MERS is a holding company with the sole purpose of keeping track of mortgages that are securitized and sold. MERS does not have a board of directors and is not capitalized. This unusual structure makes it difficult for a plaintiff to sue MERS.
Many class actions against MERS have recently been filed across the country. The biggest lawsuit currently facing MERS was filed by the State of California, claiming that MERS owes the state between $60-$120 billion in unpaid land recording fees. The results of this lawsuit will be felt around the country. If California is successful with its action you can bet that many other states will follow suit.
