Bloomberg-
Mortgage Electronic Registration Systems Inc. and lender U.S. Bank NA were sued by an Illinois man who claims they have contributed to a statewide degradation of real property records.
Charles E. Daniels, a homeowner in suburban Hoffman Estates, filed a complaint today in state court in Chicago, seeking an order that would block banks from using MERS in lieu of publicly recording loan-related documents.
MERS and its co-defendant and corporate parent Merscorp Holdings Inc. operate a privately-managed database through which lenders can convey mortgage interests without having to record a corresponding document with a public recorder’s office, where MERS may be listed as the lender’s “nominee.”