The suit seeks a declaration that the alleged practices violate the law, injunctive relief, damages for harmed homeowners, and civil penalties, as well as a court order requiring the defendants to cure any title defects and clear any improper liens that resulted from these practices. Complaint.