Floyd County joins others looking to recover lost mortgage fees
Floyd County will soon be looking to recoup unpaid mortgage filing fees, believed to run into the hundreds of thousands of dollars. The Floyd County Fiscal Court voted last week to join with other counties to sue Mortgage Electronic Registration Systems and its affiliated financial institutions. The court believes MERS and its affiliated banks skirted requirements to file mortgage assignments, resulting in lost revenue for the county.
Under Kentucky law, mortgage assignments are supposed to be filed with the county clerkâ€™s office whenever a mortgage changes hands. According to County Attorney Keith Bartley, however, many of the banks affiliated with MERS failed to do that by trading mortgages electronically, thereby cutting the county out of fees associated with the filing.