Frequently asked questions

Yes, it enhances the process! MERS System allows you to follow your normal closing procedures while adding efficiency and transparency.

At closing, both the lender and borrower agree to standard, Freddie Mac- and Fannie Mae-approved language in the security instrument that names Mortgage Electronic Registration Systems, Inc. (MERS, wholly-owned subsidiary of parent company MERSCORP Holdings, Inc.) the original mortgagee or beneficiary. After closing, lenders record the security instrument in the public land records and register the loan on MERS System, the national electronic database operated by MERSCORP Holdings that tracks changes in mortgage servicing rights and beneficial ownership interests in loans. Through this role as mortgagee or beneficiary in the security instrument, our Members no longer need to record assignments of the mortgage when ownership of the promissory note or servicing rights transfer between members because the security instrument—the mortgage or deed of trust—remains in the name of MERS.

The following revised MERS as Original Mortgagee (MOM) language must be used on the revised security instrument. After July 2000, only the revised security instrument may be used. Please see Fannie/Freddie Bulletins for further details (April 26, 1999).

"MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS.

NOTE: This is representative language only. Consult official Fannie Mae and Freddie Mac Announcements for specific language for your state. Other changes also may be required in the body of the Deed of Trust or Mortgage.

Lenders may also assign loans to MERS if the loan has already been closed in the lender's name. Once the loan is assigned to MERS using the same paper assignment process as you use now, tracking servicing and beneficial rights can occur electronically for all future transfers. Additional assignments after this point become unnecessary unless the servicing rights are sold to a non-MERS System Member.

In addition to receiving the same benefits as MOM loans, assigning a loan to MERS enables you to become compliant with the requirements of trading partners.

An iRegistration enables companies to take advantage of the fraud and loan tracking benefits of a MERS System registration at a discounted price by registering the loan, but without the requirement of recording MERS as the original mortgagee in the county land records. Benefits of iRegistered-loans include:

No. If MERS was not named as the original mortgagee on the security instrument at the time of closing, you can assign the mortgage to MERS after closing. You may also register your entire portfolio on MERS System to help you streamline your operation by eliminating the need to run dual tracking of mortgages registered, and those not registered. Then, if you decide to sell the mortgage rights, you’ll save the time required to register them on MERS System and prepare an assignment to MERS for a portion of the sale portfolio—speeding the transfer process along the way. In addition, the value of the servicing asset may be enhanced.

No. Multiple lien positions are supported.

No. While the MIN is a unique life of the loan identifier, your organization is under no obligation to abandon use of its loan number system. In fact, you can use your existing loan number wrapped by your unique MERS System Organizational ID (Org ID) and a check digit to generate the MIN. You need to enhance your servicing system to carry the MIN, which is a unique 18-digit identifier. The MIN becomes the vehicle for communicating information with other members of the real estate finance industry without having to resort to elaborate cross-referencing schemes for different loan numbering systems. And since you can assign a MIN for a loan when application is first made by the consumer, you may find that your numbering system is no longer needed.

Yes. MERS can operate within the existing legal framework of all 50 states, either as mortgagee, beneficiary or nominee of the beneficiary.

Membership is open to the real estate finance industry.

To become a MERS System Member, you will need to submit our Membership application and complete the integration process. The process includes completing an information and procedures questionnaire, completing training on the MERS® System, and additional requirements based on membership type.

Please ensure your organization has the necessary resources available to complete your MERS implementation within the next 90 days and gather all required documents prior to beginning the application process.

When ready, click Apply for Membership to begin the online application. A non-refundable application processing fee of $300.00 must be submitted prior to completing your application.

Alternately, you may request to be contacted by a member of our Customer Group prior to applying.

Annual membership fees start at $150, and increase based on your organization’s size and the level of service and access required. Modest transaction fees also apply for mortgage loan registrations. Additionally, a non-refundable application processing fee of $300 must be submitted prior to completing your application. Membership pricing

Your organization signs a standard binding application which sets out the relative rights and responsibilities of all members. The application refers to MERS System Terms and Conditions and its Rules and Procedures, which control the operation of MERS System.

Because predicting the future in the mortgage industry is risky, registering mortgage loans you service on MERS System gives you the flexibility to react quickly to future market changes. Designating MERS as the mortgagee also reduces paperwork by eliminating the need to prepare and record assignments if and when you decide to sell servicing. With MERS as the Mortgagee of Record, you don't need additional assignments.

While it is not required, it would be to their advantage. Capital lenders are urging their correspondents to become members because they prefer the elimination of assignments. But you can instruct correspondents to name MERS as the mortgagee of record on the original assignment without the need for them to become a member.

Designating MERS as the Original Mortgagee (MOM) saves lenders time by eliminating the need to prepare and record multiple assignments as the loan transfers between parties. Because MERS remains the mortgagee of record throughout the life of the loan, lien releases are also faster and more predictable, reducing research time, avoiding assignment‑related delays, and minimizing re‑recording fees.

Lenders who originate for their own portfolio see the same benefits—eliminating the cost of multiple assignments and reducing costs associated with lien release.

For loans registered on MERS System, title companies have a single, electronic source for identifying the current servicer of a loan to obtain payoff quotes and verify that payoff funds have been received, simplifying the entire titlework process.

No. Servicers perform substitution of trustee and satisfactions just as they do without MERS except that they prepare these documents in the name of MERS since MERS is the mortgagee of record.

Yes. All of the major rating agencies (Standard and Poor's, Moody's and Fitch) permit the use of MERS as mortgagee for mortgage loans included in mortgage-backed securities transactions without any additional credit support.