Merscorp Inc. and three Texas counties said they are close to reaching a partial settlement of a lawsuit accusing the mortgage registry of shortchanging local governments on filing fees.
Merscorp said in a joint filing today with Dallas, Harris and Brazoria counties in federal court in Dallas that they “have reached a tentative framework for partial settlement that would obviate the need for trial on many of the issues currently before the court.” They asked the court to put proceedings on hold for 30 days so they can complete an agreement.
Dallas County filed the initial complaint in 2011, alleging that Merscorp’s MERS registry was established by banks including Charlotte, North Carolina-based Bank of America Corp. (BAC:US) to avoid paying filing fees as well as to ease transfers of mortgages. Bank of America is also a defendant in the case.
Stephen Malouf, a lawyer representing Dallas, Harris and Brazoria counties, didn’t immediately respond after regular business hours to a phone call seeking comment on the filing.
Thomas Hefferon, a lawyer for Bank of America, and David Levy, a lawyer for Merscorp, also didn’t immediately respond after regular business hours to phone calls seeking comment.
The case is Dallas County v. Merscorp Inc., 11-cv-02733, U.S. District Court, Northern District of Texas (Dallas).
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