Bloomberg-

Bank of America Corp. must face lawsuit claims brought by a Texas county over government fees it avoided by using Merscorp Inc. to track property transactions, a federal judge ruled.

U.S. District Judge Nelva Gonzales Ramos in Corpus Christi said the case should go to trial over most of Nueces County’s claims that the bank and other members of MERS, the electronic mortgage tracking system, have created “chaos” in the local property records system by naming MERS as the beneficiary in thousands of mortgage transactions.

Nueces County, which includes Corpus Christi, claims it was cheated out of fees it should have earned each time a deed was recorded after a property changed hands. The county alleges that properties bundled into mortgage securities may have traded dozens of times within the MERS system without the county being notified of any change in ownership.

[BLOOMBERG]

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