The County of Washington, Pennsylvania has filed a class action lawsuit on behalf of Pennsylvania's 67 counties, seeking to recover unpaid fees from U.S. Bank National Association.
The Complaint alleges that U.S. Bank created mortgage-backed securities trusts, and earned millions of dollars, by telling the public that it held mortgages secured by real property in Pennsylvania as allowed by Pennsylvania law. However, the Complaint alleges that the mortgages were recorded in the name of the Mortgage Electronic Registration Systems, Inc. ("MERS") and assignments to U.S. Bank had not been recorded. Washington County's Complaint demands that U.S. Bank either pay for the privilege of representing to investors that the loans in its trust had priority over subsequent liens or lose that right.
According to Gary E. Mason, an attorney representing Washington County, Pennsylvania counties are owed more than $100 million in recording fees that were not paid by U.S. Bank National Association and other financial institutions that relied on their membership in MERS to avoid paying these fees.
Washington County is represented by Gary E. Mason, Whitfield Bryson & Mason, Jonathon W. Cuneo, Cuneo Gilbert & LaDuca, and Aaron Rihn, Robert Pierce & Associates, P.C.