FRANKFORT, Ky. (AP) -- Kentucky Attorney General Jack Conway has filed a lawsuit resulting from his investigation of mortgage foreclosures.
Conway said Wednesday his office sued MERSCORP Holdings Inc. and its wholly owned subsidiary Mortgage Electronic Registration Systems Inc. The lawsuit alleges the subsidiary violated Kentucky law by not recording mortgage assignments with county clerks when mortgages were sold or transferred from one bank to another.
Conway's office says other states have filed similar lawsuits against the subsidiary.
His office says the subsidiary was created in 1995 to allow for the rapid sale and securitization of mortgages and to shorten the time it takes to pursue foreclosure actions. Currently, more than 6,500 members pay for access to the private system. More than 70 million mortgages have been registered on the system.