Harris County to sue over mortgage fees
By Mike MorrisHouston and Texas
Harris County Commissioners Court voted Tuesday to sue a mortgage-recording firm the county attorney's office believes owes the county $11 million or more in unpaid filing fees.
Mortgage Electronic Registration Systems Inc., or MERS, was formed by the mortgage-banking industry to "streamline the mortgage process," its website says. When banks sell mortgage loans to other entities, that transaction generally is recorded with the county clerk and requires a fee.
According to County Attorney Vince Ryan's office, MERS helped banks skirt that process, particularly as Wall Street began pooling thousands of mortgages and selling them to investors.
Ryan plans to hire Malouf & Nockels, the law firm Dallas County has hired to pursue a similar suit. Similar lawsuits have been filed in other states.
Dallas County had requested the suit be certified as a class action on behalf of all 254 Texas counties; Harris County hopes to be the lead plaintiff, Ryan said.
MERS has said its "business model and practices are legal and comply with the recording statutes and regulations of Texas."
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