A Federal Judge has decided in favor of Montgomery County recorder of deeds Nancy Becker in a class action suit she filed against the mortgage industry.
The ruling says the Mortgage Electronic Registration System set up by banks and other financial institutions two decades ago violates a state law that requires all mortgage assignments to be filed at the county level. Becker says the private, members only registry has cost the county millions of dollars but it’s about more than just the money:
“It’s the integrity of the public record that we really want to protect, to make that at any given time, that a person can look at a property and find out, not only who owns it, but who is holding the paper on it.”
Becker says the mortgage industry registry creates confusion and has resulted in unnecessary foreclosures as banks sell mortgages to other financial institutions but the homeowner continues to pay the original lender.