Appeals Court Rejects Suit vs. Mortgage Company

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A federal appeals court has rejected a lawsuit brought by two Kentucky county clerks alleging that a private company took part in a scheme to avoid paying mortgage registration fees.

The U.S. 6th Circuit Court of Appeals on Tuesday upheld a decision to dismiss the suit brought by the clerks in Christian and Washington counties against MERSCORP Holdings Inc. and Mortgage Electronic Registration Systems Inc.

The county clerks accused MERSCORP and others of not recording mortgage assignments with county clerks when mortgages were sold or transferred from one bank to another.

Judge Helene White wrote that Kentucky law doesn't give the clerks legal grounds on which to sue the company.

The ruling lets stand a decision by U.S. District Judge Joseph McKinley in 2012.

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