WILMINGTON, Del., July 26 (Reuters) - Mortgage Electronic Registration Systems said it was cooperating with an investigation by Delaware Attorney General Beau Biden.
The Delaware investigation of MERS, a key player in the U.S. mortgage system, follows a Monday announcement by Massachusetts Attorney General Martha Coakley, who said her office had begun investigating MERS for its role in connection with illegal foreclosures. [ID:nN1E76O1K3]
“There isn’t anything specific that we can say; however, we are cooperating with the Delaware investigation,” said Janis Smith, a company vice president, in a statement.
MERS is an electronic-lien registry created by the mortgage banking industry as a way to streamline and speed up the mortgage recording and transfer process.
MERS has been accused of sloppy record-keeping and worse in its massive computer database of U.S. mortgages.
Recent decisions by some state and federal courts have ruled that MERS does not have the right to transfer promissory notes and mortgages.
Biden’s office had no comment. (Reporting by Tom Hals; additional reporting by Ros Krasny in Boston; editing by Phil Berlowitz)