Following up on a previous blog, the New York State Attorney General’s Office filed a complaint on February 3, 2012 against the Mortgage Electronic Registration System (“MERS”) and several large investment banks alleging, among other things, that the institutions engaged in deceptive practices in foreclosure actions throughout the state through their usage of MERS; including initiating said actions without the requisite legal authority. A little more than a month later, JP Morgan, Bank of America, Wells Fargo and Citigroup agreed to pay $5.9 million, and Ally Financial agreed to pay $1.25, to partially settle the suit. As per the terms of the settlement, none of the above banks admitted to engaging in deceptive practices, nor did they deny that they did not.

We will continue to monitor and update you accordingly, as the New York State Attorney General’s Office will continue its case in an effort to obtain damages related to the banks' use of MERS.

Real Estate Broker and Salesperson violations are now published by the New York State Department of State and can be found by a search on their website. CLICK HERE for access.

In the past, licensing settlements, contained in consent orders, were kept private. Previously available for public viewing were decisions on adjudicated licensing issues, pursuant to a “hearing” with an administrative law judge on the same. Now, consent orders are also available for viewing, which are settlements between the broker/agent and the State. Yet, the initial complaints and other documents are still kept private and are unavailable to the public by way of an online search.

This newsworthy happening may create a benefit to New York State Brokers and Salespersons. The now-public consent orders make many more prototypes of licensing violations available. Specifically, brokers and agents should use the same to their advantage by reviewing such decisions and consent orders to enable them to know “what not to do” in practice.

The fee that Suffolk County charges for verifying that the description of real property being bought, sold, mortgaged, etc. corresponds to the tax map numbers to which it has been identified has been increased from $30 to $60 effective April 2, 2012.

This is a mandatory fee for recording and will increase the cost of all real estate transactions within the County. Previously, the fee was $30 for the first and $20 for additional verifications.

To learn more about what verification is in Suffolk County, click here.

In December of 2011, the previous County Executive vetoed this legislation. To read the veto and the legislation, click here. Now, its enacted.