by Andrew J
Attorney General Eric T. Schneiderman of New York sued Bank of America, Wells Fargo, and JPMorgan Chase in New York Supreme Court in Brooklyn. Mr. Schneiderman is the co-chairman of the new mortgage crisis unit formed under the Obama administration. The database is called the Mortgage Electronic Registration System or MERS. It was created in the mid-1990s for tracking mortgage ownership. It is a collaboration of top mortgage servicers, mortgage insurers and Fannie Mae and Freddie Mac, the government entities that hold many of the country’s mortgage. With MERS, these mortgage companies saved billions of dollars by avoiding public recording fees.The lawsuit asserts that the database is inaccurate and seeks to stop banks from filing foreclosure actions through MERS and executing false and/or defective mortgage assignments.
This is an example of large Companies utilizing enormous databases. This massive database allows the banks to keep tabs on all mortgages that they service. Everyone that has a mortgage with these banks has their information in this database. Though it is bad that these banks decided to create false or defective mortgage assignments, the database in itself is quite impressive. The idea of creating it allows these banks to save billion dollars by avoiding the payment of public recording fees. Not to say that the banks did the right thing, but the fact that they came up with this idea is quite ingenious.