U.S. Bank National Association has asked U.S. District Court to hear a class-action suit, filed by Washington County on behalf of all counties in the state, over the association's failure to use the recorder of deeds offices to record mortgages, denying counties the related fees.
Washington County first took the case to Washington County Court, but the bank is now seeking a change in jurisdiction. The county alleges that more than $100 million has been lost in recording fees by all 67 counties in the state.
The county alleges U.S. Bank National Association, as trustee for various residential mortgage-backed security trusts, violated state law by failing to record "each and every mortgage transfer."
The bank instead used a private entity, Mortgage Electronic Registration Systems Inc., for recording, "thereby depriving Washington County of the accompanying recording fees" for 15 or more years.
Washington County Recorder of Deeds Debbie Bardella said U.S. Bank would file the original mortgage, but list Mortgage Electronic Registration Systems Inc. as the mortgagee.
"Banks did not file subsequent assignments," Bardella said. "When people go to foreclose or take action on these properties, they don't really know who the lender is because action was taken without us seeing the full picture.
"The recorder's office is not getting all the documents. I have no way of knowing how many times this mortgage has changed hands. It has caused a lot of heartache and headaches for the individual and the county has lost all that revenue because they're not filing all the paperwork here."
Washington County is also seeking attorneys' fees, which, in a class-action suit, could be as much as 30 percent of a judgment.
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