WILMINGTON, Del. — A company that runs a nationwide electronic mortgage registry is asking a Delaware judge to dismiss a deceptive trade practices lawsuit filed by the Delaware attorney general’s office.
A judge on Wednesday heard a motion by Virginia-based Mortgage Electronic Registration Systems to dismiss the lawsuit, which MERS says is meritless.
State officials sued MERS last fall, saying it has sown confusion among consumers, investors and other stakeholders in the mortgage finance system and damaged the integrity of Delaware’s land records system.
An attorney for MERS argued that the state has no basis to accuse it of deceptive trade practices. Attorney Colm Connolly says under state law deceptive trade practices must involve interference with a competing business and allegations of confusing or deceptive advertising, neither of which applies to MERS.