Quality Assurance Procedures Manual

Release 19.05 June 14, 2010Draft

Table of Contents
MERS Quality Assurance Policy 1
Purpose ..................................................................................................................... 1 Strategy ..................................................................................................................... 2 Monitoring ................................................................................................................ 2 Independent Attestation ............................................................................................. 2

MERS Processing Standards

4

Overview ................................................................................................................... 4 MERS as Original Mortgagee (MOM) Security Instrument Processing Standards ..... 4 Non-MOM Security Instrument Assignment Processing Standards ........................... 5 iRegistration Processing Standards ............................................................................ 5 Additional Recordable Documents Processing Standards ........................................... 6 Security Instrument Processing Standards ................................................................. 7 Lien Release Processing Standards............................................................................. 8 Foreclosure Processing Standards .............................................................................. 8 Deactivation Processing Standards ........................................................................... 10 Member Information Update Standards .................................................................. 10 Data Integrity Standards ......................................................................................... 10 Monthly Reconciliation Standards ........................................................................... 13

Appendix A

16

MERS Quality Assurance Review ............................................................................ 16 Checklist Items.................................................................................................. 16 MOM Security Instrument Document Review...........................................................16 MERS Assignments Document Review .....................................................................16 MERS® iRegistrations Document Review ................................................................17 Data Integrity Standards .............................................................................................20 Member Information Standards ..................................................................................20

Appendix B

21

Sample Documents for MOM Loans and Loans Assigned to MERS .......................... 21 Sample Changes to MERS as Original Mortgagee (MOM) Document ....................... 23 Sample Corrective Affidavit for Assignment ............................................................ 24 Sample Corrective Affidavit for Security Instrument ............................................... 25 Sample Loan Security Agreement ............................................................................ 26 Sample UCC-1 Naming MERS as the Original Secured Party .................................. 27 Sample UCC-3 Assigning Security Interests to MERS .............................................. 28 Sample UCC-3 Assigning Security Interests from MERS.......................................... 29 Sample of UCC-3 Termination, When Debt is Paid in Full........................................ 30

Glossary

31

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10 Draft

Table of Contents - i

MERS Quality Assurance Policy
Purpose
MERS provides value to your company by eliminating the need to prepare and record assignments when your company sells or buys the beneficial (investor) interest and/or servicing rights to/from another Member. The primary value to the seller is eliminating the cost of preparing and recording assignments. The primary value to the buyer of the beneficial interest is eliminating the cost of tracking and storing assignments, and in providing best execution for the seller. The primary value to the buyer of the servicing rights is reducing post closing, foreclosure and lien release costs due to the grounding of title in the name of MERS. If the servicer sells the servicing rights in the future to another MERS Member, it eliminates the cost of preparing and recording assignments. In the case of Ginnie Mae pools, it also eliminates the cost of endorsing the notes to the buyer. So that buyer and seller realize the full value of MERS, the MERS Processing Standards are designed to ensure that: • • • • • A valid MIN is assigned to the loan and affixed in the proper location on the Note, MOM security instrument, or assignment to MERS MERS is rapidly and accurately recorded in the county land records as mortgagee after loan origination or, assignment to MERS, or acquisition of servicing The corresponding loan information is rapidly and accurately registered on the MERS System after origination, assignment to MERS, or acquisition of servicing When beneficial or servicing rights are sold to another Member, the seller and buyer rapidly update the MERS System to reflect the new ownership interests When a loan is foreclosed, paid off, or servicing is sold to a non-MERS Member, MERS is quickly released in the county land records as the mortgagee of record and the MIN assigned to the loan is affixed in the proper location on the lien release document or assignment from MERS to the buyer

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10Draft

MERS Quality Assurance Policy - 1

Strategy
Your company committed to abide by the MERS Processing Standards by signing the Member Agreement. The current servicer of a loan for which MERS has been named mortgagee inherits from the seller the responsibility for meeting the MERS Processing Standards. MERS will provide the knowledge, training, and tools (or assistance in creating tools) that ensure the quality of generating MINs, preparing and recording documents, and the information on the MERS System. MERS expects your company to integrate the MERS Processing Standards into your everyday business practices. We expect you to self-audit your performance against the MERS Processing Standards by developing a quality assurance plan that is designed to meet or exceed the standards (for a sample MERS Quality Assurance Plan you may use the sample MERS Quality Assurance Plan as a model in creating the plan for your organization, click here). We require that you keep your most recent MERS Quality Assurance Plan on file with MERS. We expect your company to regularly conduct monthly internal reviews reconciliations to monitor your performance, against the plan, and to and review theyour plan at least annually for accuracy and effectiveness. We require an annual independent attestation to the control structure of your organization’s monthly system to system reconciliation process, reject/warning report process, and adherence to your organization’s MERS internal Quality Assurance Plan at least annually.

Monitoring
To monitor the effectiveness of our Members’ training, tools, and procedures, we the MERS Product Performance Department periodically select Members for a conducts quality assurance review based on their relative risk to MERS and other MERS Members. bi-annual Member data reviews. Member compliance reviews may be conducted on-site at MERS’ discretion. Please see Appendix A for a sample of the type of information that we typically request during a Quality Assurance Review.

Independent Attestation
The Attestation of MERS Quality Assurance Standards Compliance required annually from each Member attests to your reconciliation of all required and applicable conditional fields to the MERS® System fields at least monthly, that all required and applicable conditional fields entered on the MERS® System match those values in your internal system, and that your reconciliation includes a system-to-system comparison of your portfolio to the MERS® System and the MERS® System to your portfolio. It also attests to your reconciliation at least monthly of the portfolio analysis report against registrations, transfers, paid in full MINs, foreclosures and Transfers to non-MERS Status. And it attests that you have reconciled all mandatory reject warning reports, and that you have monitored your performance against your Quality Assurance Plan and have reviewed the plan at least annually for accuracy and effectiveness.

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10Draft

MERS Quality Assurance Policy - 2

05 – 6/14/10Draft MERS Quality Assurance Policy . MERS Quality Assurance Procedures – Release 19.3 .Your annual attestation must be executed by an independent auditor and delivered to MERS within 90 days of your membership anniversary date.

If the jurisdiction doesn’t require recording.05 – 6/14/10Draft MERS Processing Standards .4 . 3. were improperly recorded. For originations. or were never recorded at all. and to avoid the possibility of MERS and its Members being assessed penalties for not having liens released in a timely manner. Following are the MERS standards established for Member processing of MOM security instruments. The majority of mortgage industry participants that helped MERS define standards for processing recording documents believed the entire industry would benefit. MERS must still be namrecorded in the county land records in accordance with the MERS Rule of Membership. Send the security instrument for recording within seven calendar daysin accordance with state or investor guidelines. Likewise. many assignments and lien releases were not recorded in a timely manner. liens must be released as soon as possible after a loan is paid off. Place the Mortgage Identification Number (MIN) in a visible location on the first page of the security instrument. recording of documentsThe accuracy of the information entered into the MERS® System affects the ability of MERS to immediately and correctly identify the party to whom service of process should be directed. Creating recording and lien release processing standards is important because: 1. but not in any space reserved for the jurisdiction’s recorder per jurisdictional requirements. county recorder requirements take precedence over the MERS requirements. In all cases. To benefit consumers. the security instrument. The ability of MERS Members to sell mortgage loans to each other without recording assignments is contingent on MERS being properly recorded as the mortgagee in the county land records. of the Note Date or Funding Date. assignments for non-MOM security instruments. industry participants agreed there were no industry-wide standards for the processing of assignments and lien releases. 2. MERS as Original Mortgagee (MOM) Security Instrument Processing Standards • You must name MERS as mortgagee in accordance with investor guidelines and include the Servicer Identification System telephone number (888-679-6377) in the MERS as Mortgagee language.MERS Processing Standards Overview As the MERS System was being developed. • • • MERS Quality Assurance Procedures – Release 19. the originator must register the loan with a MOM security instrument on the MERS System within ten seven calendar days of the Note Date or Funding Date. Without standards. Sample MOM language is included in Appendix B. This created a number of problems and costs for buyers and sellers of servicing rights. lien releases and data integrity.

MERS Quality Assurance Procedures – Release 19. Place the MIN and Servicer Identification System telephone number (888-679-6377) in a visible location on the first page of the assignment. send the assignment for recording no later than 14 calendar days after the Registration Date on the MERS Systemensure MERS is named as Assignee in accordance with the MERS document standards in the county land records.5 .of discovering the error. Note: MERS requires the Member and/or assignment provider to have on file the details for any exceptions where the Member or provider was not able to meet the expected timeframes. reverse the registration on the MERS® System the same day the error is discoveredwithin ten calendar days of discovering the error.05 – 6/14/10Draft MERS Processing Standards . In all cases. If a loan is registered but does not close. county recorder requirements take precedence over the MERS requirements. whether due to county recorder requirements or lack of sufficient information to complete the assignment. but not in any space reserved for the jurisdiction’s recorder per jurisdictional requirements. If a loan is registered but does not close. For all loans assigned to MERS.• If a loan with a MOM security instrument is purchased before registration. The effective transfer date is the date defined in the Purchase and Sale Agreement on which the buyer begins servicing the loans on its servicing system or. reverse the registration on the MERS® System within ten calendar days the same day the error is discovered. or is never assigned to MERS. You cannot update assignment recording information on the MERS System until you populate the Assignment Sent Date field on the MERS System. • Register (or convert from iRegistration to Non-MOM) the loan being assigned to MERS on the MERS® System within 14 seven calendar days of the effective transfer date. Update the Assignment Sent Date field on the MERS System within five calendar days of sending the assignments to the county recorder. and the Security Instrument is not recorded in the county land records. • • • iRegistration Processing Standards • • Ensure MERS is not the current mortgagee or assignee. A sample of an assignment is included in Appendix B. for loans assigned into MERS by the originator or Purchaser. ensure an assignment out of MERS has been recorded. and the documents are not recorded in the county land records. • Non-MOM Security Instrument Assignment Processing Standards Prepare the assignment document naming MERS as mortgagee. the assignment date. the buyer must ensure that the loan is registered on the MERS System within ten 14 calendar days of the purchase (funding) date. If MERS is the original mortgagee on the security instrument.

or within seven calendar days of the Registration Date if later. or of the Registration Date if later. county recorder requirements take precedence over the MERS requirements.05 – 6/14/10Draft MERS Processing Standards . In all cases.g. Assumptions. Enter the recording information on the MERS® System within six months of the effective date. etc. unless that placement is not in compliance with county recorder requirements. MERS Quality Assurance Procedures – Release 19. • • Enter the additional loan information (Modification.) on the MERS® System within seven calendar days of its effective date.(e.6 .Additional Recordable Documents Processing Standards Place the MIN and Servicer Identification System telephone number (888-679-6377) in an area that is under or close to your company’s loan number on the document. See Appendix B for sample changes to documents and links to sample documents.

you must receive and enter on the MERS System all modification agreement recording information within six months* of the Modification Date. This includes: • MOM Indicator set to Non-MOM • Originating Organization • Originating Org ID if originated by MERS Member • Original Note Holder if originated by non-MERS Member • Mortgagee/Beneficiary • Security Instrument Type • Trustee (for Deed of Trust) • Recording Date • Instrument or Document Number • Book or Liber • Page or Folio • Recording Type (Recording or Re-Recording) • Assignee and Assignor Names • For all modified MOM and Non-MOM loans. you warrant that you have entered all security instrument. In setting the Quality Review Flag to Y.7 . and recording information within six months* sevensixty calendar days of the Registration Dateeffective transfer date or Security Instrument or Assignment date. However. set the Quality Review Flag to Y on the MERS System within 12 months of the Registration Date. and assignment. you must enter all security instrument and assignment information on the MERS System all security instrument. Date.Security Instrument and Recording Information Processing Standards Note: The current sServicer and Subservicer isare responsible to MERS for ensuring that all security instrument and recording information is entered. you must enter the security instrument information on the MERS System all the security instrument and recording information within thirty (30) calendar days* at the time of the Registration. or within seven calendar days of the Registration Date if later. • For all MOM loans. there is a complete chain of title with MERS MERS Quality Assurance Procedures – Release 19. and modification recording information correctly on the MERS System. • For all MOM and Non-MOM loans. assignment.05 – 6/14/10Draft MERS Processing Standards . your trading partner agreements may require you to update recording information when it is received even if the loan has already been transferred. This includes: • MOM Indicator set to MOM • Originating Org ID • Mortgagee/Beneficiary • Security Instrument Type • Trustee (for Deed of Trust) • Recording Date • Instrument or Document Number • Book or Liber • Page or Folio • Recording Type (Recording or Re-Recording) • For all loans assigned to MERS.

Note: Send lien releases to the county recorder within the state-imposed time frames established for the applicable counties and states. Place the MIN and Servicer Identification System telephone number (888-679-6377) in an area that is under or close to your company’s loan number on the document. Change MIN foreclosure status to “Foreclosure Pending Option 1 (assigned to servicer) for a MOM or Non-MOM loan. In all cases. • • • • Foreclosure Processing Standards • • For MOM and Non-MOM loans. but no later than 45 calendar days after the effective payoff date. than 45 calendar days after the effective payoff date. and you have performed a quality control check to verify the integrity of the data that you entered. unless that placement is not in compliance with county recorder requirements.05 – 6/14/10Draft MERS Processing Standards . You are expected to receive and enter all recording information within 3 months of the average recording time for these counties. This includes: • MOM Indicator set to iRegistration • Originating Organization o Originating Org ID if originated by MERS Member o Original Note Holder if originated by non-MERS Member • Mortgagee/Beneficiary • Security Instrument Type Lien Release Processing Standards • Change the MIN status to “paid in full” and enter the Effective Payoff Date on the MERS System within seven four calendar days of payoff of the loan on your company’s servicing system. • For all MERS® iRegistration loans.recorded as the final mortgagee. For MOM and Non-MOM loans: • Prepare the lien release document with MERS as mortgagee. (See Data Integrity Standards for the items required for certification.) *MERS grants an exception to the recording standards for those counties where recording time frames exceed the established MERS standards. Members must record an instrument of satisfaction releasing MERS from the lien. you must enter all security instrument information on the MERS System within sixty calendar days of the Registration date. An example of a lien release is included in Appendix B. county recorder requirements take precedence over MERS requirements. if more stringent than the MERS requirements.8 . or “Foreclosure Pending Option 3 (iRegistration only)” for an MERS Quality Assurance Procedures – Release 19. Send the lien release document for recording no later within state-imposed time frames and per the MERS rRules of Membership. prepare assignment to Servicer and send it for recording before taking first legal action.

o If the loan reinstates and is assigned back to MERS.keep active as iRegistration” within threefour calendar days of the reinstatement or modificationaction taking place. If the loan reinstates and is assigned back to MERS. • Change MIN foreclosure status to “Foreclosure Reinstated or Modified (option 1). o o Prepare assignment to Servicer and send it for recording within 14 calendar days of the status change on the MERS System. prepare the assignment to MERS and send it for recording within 14 calendar days of the status change on the MERS® System. Members must ensure MERS is no longer named in the County land records • Change MINforeclosure status to “Foreclosure Reinstated or Modified (option 1). •o Upon deactivation. Some examples of First legal action may be defined bywhat might be considered first legal action are: o o o o o o Publication Recording of the notice of default Recording notice of sale Filing of the complaint Filing with public trustee Notice of hearing Petition Prepare assignment to Servicer and send it for recording within four calendar days of the status change on the MERS System. Each Servicer must include in its Quality Assurance Procedures a definition of when it deems a foreclosure complete or reinstated.05 – 6/14/10Draft MERS Processing Standards . reinstatement or modification to deactivate MIN. and hold to it consistently. Assigned to Servicer” on MERS® System within seven calendar days of initiating foreclosure by Servicer. •o • Change Deactivate the MINChange foreclosure status to status towith “Foreclosure Complete” or “Foreclosure Reinstated or Modified (option 1).iRegistration. assigned back to MERS” within threefour calendar days of the reinstatement or modificationaction taking place. not assigned back to MERS . not assigned back to MERS – Deactivate” or Foreclosure Reinstated” within four seven calendar days of this action taking placeforeclosure completion. If loan assigned to Servicer for foreclosure: o Change MIN status to “Foreclosure Pending. • MERS Quality Assurance Procedures – Release 19. within seven four calendar days of when the first legal action is taken. pPrepare the assignment to MERS and send it for recording within four calendar days of the status change on the MERS® System.9 .

For all MOM and Non-MOM loans deactivated for reason of “Transfer to non-MERS ServicerStatus. ensure a three-way validation occurs and the information on the recorded security instrument matches the MERS® System and your LOS or Servicing system.” “Default by Servicer. • Member Information Update Standards • Ensure that all Member Information on MERS® System is kept current and accurate. This includes: • • • • • Member name (contact MERS to change) Member address(es) Member phone and fax numbers Member URL Member contact information (names. and update Deactivation Assignment Sent Date on the MERS System.10 .05 – 6/14/10Draft MERS Processing Standards . reverse it on the MERS® System the same day the error is discoveredwithin seven calendar days of discovering the error. otherwise to the data on the internal system of the Servicer.Deactivation Processing Standards • • Change MIN status to deactivation reason on MERS® System within seven four calendar days of the event that caused the deactivation. o Loan status on the Member’s system must match the MERS® System.” prepare assignments and send them for recording. MERS Quality Assurance Procedures – Release 19. and email addresses). phone and fax numbers. If a deactivation was performed in error.” or “Default by Subservicer. including at a minimum: • Primary Customer Service contact • Primary System Administrator contact • Operational contact • Accounts Billing contact • Executive Sponsor • Lawegal • Technical (required if using system-to-system interface to MERS® System) Data Integrity Standards These Standards apply to the data on the internal system of the Subservicer if one is named on the MERS® System. Upon registering a loan on the MERS® System. within 14 seven calendar days of the Deactivation Date.

and the original borrower name(s) on the MERS System must match exactly the borrower name(s) on the original security instrument. selected for a Document MERS Quality Assurance Review. •o Subject property address must match exactly the property address on the security instrumentin the Member’s system unless the subject address has been changed by governmental decree. •o Mortgagee/Beneficiary. the current borrower name(s) on the MERS System must match the borrower name(s) on your company’s servicing system.05 – 6/14/10Draft MERS Processing Standards . Trustee on MERS® System matches original Deed of Trust. Funding Date must match the date specified on the Member’s Servicing system. Note: You must correct all “County Unknown” warnings before you set the Quality Review Flag equal to Y on the MERS® System •o Note Date and Note Amount must match the date and amount specified in the original Note or eNote. Non-MOM for loans assigned into MERS. may require the Member to enter the Substituted Trustee in the Trustee field. You may identify a non-Member investor with an alias or by MERS Quality Assurance Procedures – Release 19.) •o Primary Current BorrowersThe social security number or tax identification number for all current borrowers must match the numbers used for IRS 1098 reporting on your company’s servicing system. Assignment Recording Information on MERS® System matches recording information on Assignment. o For assumed loans. • • • • Specified MINs. title.on the Member’s system. (Exception may be made if the loan was assumed before being registered on the MERS® System. If applicable. Modification Agreement Recording Information on MERS® System matches recording information on Modification Agreement. if the investor is either an Option 1 or an Option 2 Member Investor.11 . • .•o The current borrower name(s) or Corporate name(s) on the MERS System must match exactly the borrower name(s) or Corporate name(s) on the original security instrumentMember’s system (including middle name or initial). •o Investor identified as the current Investor on the MERS System must be the investor designated on your company’s servicing system. and honorific. and iRegistration for loans on which MERS is not the mortgagee. and Owner Occupied flag on MERS® System must match the original Security InstrumentMember’s system If Deed of Trust. and Security Instrument Type. If applicable. •o Property County must match the county listed in the legal description made part of the security instrument.on the Member’s system. •o If applicable. Lien Type. •o MOM Indicator is MOM for loans with MERS as Original Mortgagee (MOM) which have never been assigned out of MERS. if present on the security instrument) unless the loan has been assumed. Security Instrument Recording Information on MERS® System matches recording information on original Security Instrument.

12 . you must disclose the actual investor’s name to MERSCorp.using Org ID 1000002 (Undisclosed Investor). the investor’s requirements supersede MERS policy. must match those on your company’s servicing system. •o Investor Loan Number.05 – 6/14/10Draft MERS Processing Standards . must match those numbers values on your company’s servicing system. o Subservicer identified as current Subservicer on the MERS System must be the subservicer designated on your company’s servicing system. o Example: ABC Trustee 2010-10 or ABC as Indenture Trustee of the 2008HE325trust • For MINs in rated securities. MERS Quality Assurance Procedures – Release 19. FHA/VA Case numbers. or Original Note Holder for Non-MERS Member. Enter the pool number for an Agency and the name of the trust otherwise. and Agency ID if required by the investor. •o Originating Org ID for MERS Member. Note: If a specific investor’s requirements are more stringent than the MERS requirements. Note: Both buyer and seller are responsible to MERS for ensuring that transfers are completed in a timely manner. o When the Investor field contains a securitization trustee. Investor Pool Number (or Trust Name). Members are required to enterpopulate the “Pool” field to better define the Investor legal entities holding the note. •o The seller must initiate all Transfer of Beneficial Rights transactions within 14 five calendar days of the effective transfer date. •o The seller must initiate all Transfer of Servicing Rights transactions within 14 five calendar days of the effective transfer date. however. Inc. you must enter the securitization serial number either in the Pool Number field or in the Investor Loan Number field. •o Servicer and Subservicer (if applicable) identified as current Servicer or Subservicer on the MERS System must be the servicer and subservicer designated on your company’s servicing system. if required by the Investor. correctly reflects loan originator. •o If applicable. The effective transfer date is the date defined in the Purchase and Sale Agreement on which the buyer begins servicing the loans on its servicing system.

05 – 6/14/10Draft MERS Processing Standards . the following fields must be reconciled monthly between your internal system and the MERS® System. If you update additional fields on the MERS® System.13 . Field name MOM & Non-MOM Registration Data MIN Mortgagee/Beneficiary Lien Type Note Date Note Amount Servicer Subservicer Investor Originating Org ID Original Note Holder Property Street name Property Street number Property City Property State Property Zip County MOM Indicator Security Type Property Unit type Assignee Name Assignee Address Assignee City Assignee State Assignee Zip Funding Date Corporate name Borrower First name Borrower Middle name R R R R R R C R C C R R R R R R R R C C C C C C C C C C Required if Assigned out of MERS Required if Assigned out of MERS Required if Assigned out of MERS Required if Assigned out of MERS Required if Assigned out of MERS Required if different from Note Date Required if Subservicer is a MERS Member Required for MOM Loan or if Originated by MERS Member Required within 60 days of Registration if Originated by Non-MERS Member Required or Conditional Additional Condition MERS Quality Assurance Procedures – Release 19. you must reconcile them with your internal system as well.Monthly Reconciliation Standards At a minimum.

05 – 6/14/10Draft MERS Processing Standards .Field name Borrower Last name Primary Borrower Social Security number Co-borrower Corporate Name Co-borrower First name Co-borrower Middle name Co-borrower Last name Co-borrower Social Security number Property Unit number Investor Loan number FHA/VA/Mi loan number Pool Number Agency ID Assignment Sent Date Assignor Name Property Preservation Org ID Owner Occupied Indicator Required or Conditional C R C C C C C C C C C C C C C R Additional Condition Required if Investor field contains securitization trustee Enter pool number for Agency Trustee Otherwise enter name of trust Required if Assigned into MERS Required if Assigned into MERS Required if Member Property Preservation Company Assigned to Property MERS® iRegistration Data MIN Mortgagee/Beneficiary Lien Type Note Date Note Amount Servicer Subservicer Investor Originating Org ID Original Note Holder Property Street name Property Street number Property City Property State Property Zip County R R R R R R C R C C R R R R R R Required if Subservicer is a MERS Member Required if originated by MERS Member Required if not originated by MERS Member MERS Quality Assurance Procedures – Release 19.14 .

MIN Status: Active Paid In Full Foreclosure Complete Foreclosure Status: Pending Foreclosure Foreclosed in MERS’ Name (Y/N) Contacts Accounts Billing Primary System Administrator Primary Customer Service Operational Technical Executive Sponsor Legal R R R R C R R Required if using System-to-System Interface R R R R R MERS Quality Assurance Procedures – Release 19.Field name MOM Indicator (must = iRegistration) Property Unit Type Corporate name Borrower First name Borrower Middle name Borrower Last name Primary Borrower Social Security number Co-borrower Corporate Name Co-borrower First name Co-borrower Middle name Co-borrower Last name Co-borrower Social Security number Property Unit number Property Preservation Org ID Owner Occupied Indicator Required or Conditional R R C C C C R C C C C C C C R Additional Condition Required if Member Property Preservation Company Assigned to Property NOTE: REO MERS® iRegistrations must be registered in accordance with Announcement 2010-05.05 – 6/14/10Draft MERS Processing Standards .15 .

reviewing mortgage documents for MERS loans serviced/originated by the Member and/or data from the Member’s servicing or loan origination system. The following list identifies the types of documents the Quality Assurance Team reviews and the key data elements that are compared to the MERS® System. and procedures.16 . but are not limited to. This helps ensure that the data on the MERS® System is correct. however . and speak with the staff performing your MERS functions. non-MOMs and iRegistrations). to help us understand and improve your MERS processing. should the jurisdiction not require recordation. and/or servicing or loan origination system data to compare the information to the MERS® System. workflow. MERS may request a random sampling of documents (for MOMs. departments. and that the Member is following the MERS documentation and quality assurance standards. MERS completes performs biannual a variety ofMember Data Reconciliation quality assurance reviews which may include. Checklist Items MOM Security Instrument Document Review       Approved MOM Language Used Correct MIN and SIS Number placed on documents MIN positioned in correct location on required documentation Security Instrument sent for recording within 7 calendar days of Note Date (or Funding Date in escrow states) in accordance with state and investor guidelines.Appendix A MERS Quality Assurance Review To ensure compliance with MERS Quality Assurance standards.05 – 6/14/10Draft Appendix A . MERS may also conduct an on-site review of your MERS processes. MERS will also request a copy of your most recent MERS Quality Assurance Plan. MERS rules state MERS must be named in the county land records Security Instrument registered on MERS within 10 seven calendar days of Note Date (or Funding Date in escrow states) MOM indicator is set to “MOM” in MERS® OnLine Approved MERS as Mortgagee Language used Correct MIN placed on Assignment MIN positioned in correct location on Assignment Correct SIS Number placed on Assignment SIS Number positioned in correct location on Assignment Assignee (when assigning to MERS) or Assignor (when assigning from MERS) name and address indicated on the MERS® System match the executed assignment Loan registered or converted from iRegistration to Non-MOM within 14 seven calendar days of Transfer Date or Assignment Date Assignment Sent for Recording within 14 seven calendar days of Registration Date MERS Assignments Document Review         MERS Quality Assurance Procedures – Release 19.

or assignment out of MERS recorded before registration as iRegistration loan MOM indicator is set to “iRegistration” in MERS® OnLine Lien Release Document Review o Approved MERS as Mortgagee Llanguage used o Correct MIN and SIS number placed on documents o MIN positioned in correct location on required documentation o Lien Release sent for recording o MIN status on MERS®(R) System is updated to reflect Paid in Full within four calendar days MERS Signing Officer signature is valid: o Present on approved Signing Officer list for that Org ID and date o Proven to be an officer of the company with that Org ID on that date Foreclosure Document Review o Foreclosure documentation matches foreclosure status transacted on MERS® System o Member will supply proof of assignment if applicable o Member will supply proof of first legal action o Pending Option in MERS® System matches documentation o Assignments out of MERS contain: o Correct MIN placed on Assignment o MIN positioned in correct location on Assignment o Correct SIS Number placed on Assignment o SIS Number positioned in correct location on Assignment o MERS Signing Officer signature is valid:  Present on approved Signing Officer list for that Org ID and date  Proven to be an officer of the company with that Org ID on that date Ensure Substitution of Trustee field data matches document(s) provided If property went to sale.17 . provide subsequent deed removing MERS from title MERS® iRegistrations Document Review      MERS Quality Assurance Procedures – Release 19.05 – 6/14/10Draft Appendix A . ensure MERS was not left in title on sale documentation (unless in a state where this is temporarily allowed) If title was deeded to MERS temporarily.   Assignment Sent Date entered on MERS® System within 5 calendar days of sending assignment for recording execution MOM indicator is set to “Non-MOM” in MERS® OnLine MERS Signing Officer signature is valid: o Present on approved Signing Officer list for that Org ID and date o Proven to be an officer of the company with that Org ID on that date No MERS language used.

Security Instrument and Assignment recording information entered on MERS® System within 6 months of Registration Date MOM and Non-MOM loans – o Recording information for modification agreements entered on MERS® System within six months of modification date o Assignee and Assignor Names entered for all assignments within six months of modification date o Quality Review Flag set to “Y” within 12 months of Registration Date All loans . For MOM and Non-MOM: o Correct SIS Number placed on document o SIS Number positioned in correct location on document o Recording information entered on MERS® System within six months of effective date or seven calendar days of Registration Date. whichever is later.Security Instrument recording information entered on MERS® System within 30 calendar days of Registration Date Non-MOM loans .18 .  If loan reinstates and is assigned back to MERS. MERS Quality Assurance Procedures – Release 19. prepare assignment to MERS and send it for recording within 14 calendar days of status change on MERS® System.05 – 6/14/10Draft Appendix A .  MIN status changed to “Foreclosure Complete” or “Foreclosure Reinstated” within seven calendar days of when foreclosure is deemed complete or reinstated. Assigned to Servicer” within seven calendar days of initiating foreclosure by servicer.  If MOM or Non-MOM loan assigned to Servicer for foreclosure:  Change MIN’s foreclosure status to “Foreclosure Pending.  Prepare assignment to Servicer and send it for recording within 14 calendar days of status change on MERS® System.Additional Recordable Documents     Correct MIN placed on document MIN positioned in correct location on document Transaction entered on MERS® System within seven calendar days of effective date or Registration Date. whichever is later. as defined in Member’s Quality Assurance Procedures. MOM loans .within six months of Registration Date: o Mortgagee/Beneficiary entered o Security Instrument Type entered o Trustee entered Security Instrument/Recording Information Processing Standards (MOM & Non-MOM)     Foreclosure Processing Standards  MIN status changed to “Foreclosure Pending” within seven calendar days of when the first legal action is taken.

Default by Subservicer MIN status changed to “Transfer to Non-MERS Member.19 .  Deactivation Standards – All Others  MIN status changed to reflect deactivation and Effective Date entered on MERS® System within seven calendar days of event that caused the deactivation.05 – 6/14/10Draft Appendix A .   Lien Release document for MOM or Non-MOM loan has: Approved MERS as Mortgagee language Correct MIN placed on Lien Release MIN positioned in correct location on Lien Release Correct SIS Number placed on Lien Release SIS Number positioned in correct location o o o o o Deactivation Standards – Transfer to Non-MERS Member. and Assignment Sent Date reflected on MERS® System. For MOM and Non-MOM loans. assignment sent for recording within 14 calendar days of Deactivation Date on MERS® System  MERS Quality Assurance Procedures – Release 19.” or “Default by Subservicer” and Transfer Effective Date entered on MERS® System within seven calendar days of effective transfer date.” “Default by Servicer. Default by Servicer. within 14 calendar days of Deactivation Date.Deactivation Standards – Payoff MIN status changed to “Paid in Full” and Effective Payoff Date entered on MERS® System within seven calendar days of Payoff date on the Member’s servicing system  Lien Release document sent for recording no later than 45 calendar days after the effective payoff date.  For MOM and Non-MOM loans. assignment sent for recording.

05 – 6/14/10Draft Appendix A .Data Integrity Standards                    MOM Indicator correctly reflects MERS as Mortgagee status Original Borrower Name(s) on MERS® System match Security InstrumentMember’s system. Investor Pool # and Agency ID (if required) match Member’s servicing system If applicable. Assignment. Current Borrower Name(s) on MERS® System match Security Instrument or current borrower(s) on Member’s servicing system All Borrower Social Security or Tax ID numbers matches Member’s servicing system Property address matches the address on the Security InstrumentMember’s system Property County matches the legal description made part ofon the Security InstrumentMember’s system Note Date matches the original Note or eNote If applicable.20 .) Investor on MERS® System matches Member’s servicing system Servicer/Subservicer on MERS® System matches Member’s servicing system Subservicer on MERS® System matches Member’s servicing system Originating Org ID for MERS Member. FHA/VA case numbers match Member’s servicing system    Member Information Standards  All Member Information (including Contact Information) on MERS® System is current and accurate. Funding Date matches funding date on Member’s servicing system Note Amount on MERS® System matches original Note or eNote Lien Type on MERS® System matches Security InstrumentMember’s system Security Instrument Type on MERS® System matches Security InstrumentMember’s system Mortgagee/Beneficiary on MERS® System matches Security InstrumentMember’s system Owner Occupied flag on MERS® System matches Member’s system Trustee on MERS® System matches Deed of Trust Recording Information on MERS® System matches recording information on original document (Security Instrument. etc. MERS Quality Assurance Procedures – Release 19. or Original Note Holder for Non-MERS Member. Securitization Serial Number entered into Pool #Number or Investor Loan # field for MINs in rated securities: o Contains pool number if securitization trustee is an Agency o Contains trust name otherwise Investor Loan #. correctly reflects loan originator.

deed of trust and other security instruments should be modified to add Mortgage Electronic Registration Systems. MERS is not rendering legal advice to Lenders. and agency or investor requirements. (d) lien releases or reconveyances and (e) any other instruments recorded in the public land records in which MERS has a legal interest. as well as the SIS telephone number. Placement of the MIN on other loan documentation is optional for the Lender. (c) assignment of security instruments to or from MERS.21 . may require other changes to the documents.. Flint. (888) 679MERS. a Delaware stock corporation with an address and telephone number of P. 2) The 18-digit mortgage identification number (“MIN”) required for each loan registered on the MERS® System. MERS Quality Assurance Procedures – Release 19. Inc.Appendix B Sample Documents for MOM Loans and Loans Assigned to MERS MERS does not mandate specific language changes to mortgage loan documents. Box 2026.O. (b) other security instruments. The following materials are provided to give Lenders guidance on the changes that may be appropriate to achieve our requirements. Lenders and their counsel are free to make other changes that they believe are necessary or appropriate to conform their documents to the requirements of the MERS® System. tel.05 – 6/14/10Draft Appendix B . Inc. must be placed on the cover page (or first page if there is no cover page) of each of the following documents: (a) mortgage or deed of trust. MI 48501-2026. Specific state or local recording laws. the following three requirements must be satisfied for MOM loans and loans assigned to MERS: 1) Legal title to the mortgage lien or the lien of other security agreements must be vested in Mortgage Electronic Registration Systems. However. 3) Notices provisions in the mortgage.

Extension and Modification Agreement Sample California Assignment MERS to MERS Sample Subordination Agreement Sample Subordination of Lien Sample Security Deed MERS Quality Assurance Procedures – Release 19.org:            Sample MOM Deed of Trust Sample MOM Mortgage Sample Assignment of Mortgage to MERS Sample Assignment of Mortgage from MERS Sample Lien Release Sample Loan Modification Agreement Sample Consolidation.Following are sample changes to these documents:      MOM Deed of Trust or Mortgage Corrective Affidavit for Assignment Corrective Affidavit for Security Instrument Loan Security Agreement For Co-ops: o UCC-1 Naming MERS as the Original Secured Party o UCC-3 Assigning Security Interests to MERS o UCC-3 Assigning Security Interests from MERS o UCC-3 Termination Agreement Sample documents are available on the MERS website at www.mersinc.22 .05 – 6/14/10Draft Appendix B .

Inc.O. MI 48501-2026. and has an address and telephone number of P. extensions and modifications of the Note. the following described property located in Add Borrower consent sentence. This Security Instrument secures to Lender: (i) the repayment of the Loan. in trust. Borrower does hereby [mortgage. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender’s successors and assigns. and to take any action required of Lender including.Sample Changes to Deed of Trust or Mortgage naming MERS as the Original Mortgagee (MOM Document) The MERS 18-digit MIN must be visible on the Security Instrument. This Security Instrument secures to Lender: (i) the repayment of the Loan. but not within the top recording margin or on the right margin.23 . Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument.] grant and convey to MERS (solely as nominee for Lender and Lender’s successors and assigns) and the successors and assigns of MERS. with power of sale. For this purpose. MERS is the [grantee/beneficiary/mortgagee] under this Security Instrument.g. MERS is organized and existing under the laws of Delaware. if necessary to comply with law or custom. and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. e.g. e. Place the MIN to the right of the form title. The specific language and placement may vary from state to state. Borrower irrevocably grants and conveys to Trustee. but not limited to. Below is just a generic sample of what changes may need to be made. but. For this purpose. (888) 679-MERS. with power of sale. the following described property located in or The beneficiary of this Security Instrument is MERS (solely as nominee for Lender and Lender's successors and assigns) and the successors and assigns of MERS.g. Flint. tel. the right to foreclose and sell the Property. and all renewals. releasing and canceling this Security Instrument. extensions and modifications of the Note.05 – 6/14/10Draft Appendix B . Please check with your documentation preparation vendor for state specific forms. MERS Quality Assurance Procedures – Release 19. including. In the Definitions section: MERS as Grantee/Mortgagee language. MERS (as nominee for Lender and Lender’s successors and assigns) has the right: to exercise any or all of those interests. Box 2026. and (ii) the performance of Borrower’s covenants and agreements under this Security Instrument and the Note. and all renewals. e. “MERS” is Mortgage Electronic Registration Systems. but not limited to. In the granting clause: MERS noted as grantee solely as nominee for lender.

city and state). dated _________________ and recorded at the (insert name of recording office) at Book ________.24 . 2. 4. Page __________. That the correct MIN for the mortgage (or assignment) is MIN _______________________. 200_ (signature line_______________) APPLICABLE STATE NOTARY CLAUSE MERS Quality Assurance Procedures – Release 19. That the Mortgage Identification Number (MIN) was either omitted or incorrect on said Mortgage (or assignment). Mortgage Electronic Registration Systems.. Inc. 3. does hereby depose and say as follows: 1.05 – 6/14/10 Draft Appendix B . That I am an authorized officer of the mortgagee (or assignee). Inc.Sample Corrective Affidavit for Assignment Beneficiary if using a Deed of Trust MORTGAGEE’S AFFIDAVIT The undersigned. That this Affidavit refers to the Assignment from (insert name of Assignor) to Mortgage Electronic Registration Systems. Signed this _______ day of ___________. _______________________. in relation to property located at (insert property address. and that the MERS telephone number to call for information when using this MIN is (888) 679-6377.

_______________________. Inc. 7.Sample Corrective Affidavit for Security Instrument Beneficiary if using a Deed of Trust MORTGAGEE’S AFFIDAVIT The undersigned. as nominee for (insert name of lender.05 – 6/14/10 Draft Appendix B . does hereby depose and say as follows: 5. and that the MERS telephone number to call for information when using this MIN is (888) 679-6377. dated _________________ and recorded at the (insert name of recording office) at Book ________. Mortgage Electronic Registration Systems. That the Mortgage Identification Number (MIN) was either omitted or incorrect on said Mortgage (or assignment). Inc.25 . That this Affidavit refers to the Mortgage from (insert name of borrower) to Mortgage Electronic Registration Systems. That I am an authorized officer of the mortgagee (or assignee). city and state). in relation to property located at (insert property address. it successors and assigns). Signed this _______ day of ___________. 8. 6. 200_ (signature line_______________) APPLICABLE STATE NOTARY CLAUS MERS Quality Assurance Procedures – Release 19. Page __________. That the correct MIN for the mortgage (or assignment) is MIN _______________________.

Debtor fails to make any payment required under the Note within thirty (30) days after the date the payment become due. and having any office at LENDERS ADDRESS. between ABC LENDER CORPORATION.05 – 6/14/10 Draft Appendix B . the apartment (collectively called the “Security”).Sample Loan Security Agreement MIN: 1000XXX-XXXXXXXXXX-X MERS Phone: 1-888-679-6377 Lender’s Loan Number: XXXXXXXX Loan Security Agreement THIS AGREEMENT. (the BANK) and BORROWER AND CO-BORROWER. Debtor fails to execute and deliver any instrument required by the Bank to perfect or protect its security interest in the Security or to pay any filing or recording fees owing in connection with the perfection of the security interest. ST. Debtor is obligated to pay to the Bank the principal amount with interest as provided in the Note (which Principal amount and interest and any sums advanced the Bank pursuant to the terms of this Agreement are called the “debt”). solely as nominee For the Bank. and the Lease and as security for the payment of the debt. III. Security: Debtor has simultaneously with this Agreement deposited with the Bank. said Stock and Lease and all personal property and fixtures (other than household. incorporated under the laws of the State of __________.26 . now or hereinafter attached to. Failure to Pay. as indicated on the UCC-I or UCC-3 2. and a general lien upon. or Failure to Deliver Security Instruments. Debtor hereby grants to Mortgage Electronic Registration Systems. (Debtor) residing at: BORROWER’S ADDRESS I. Debtor does not cure any default under the Lease within the time periods. surrender or assign the Lease prior to maturity of the Note. or used in connection with. furniture and furnishings) of debtor. Language. 4. ZIP. Debtor hereby covenants and agrees as follows: II. if any specified within a reasonable time. made DATE XXXXX. Defaults: The whole of the principal sum and interest shall become due at the option of the Bank upon the occurrence of any of the following events of default: 1. or Cancellation. 2. Surrender or Assignment of Lease. (the Corporation) as evidenced by Certificate Number XXXXXX of the Corporation (the “Stock”) allocated to Apartment (the “Apartment”) XXXXXXX in the building known as XXXXXXX. a security interest in. Inc. And is the tenant under the occupying proprietary lease (the “Lease”) of the Apartment. MERS Quality Assurance Procedures – Release 19. . Representations of Debtor: Debtor owns XXX shares of capital stock of XYZ VILLAGE OWNERS.. 1. 3. the Stock. or Default Under Lease. or . Debtor attempts to cancel. or notice is given by the Corporation that the Lease is to be cancelled or terminated. CityXXXX. its successors and assigns. As evidenced by a note (the “Note”) dated simultaneously with this Agreement. INC.

27 .05 – Draft6/14/10 Appendix B .Sample UCC-1 Naming MERS as the Original Secured Party MERS Quality Assurance Procedures – Release 19.

28 .Sample UCC-3 Assigning Security Interests to MERS when MERS is Not Named as the Original Secured Party Current Secured Party of Record MERS Quality Assurance Procedures – Release 19.05 – Draft6/14/10 Appendix B .

05 – Draft6/14/10 Appendix B .29 .Sample UCC-3 Assigning Security Interests from MERS when transferred to a non-MERS entity MERS Quality Assurance Procedures – Release 19.

05 – Draft6/14/10 Appendix B . When Debt is Paid in Full 18-digit MIN and Servicer Identification System Phone Number MERS Quality Assurance Procedures – Release 19.30 .Sample of UCC-3 Termination.

Glossary Acquisition Date Agency ID Assignment Associated Member Assumption Batch Batch File Batch Inquiry Beneficial Rights Transfer BIR Bulk Transfer CEMA Check digit Co-Borrower The date of acquisition recognized in the books and records of the Purchaser. The MERS employee who assists you in incorporating the MERS® System into your business processes.05 – 6/14/10 Draft Glossary . Each additional borrower listed on the Security Instrument is a Co-Borrower for that loan on the MERS® System. The process of transferring the servicing rights of multiple loans on the MERS System in a one-time transaction. A transfer of the security interest under the mortgage or deed of trust. deed in lieu. A number assigned by a government agency to uniquely identify a mortgage company. When a loan becomes inactive on the MERS System for one of the following reasons: • Paid in Full (includes payoff. A group of one of more MINs identified to be included in a Transfer of Beneficial or Servicing Rights transaction. Uses the Registration transaction. These transfers are tracked for MERS Members on the MERS® System.31 . short sale.) • Transfer to non-MERS Servicer • Involuntary transfer/default by Servicer • Involuntary transfer/default by Subservicer • Foreclosure Complete • Reinstated or modified (option 1). real or personal. The process by which an iRegistration loan is converted to a Non-MOM loan if it is assigned to MERS. A MERS Member that has been granted inquiry only access to loan information by the Servicer/Subservicer of a mortgage registered on MERS. Transaction used to look up information on loans matching search criteria entered using a flat file format. Servicer. A transfer to another of any property. not assigned back to MERS Confirmation Conversion Deactivation MERS Quality Assurance Procedures – Release 19. Business Integration Resource. The first borrower listed on the Security Instrument is the Primary Borrower for that loan on the MERS® System. A system-to system transaction used to update the MERS® System. or of any rights or estates in said property. In MERS® System. Names listed on the Note but not the Security Instrument should not be entered on the MERS® System. etc. or Subservicer to indicate if a pending transfer transaction should be accepted or rejected. which is calculated using the MOD 10 Weight 2 algorithm. Names listed on the Security Instrument but not the Note should be entered as Co-Borrowers on the MERS® System. The transaction used by an Investor. Consolidation. Also known as MECA The final digit of the 18-digit Mortgage Identification Number (MIN). Taking over by one party of an obligation that was originally incurred by another. and Modification Agreement. this results in replacement of the Primary Borrower and all Co-Borrowers. Extension.

not assigned back to MERS-deactivation • Reinstated or modified (option 1). Electronic Tracking Agreement. this may be different from the date the borrower signs the note. A federal statute that establishes the legal validity and enforceability of electronic signatures. and the possessions and freely associated areas of the United States. assigned to Servicer  • Foreclosure pending (option 2). Document Type Definition. Members that are not X12 capable can use this format. Electronic Signatures in Global and National Commerce Act. The code assigned by the Federal Information Processing Standards (FIPS) Publications issued by the National Institute of Standards and Technology (NIST) to represent a county or other entity treated as an equivalent legal and/or statistical subdivision of the 50 states. iRegistration • Reinstated or modified (option 1). A file that defines the “markup language” that will be used to describe the data. assigned back to MERS • Reinstated or modified (option 1). It defines and names the elements that can be used in the document. MERS defines flow as a Transfer Date 270 days or less after the Note Date. The process by which a Member completes procedural changes. The system-to-system exchange of business transactions between one or more business partners in a standard format. Only selected information will be accessible through an automated servicer identification system and the customer must provide required information to activate and release requested information. Electronic Data Interchange. not assigned back to MERS” statuses deactivate the MIN. “Foreclosure Complete” and “Reinstated or modified (option 1). Refers to any non-MERS Member who requests information.Deactivation Reversal DTD The process for reactivating a MIN that was deactivated in error. if not superseded by certain state laws otherwise authorizing such activities.32 . the order in which the elements can appear. District of Columbia. A loan registered on the MERS System 270 days or less after the note date. or the date the note is drawn. training. not assigned back to MERS. and other document features. In some states. EDI eNote ESIGN ETA FIPS Code Flat File Format Flow Loan Registration Flow Transfer Foreclosure Status FTP Funding Date General Public Integration MERS Quality Assurance Procedures – Release 19. the element attributes that can be used. There is no fee for this transaction nor limitations to the number of times a MIN can be included in Flow Transactions. An agreement that is used when a mortgage originator pledges mortgages to a warehouse lender as collateral through a line of credit or other financing arrangement. This is the optional proprietary format for system-to-system input to the MERS® System. contracts. and other records in interstate and foreign commerce transactions. retained on the MERS System • Foreclosure pending (option 3). whichever is applicable.iRegistration • Reinstated or modified (option 2) • Reinstated or modified (option 3) • Foreclosure complete • Foreclosure status reset File Transfer Protocol Funding Date is defined as the date the borrower becomes obligated for the debt and interest starts to accrue. A Transferable Record as defined by E-SIGN or UETA. The field reflecting the current status of a MIN in foreclosure on the MERS® System. and system testing of transactions prior to being live in the MERS® System. The following is a list of MERS foreclosure statuses: • Foreclosure pending (option 1).05 – 6/14/10 Draft Glossary .

TOS. satisfaction. iRegistration loans may be included in transactions (e. thereby eliminating approximately 80% of the required data entry. and MERS® eDelivery. via telephone and email. The member profile indicates the Member’s MERS business process preferences. Uses information entered on the MERS® System to generate a Notice of New Creditor required by the Helping Families Save Their Homes Act of 2009 when a TOB is completed for a MOM or Non-MOM loan. billing. it may have a “hot link” to the Servicer’s website for Customer Service information. and other information. foreclosure). to MERS Members. the MERS® eRegistry. This date will be the same as the servicing Transfer Date unless the buyer does not confirm the transfer on time. but assignment and recording information is optional. Browser-based access to the MERS® System to retrieve information about the current Servicer of a mortgage registered on the MERS® System. The financial interest on a loan that an organization has prior to the sale of the loan to the permanent Investor. which acts as the mortgagee of record in the public land records and as nominee for the lender and its successors and assigns. and other parties that extend interim funding to originators. TOB. If supported by the Servicer. It also warehouses data to pre-populate the fields on the MERS Registration page. and Mortgage Electronic Registration Systems. Wall Street firms. and the Quality Review flag cannot be set to “Y. An electronic note registry that serves as the system of record to identify the current controller and location of the authoritative copy of an electronic note. A complete online solution to achieve MERS® Ready status for Lenders that sell loans servicing-released. Examples of organizations are warehouse lenders. using the existing MERS® eRegistry infrastructure and transaction security requirements. An initiative to provide more transparency regarding residential mortgage loans. and whose fees are current. Loan registered on the MERS® System for information only.. deactivation.05 – 6/14/10 Draft Glossary . Inc. MERS-specific information about a MERS Member that is required at the time of initial setup. An instrument releasing the security interest recorded in the county land records (also discharge. A secure method for distributing eMortgage packages from one MERS® eRegistry Member to another. who has chosen to have their secured interest in each loan represented in a way that only they can release on the MERS® System . MERS® Link also can be accessed via the American Land Title Association web site or through a subscription to the service Lender Lien Release Line of Business (LOB) Member Member Profile MERS MERS® 1-2-3 MERS actual Transfer Date MERS® eDelivery MERS® eRegistry MERS Help Desk MERS® InvestorID MERS® Link MERS Quality Assurance Procedures – Release 19. The owner of the beneficial interest in a loan. Investors who have developed their own notification process can opt out of MERS® InvestorID. These are listed in the Member’s Member Profile. it generates a MIN to be presented on a MOM security instrument or assignment. where MERS is not the mortgagee.. Refers to all organizations whose signed MERS Membership Application has been submitted and approved. MERSCORP.” The payee on the note.g. Inc. Provides support of MERS systems and procedures.33 . Through interfaces with approved document preparation companies. The date servicing of the loans is transferred in the MERS database. reconveyance).Interim Funder Interim Funder Interest Investor iRegistration Organization with an interim financial interest on a loan prior to the sale of the loan to the permanent Investor. its wholly owned and bankruptcy remote subsidiary. which owns and operates the MERS® System. The types of business in which a Member is active on the MERS® System.

The MERS® OnLine functionality that allows Members to create a list of frequently used Org IDs. the 10-digit sequence number. Note Date is the date on the Note. In the Option 2 process. Browser-based access to the MERS System. This type of Member sells servicing-released within 30 days of loan closing. The process that removes MINs that have been deactivated on the MERS System. Browser-based access to servicer contact information for loans registered on the MERS® System. its successors and assigns. Limited information is still available on the MIN. Generated automatically when a TOB is completed for a MOM or NonMOM loan. See Flat File format.mers-servicerid. An Investor that is not a Member of MERS and performs no active functions on the MERS® System.05 – 6/14/10 Draft Glossary . A Notice of New Creditor required by the Helping Families Save Their Homes Act of 2009. unless the New Investor has opted out of MERS® InvestorID. This transaction is billed to the Investor. The field reflecting the reason for current status of a loan on the MERS® System. found at www. the date the borrower signs the note.34 . MERS® OnLine MERS® Servicer ID MERS® System MIN MIN Archival MIN Status MOM Mortgage Loan Transfer Notice My MERS Non-Member Passive Investor Non-MOM Note Date Option 1 (beneficial rights) Option 1 MIN Cycling Option 1TOS (Default by Servicer) Option 2 (beneficial rights) Optional EDI Format MERS Quality Assurance Procedures – Release 19. using MIDANET or MORNET). Available to the public at www. Servicer. Language written into security instruments that establishes MERS as the Original Mortgagee and nominee for the Lender.org. and leaves the loan active on the MERS® System.org. or the date the note is drawn. The MIN is an 18-digit number composed of the 7-digit Organization ID. Member companies update the registry via MERS® OnLine (the browser-based interface) or through batch file or XML interfaces. Mortgage Identification Number. when delivery has been attempted to an Option 1 Investor.. A loan for which MERS is the mortgagee through an assignment. Interim funding interests are released automatically when the X12 transaction is processed by the MERS® System. An Option 1 Investor may use this transaction to reflect a transfer of servicing on that Investor’s loans to another MERS Member Servicer due to default by the previous MERS Servicer. and the check digit. using the information entered on the MERS® System. Interim funding interests must be released separately.g. the current Investor. The lender/seller of the beneficial interest initiates the transfer of beneficial rights outside of MERS (e. it cannot be canceled. The automated transaction that reprocesses MINs that have been rejected due to reason of non-registration. The cycle and reprocess occurs for 10 calendar days from the effective Transfer Date.MERS® Lite Member A lender that has signed a MERS Member Agreement solely so that it can sell loans with MERS as the nominee for the lender on the security instrument to other MERS Members.mersonline. Once the X12 file is submitted. An electronic registry that tracks changes in loans servicing and beneficial ownership rights. Then the new Investor confirms the transfer. MERS as the Original Mortgagee. may or may not be the actual date on which interest begins to accrue (see Funding Date). or Subservicer creates a beneficial rights transfer transaction. The Investor sends confirmation of the transfer to MERS through an X12 transaction. In some states.

35 . and transactions reflecting seasoned servicing transfers between the Org IDs named in the relationship are billed as Intracompany Transfer rather than Seasoned Servicing Transfer fees. and its Org ID and Name are displayed for Originating Organization. Transaction used to activate a loan previously registered as a Pre-Closing on the MERS® System when the loan closes. required for securitization. Contact for inquiries about maintenance of properties. The current Servicer is responsible for entering the recording information on the MERS® System. MINs deactivated by Paid in Full or Foreclosure Complete cannot be reactivated. Parent/Child Relationship Passive Investor Pool Number Pre-Closing Post-Closing Primary Borrower Property Preservation Company Property Preservation Contact Quality Review Flag Reactivation Recordation Registrar An indicator that the information required to perform a lien release or an assignment is accurate and complete on the MERS System. The entity listed as Trustee on the Deed of Trust. The process of activating a previously deactivated MIN for the same borrower. If the originator is a MERS Member. An Option 2 Investor that is a Member of MERS but does not actively confirm transfers to or from it on the MERS® System. and lien type. if not a MERS Member. that Member’s Org ID is entered in the Originating Org ID field. Relationship established by MERS on the MERS® System for Members who execute a Parent/Child Agreement.Organization Identification Number (Org ID) Original Borrower Original Note Holder Original Trustee Originating Org ID Originating Organization A MERS assigned seven-digit number uniquely identifying a Member of MERS. Only the parent Org ID is billed Membership fees. The loan originator. May be different from the current borrower on a loan if the loan has been assumed. The first borrower listed on the Security Instrument is the Primary Borrower for that loan on the MERS® System. The number assigned to a grouping of loans by the Investor. Displayed as Originating Organization. property. The seven digits of the Org ID comprise the first seven digits of the 18-digit MIN. The Org ID of the loan originator. Each additional borrower listed on the Security Instrument is a Co-Borrower for that loan on the MERS® System. the originator’s name is entered in the Original Note Holder field and displayed for Originating Organization. The entity listed as the borrower on the original note. MERS Quality Assurance Procedures – Release 19. May be registered as an active iRegistration. MERS Member with which a Servicer or Subservicer contracts to maintain a property. The act of recording the loan assignment and/or security instrument in the public land records. or NonMOM when the loan closes. Loan registered on the MERS® System before the note date with a status of PreClosing (not active). If the originator is not a MERS Member. but a Pre-Closing may not be updated or included in any other transaction except Registration Reversal. MOM.05 – 6/14/10 Draft Glossary . This organization’s Org ID and Name are displayed as Originating Organization. A company to whom a Member has contracted business activities such that the Registrar would be the initiator of the business activity that triggers a transaction to the MERS® System. The originator of the loan.

Transaction used to reflect a Transfer of Beneficial rights on the MERS® System. The entity that has the contractual right to service a loan and responsibility for the servicing of the loan for the Investor.g. A loan registered on the MERS System more than 270 days after the note date.Registration Registration Reversal Sale Date (servicing rights) Seasoned Loan Registration Seasoned Transfer Security Instrument (SI) Security Instrument Recording Date Security Instrument Type Sequence Number Servicer The process of entering required information into the MERS System to report to MERS that a loan exists with MERS as the Mortgagee. both the Servicer and the Subservicer must be MERS Members to register the loans on the MERS System. These transfers are tracked for MERS Members on the MERS® System. The Subservicer is not the legal owner of servicing rights. This system was previously named the Voice Response Unit (VRU). A seasoned loan transfer fee is charged to the seller for seasoned servicing transfers. The entity with whom the Servicer has contracted to service its loans. The 10-digit number assigned by the MERS Member to uniquely identify a loan. Transaction used to reflect a Transfer of Servicing rights on the MERS® System. the date the contractual servicing rights are transferred from seller to buyer. The sale of servicing rights from the current Servicer to a new Servicer. In a servicing transfer. If so. The 10 digits of the sequence number comprise the 8th through 17th digits of the 18digit MIN. See Beneficial Rights Transfer. Transaction used by an Option 1 Investor to reflect a Transfer of Servicing Rights on the MERS® System due to default by servicer. The date the security instrument was recorded in the county recorder’s office. The ownership rights of the current Servicer for servicing loans. Telephone-based access to the MERS System. mortgage or deed of trust). Indicates whether the security instrument is a deed of trust. This date is stipulated in the Purchase and Sale Agreement. mortgage. MERS defines “seasoned” as Transfer Date more than 270 days after the note date. Also the name of the browser-based system available to the public (MERS® Servicer ID). See Servicing Rights Transfer. it’s a method of transmitting information directly from a Member or vendor system to the MERS® System. The process of reversing a loan that was registered in error. Servicer Identification System number: 888-679-MERS(6377) Servicer Identification System (SIS) Servicing Rights Servicing Rights Transfer SIS Number Standard EDI Format Subservicer System to System TOB TOS TOS Option 1 (default by servicer) Accredited Standards Committee X12 standard. A formal legal document securing repayment of a debt (e. MERS Quality Assurance Procedures – Release 19.36 . An alternative to using MERS ® OnLine. or land contract. This includes flat files and EDI X12 transmissions.05 – 6/14/10 Draft Glossary . or to reflect an iRegistration. In some cases the Servicer contracts with a Subservicer. It allows anyone to query the system to obtain information on the current servicer on a MERS-registered loan.

Both flow and seasoned loans may be included in this transfer. Their interest in each loan is released automatically when servicing is transferred. the date the responsibility for servicing the loans passes from seller to buyer.37 .05 – 6/14/10 Draft Glossary . Investor is not a MERS Member. contracts. In most cases this will be concurrent with the funding date by the new Investor. and other records within the enforcing state.TOS/TOB Combo Transfer Cancellation Date Transfer Creation Date Transfer Date (beneficial rights) Transfer Date (servicing rights ) Transfer to Non-MERS MemberStatus Trustee UETA Transaction used to reflect a simultaneous transfer of beneficial rights and servicing rights to an Option 2 Investor. updates to previously null fields. The date beneficial ownership of a loan is transferred from one Investor to another. the user creates and assigns the element names. The date that the transfer transaction is initiated on the MERS System. One who holds title to real property under the terms of a deed of trust. The date the transfer transaction is canceled on the MERS System if all MIN confirmations and rejections are not received. it may take the place of the provisions of ESIGN. and/or the Member no longer wishes to track it as an iRegistration on the MERS® System. According to the Purchase and Sale Agreement between the buyer and the seller. A predefined non-proprietary layout at a transaction set level. XML is a markup language designed specifically for delivering information over the World Wide Web. Transaction used to look up information on loans matching search criteria entered using an XML request. Undisclosed Investor Update Vendor Warehouse/Gestation Lender X12 Format XML XML Inquiry MERS Quality Assurance Procedures – Release 19. when enacted by a state. A change to information outside of a previously defined business process (corrections. In creating an XML document. This is the recommended format for system-to-system transmissions to the MERS® System. Contact Servicer or Subservicer for information. The Warehouse/Gestation Lender has view only access to the loan on the MERS® System. Extensible Markup Language. A uniform form of statute that various states have enacted to establish the legal validity and enforceability of electronic signatures. Transaction used to deactivate a loan on the MERS® System when it is assigned out of MERS. Uniform Electronic Transaction Act. etc. Associated Member with an interim financial interest on a loan prior to the sale of the loan to the permanent Investor. and/or servicing is transferred to a Non-MERS Member.) A MERS Member who performs various transactions on the MERS® System on behalf of another Member under a contractual agreement.

0 (see draft for changes) Revised 6/4/07 for Release 14.0 (see draft for changes) Revised 12/9/07 for Release 15.38 .0 (see draft for changes) Revised 6/14/10 for Release 19.0 (see draft for changes) Revised 6/16/08 for Release 16.Revision History: Revised 6/5/06 for Release 12.05 – 6/14/10 Draft Glossary .0 (see draft for changes) MERS Quality Assurance Procedures – Release 19.0 (see draft for changes) Revised 12/8/08 for Release 17.0 (see draft for changes) Revised 6/9/09 for Release 18.