AG Settles Suit Against Mortgage Recording Co.

Kentucky Attorney General Andy Beshear says his office has reached a settlement with a national mortgage recording company that will provide $2.8 million for the state.

Beshear said Tuesday the deal with MERSCORP Holding and its wholly owned subsidiary, Mortgage Electronic Registration Systems, will result in more protections for homeowners.

The suit, filed by Beshear's predecessor, Jack Conway, accused the company of failing to record mortgage assignments with county clerks when mortgages were sold or transferred from one bank to another.

Beshear says the system was created to avoid paying fees.

The company says it does not acknowledge any liability and says the settlement allows it to focus on its business operations.

Beshear urged lawmakers to use the $2.8 million to support affordable housing, legal aid foreclosure work and to help county clerks' budgets.