Biden's office settles mortgage registry lawsuit

There are signs that progress is being made to help the crisis.

July 13, 2012 8:27:35 AM PDT
The Delaware attorney general's office is dropping a deceptive trade practices lawsuit against a company that runs a nationwide electronic mortgage registry.

Attorney General Beau Biden announced a settlement with Virginia-based Mortgage Electronic Registration Systems Inc. on Friday.

The settlement was reached after a judge expressed skepticism about the state's claims at a May hearing on MERS' motion to dismiss the lawsuit.

Biden's office argued that the registry is riddled with inaccuracies that raise questions about the rights of homeowners facing foreclosure, including trying to find out who owns the underlying loan.

MERS argued that state officials can't point to any deception of consumers because the registry operates solely for the benefit of the financial institutions who are its members and does not provide any goods or services to homeowners.