Bank of America will face Texas property lawsuit

5 July 2013

A federal judge in the US has ruled the Bank of America must face a lawsuit brought forward by a Texas county over government fees it avoided.

The bank used Merscorp, which owns the MERS system, to track property investments and now US district judge Nelva Gonzales Ramos said the case should go to trial, Bloomberg reports.

Nueces County claims the bank and other members of MERS have caused havoc in the local property records by naming the electronic tracking system as the beneficiary in thousands of mortgage transactions.

As a result of this, the county says it lost out on fees it would have otherwise earned after a property changed hands. It alleges that houses bundled into mortgage securities could have traded dozens of times within the MERS system without the authorities being notified of any change in ownership.

Ms Ramos said she will allow claims against the bank and MERS for fraudulent misrepresentation, unjust enrichment and damages of as much as $10,000 for each violation.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development