NY's Schneiderman sues banks in foreclosure effort [View all]

[kpete]

NY's Schneiderman sues banks in foreclosure effort

ALBANY, N.Y. — New York's attorney general on Friday accused some of the nation's largest banks of deceit and fraud in using an electronic mortgage registry that he said puts homeowners at a disadvantage in foreclosures.

Democrat Eric Schneiderman sued Bank of America, J.P. Morgan Chase and Wells Fargo over their use of the Mortgage Electronic Registration Systems Inc., or MERS, claiming the banks submitted court documents containing false and misleading information that appeared to provide the authority for foreclosures when there was none.

The lawsuit also names the registry operator, MERSCORP Inc. of Virginia.

Schneiderman claims the MERS system has eliminated homeowners' ability to track property transfers through traditional public records. He said the electronic system now stores that data and is plagued by inaccuracies.

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