BELLEVILLE, Illinois (KMOV) -- St. Clair County State's Attorney Brendan Kelly has filed suit against 22 local and national banks for allegedly failing to pay a required mortgage fee when home loans were bought and sold.
The lawsuit says a system used to track the transfers of loans, The MERS System, elminated the public's ability to see the purchase and sale of properties through the traditional public records system.
'“The system set up by MERS allows financial institutions to avoid transparency in transfer of property and to evade county recording fees which every other citizen has to pay,” Kelly said. "The recorder’s office estimates through this system tens of thousands of transfers of title occurred without proper documentation. Similar actions have been filed across the country, but this is the first filed under Illinois’ strong recording laws."
The lawsuit was filed against Bank of O’Fallon, Compass Mortgage, First Collinsville Bank, FirstCo Mortgage Corporation, First County Bank, Mid America Mortgage Services of Illinois, Mortgage Services III, Midland States Bank, Peoples National Bank, Commerce Bank, Regions Bank, UMB Bank Bank of America, CCO Mortgage Corporation, CITI Mortgage, Corinthian Mortgage Corporation, Everhome Mortgage Company, GMAC Residential Funding Corporation, Guaranty Bank, HSBC Finance Corporation, Suntrust Mortgage, Wells Fargo Bank and WMC Mortgage Corporation.
“We simply want these institutions to follow the law,” said Kelly.