Oregon Counties Announce $50M Lawsuit Against MERS

Eleven Oregon counties are teaming up in a $50 million lawsuit that charges the Mortgage Electronic Registration Systems (MERS) with unpaid recording fees and circumvention of state law.

According to a report in The Oregonian, the counties are following a lead set in 2012 by Oregon’s Multnomah County, which sued MERS under the argument that MERS’ working model violated state law. That lawsuit was settled earlier this year for $9 million.

In Oregon and other states, foreclosures were frequently initiated in MERS’ name because it was listed as a beneficiary on the deeds filed in county records. That changed in Oregon in 2013 when the state’s supreme court ruled that MERS did not qualify as the beneficiary and could not initiate a foreclosure.

"MERS was taking advantage of our public records system but not paying the fees," said Tom D'Amore, an attorney in Lake Oswego, Ore., that is representing the 11 counties, which include Clackamas, Coos, Crook, Jackson, Josephine, Klamath, Lane, Linn, Marion, Washington and Yamhill.

In response, MERS issued a statement that said it would "vigorously defend this litigation" and that it "complies with Oregon law and all of its recording statutes."