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» IN THE NEWS Two Minnesota Counties File Suit Against MERS Ramsey and Hennepin counties filed suit against Mortgage Electronic Registration Service, Inc. (MERS), alleging the company violated Minnesota law by not recording mortgage assignments at county recorders' offices and by not paying attendant recording fees, Ramsey County Attorney John Choi announced in February. The civil complaint was filed in Ramsey County District Court. The complaint seeks to require MERS to "properly" record mortgage assignments with the county recorder/ registrar of titles and seeks to recover recording fees. The counties also claim MERS violated Minnesota recording statutes by "deliberately failing to pay county recording fees." The counties further allege MERS has deprived counties and states of around $7.2 billion nationally. "We are taking action today to reclaim and maintain the public's right to property records," Choi stated in the release. "Our counties and taxpayers have suffered significant financial loss due to a backdoor scheme to privatize our public recording system, and we intend to recover that loss." "The public never consented to a system in which some pay recording fees while others do not, and where some property record information is transparently maintained in the county recorder's office while other data is in a privately run database," added Hennepin County Attorney Mike Freeman. In a statement, MERS said it will defend against the complaint, announcing it has "prevailed in similar recording fee cases in Kentucky; Florida; Iowa; Missouri; Hot Springs, Arkansas; and Union County, Illinois." "Use of the MERS system is legal in all 50 states, and MERS complies with Minnesota property recording statutes. Moreover, MERS worked in the past with both the Ramsey County and the Hennepin County Registrars of Titles offices on an amendment to the Minnesota Recording Act that was adopted by the Minnesota Legislature. The amendment, frequently called 'the MERS statute,' went into effect on August 1, 2004, and it clarifies MERS' legal role," the company stated. Edward Jones Mortgage to Close; Cites Regulatory Reform as Reason Citing changes in regulatory reform due to Dodd-Frank as the driving factor, Edward Jones Mortgage, based in St. Louis Park, Minnesota, will close its doors permanently in this month. The company, which reportedly employs 214 people, is a joint venture between San Francisco-based Wells Fargo and Des Peres, Missouri-based Edward Jones. The office has been writing residential mortgages since 1998 and ceased writing them in January. "Regulatory reform stemming from the 2010 Dodd-Frank Act changed the rules for joint ventures of this type," said a spokesperson for Edward Jones. "After discussing how those changes might impact the ongoing joint venture, Wells Fargo has decided to end the agreement," according to a statement from Edward Jones. In a separate statement to sister publication TheMReport.com, Wells Fargo said that it has "decided to dissolve several of its joint venture alliances," but added that it "remain[s] committed to the joint venture business." "The majority of the employees will be permanently laid off as of March 7," according to the company's filing with the Minnesota Department of Employment and Economic Development. Having already ceased writing new mortgages, Edward Jones Mortgage will officially shut its doors April 12. "There will be no impact on existing mortgages sold through Edward Jones Mortgage," according to Edward Jones. Additionally, any applications still making their way through the process "will be completed as normal," the company stated. As for the more than 200 employees being laid off, Wells Fargo said, "We are working with these individuals to help them find opportunities to apply for jobs within Wells Fargo." KNOW THIS The median list price in Minneapolis—St. Paul, Minnesota was $204,900 at the end of February, according to Realtor.com. VISIT US ONLINE @ DSNEWS.COM Mississippi rank: 20 90+ Day Delinquency Rate Foreclosure Rate January 2013 5.65% Unemployment Rate 3.13% 9.3% year ago 5.77% 4.13% 9.4% year-over-year change -2.0% -24.4% -1.1% Top County 90+ Day Delinquency Rate STone CounTy Foreclosure Rate January 2013 5.78% 5.51% year ago 7.10% 6.59% year-over-year change -18.6% -16.4% Top Core-Based Statistical Area ClArkSdAle, MS 90+ Day Delinquency Rate Foreclosure Rate January 2013 8.93% 4.82% year ago 7.78% 4.43% year-over-year change 14.8% 8.9% note: The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the January 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary January 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. IN THE NEWS Freddie Mac Provides Mortgage Relief to Mississippi Storm Victims   Freddie Mac announced it is offering mortgage relief to homeowners who were victims of the storms that swept through Mississippi in February. Only Freddie Mac borrowers in locations declared major disaster areas are eligible for additional relief. Mortgage relief options for eligible borrowers include postponed foreclosure and eviction proceedings for up to 12 months and waived late fees. Forbearance of delinquencies caused by the disaster also won't be reported to credit bureaus. "Freddie Mac is reminding the nation's mortgage servicers they can provide a full range of mortgage relief options to affected borrowers with mortgages we own or guarantee (or use owned or guaranteed by Freddie Mac), including forbearance on mortgage payments for up to one year," said Tracy Mooney, SVP of single-family servicing and REO at Freddie Mac. 97

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