Default: Keep Me Up To Date

Julia Macnair Rachel Weber

Agenda
     Property preservation Loss mitigation Modifications Subordinations Assumptions     Bankruptcy Foreclosure Taking title Q&A

Property Preservation

title.Member Profile Changes  New member contact type – Property preservation contact: name. phone and email – Visible on Member Summary page in MERS® Link .

MIN Registration/Update  Property preservation Org IDs – Added during MIN registration – Added to an active MIN – Added to MIN in Foreclosure Complete status .

MIN Summary Information  Property preservation contact visible – MIN summary – MERS® Link summary (if populated)  Org ID is hyperlink to Member Summary page with property preservation contact information  Org name is hyperlink to property preservation company’s URL .

Property Preservation Kate Bonthius.org . Business Integration Manager Direct: (703) 761-1283 Fax: (703) 748-0183 kateb@mersinc.

Loss Mitigation .

Paid In Full  Liquidation via lien released/extinguished in land records – Deed in lieu – Short sale – Charge-off (See Training Bulletin 2009-04): only applicable when lien release is recorded – Third party foreclosure – Payoff (performing loan) .

only subservicer can perform transaction .Paid in Full  Paid in full deactivation – If subservicer is named.

Paid In Full QA: Transactional Standards  Payoff – Change MIN status to “Paid In Full.” enter the Servicer Liquidation Date (Effective Payoff Date) on the MERS® System within seven calendar days of payoff or deactivation date on company’s servicing system .

as mortgagee. signed as MERS by officer authorized on MERS corporate resolution . Inc.Paid In Full QA: Document & Recording Standards  Lien release/reconveyance/discharge /satisfaction  Payoff or partial release for MOM and non-MOM: – Prepare lien release naming Mortgage Electronic Registration Systems.

Paid in Full QA: Document and Recording Standards  Place MIN and Servicer Identification System phone (888-679-6377) on visible location on page 1 of lien release but not in space reserved for county recorder  Send lien release for recording within state/countyimposed timeframes. whichever is shorter . or within 45 calendar days after effective payoff date.

grouped by deactivation reason .Paid In Full Reports  Paid in Full Verification Report (DK) – All payoff transactions or reversals entered in previous processing cycle  Payoff Reject Report (DP) – All batch payoff transactions or reversals. along with reason for rejection  Deactivation Summary Report (DD) – All MINs deactivated since last processing cycle. rejected in previous cycle.

it is considered Paid in Full . if you “write off” or “charge off” the last $100 of a loan and release the lien. the loan must be deactivated as Paid in Full on the MERS® System – For example. 06/30/2009  If a lien release or satisfaction is recorded for the loan. Reflecting Charge Offs on the MERS® System. Number 2009-04.Reflecting Charge Offs on the MERS® System  Training Bulletin.

Reflecting Charge Offs on the MERS® System  If the lien has been extinguished. the loan must be deactivated on the MERS® System because lien is no longer valid – If a Deed in Lieu of Foreclosure is accepted. a Paid in Full deactivation is used even if no lien release or satisfaction has been recorded. because lien is extinguished by new deed – Use date the transferred deed was sent for recording as Lien Release Sent Date .

use a Transfer to Non-MERS Member deactivation – Enter 9999999 for New Servicer Org ID and your organization’s name and address for the Assignee – Example: second lien extinguished as a result of foreclosure completed on first lien for that property .Reflecting Charge Offs on the MERS® System  If you still intend to collect on now unsecured note.

no deactivation needs to occur on the MERS® System  Loan remains active on the MERS® System until either satisfied on property sale or extinguished by recording of new deed at which time the loan must be deactivated as outlined above  Questions? Contact MERS Product Performance Department: ppd@mersinc.Reflecting Charge Offs on the MERS® System  If lien remains valid even if accounting shows loan as charged off.org .

second loan or junior lien gets wiped out  Doesn’t release borrower from debt  Lender pursues collection via promissory note signed by the borrower  Lender may charge off debt but pass it to collection agency for recovery  MERS® System must reflect appropriate status .Impact On Junior Lien Holder  In general: when first mortgage is in foreclosure.

Modifications .

To record or not to record…  If your investor requires you to record modification agreement. modification info (including recording information) must be entered into MERS® System .

. loan modified during bankruptcy) – County land records: abide by MERS QA document and recording standards for modifications .Training Bulletin 2008-07  Modification agreement volumes on the rise  Must maintain current lien information – System  Must include modification updates and recording details  Applicable to “cramdowns” (i.e.

org) .MERS® System Release Bulletin 17.0  Lets members use batch update transaction to add new modification agreement  All modification agreement information must be provided. or EDI Implementation Guide for EDI X12 specifications (www.mersinc. including recording information  Batch process does not support updates to existing modification agreement  See Technical Integration Handbook for flat file specifications.

as mortgagee. signed by lender representative in individual’s own capacity  Place MIN and Servicer Identification System phone (888-679-6377) in visible location on page 1 but not in space for county recorder  Send modification for recording (if required) no later than 7 calendar days after effective date of agreement . Inc.QA Document and Recording Standards For Mom and Non-MOM Loans  Prepare doc naming Mortgage Electronic Registration Systems. signed as MERS by certifying officer.

Subordinations .

Transactions & Documents  Lien type indicator – Registration – MIN update  Sample documents in the Quality Assurance Procedures Manual – Subordination agreement – Subordination of lien .

Document & Recording Requirements For MOM and Non-MOM Loans  Prepare doc naming Mortgage Electronic Registration Systems. signed by lender representative in individual’s own capacity  Place MIN and Servicer Identification System phone (888-679-6377) in visible location on page 1 but not in space for county recorder  Send document for recording (if required) no later than seven calendar days after effective date of agreement . Inc. signed as MERS by certifying officer. as mortgagee.

Assumptions .

Assumptions  Servicer or subservicer of MIN must update borrower info on MERS® System when loan is assumed  Action = assumption when – new borrower legally assumes responsibility for outstanding mortgage debt – new borrower is added to existing loan obligation – existing borrower is legally removed from outstanding mortgage debt .

Assumptions  During assumption all borrowers who remain obligated for loan must be entered as current borrowers .

Document & Recording Requirements For MOM and Non-MOM Loans  Prepare doc naming Mortgage Electronic Registration Systems. as mortgagee. signed by lender representative in individual’s own capacity  Place MIN and Servicer Identification System phone (888-679-6377) in visible location on page 1 but not in space for county recorder  Send document for recording (if required) no later than seven calendar days after effective date of agreement . Inc. signed as MERS by certifying officer.

Bankruptcy .

AND – remain consistent with this decision . servicer should choose: – to reinstate loan.Bankruptcy  Training Bulletin 2008-6: bankruptcy dos and don’ts  No special transactions on the MERS® System  If bankruptcy halts foreclosure. OR – keep in Foreclosure Pending mode.

 Disclose to court MERS/servicer relationship  If filed in name other than MERS. Inc. an assignment from MERS must be filed and recorded .  Motion for Relief from Stay may be filed in name of MERS. a proof of claim can be filed in the name of Mortgage Electronic Registration Systems. MERS must also be the note holder. If MERS is the moving party.Bankruptcy  When debtor declares bankruptcy.

Foreclosures .

Foreclosure Dos and Don’ts When a member files a foreclosure in the name of MERS:  DON’T allege that MERS “owns” the note  DO always plead that MERS is the mortgagee as nominee of lender. certifying officers cannot file Lost Note Affidavit in the name of MERS . its successors and assigns  DON’T file foreclosure action as MERS if alleging note is lost.

org) and send copy of lawsuit or counterclaim  See MERS Rules of Membership.Foreclosure Dos and Don’ts  DO make sure note is endorsed in blank at the time of foreclosure so MERS can be the holder  DON’T plead MERS as a co-plaintiff  DO contact the MERS Law Dept. Rule 8 for additional information . promptly if borrower files counterclaim or contests MERS’ standing (800-646-6377 or mers@mersinc.

See Rule 8.In Florida…  MERS has legal right to foreclose. Must assign out. . but chooses not to exercise this right.

Other Foreclosure Reminders Per Anouncement Bulletin 2009-06
 If a member is named as defendant in lawsuit involving MOM mortgage loan that the member originated, and MERS is not named as a defendant, please alert MERS Law Department right away (mers@mersinc.org). This should be done even when the MERS member no longer holds any interest in the mortgage loan. Do not simply ignore the lawsuit.

Other Foreclosure Reminders Per Anouncement Bulletin 2009-06
 Any MERS member foreclosing a loan in member’s name, or having MERS foreclose the lien as mortgagee, and MERS holds another mortgage lien for another mortgage loan on the property, member should instruct its counsel that MERS must be named as a defendant as the mortgagee for other mortgage loan and be served with the lawsuit

Other Foreclosure Reminders Per Anouncement Bulletin 2009-06
 Make sure that when MOM mortgages are recorded, county recorders and clerks are indexing mortgages correctly to reflect MERS as the mortgagee, grantee, etc.  Provide counsel representing MERS with proper documentation, information and an explanation of MERS and its interest in the mortgage.  When in doubt, contact MERS Law Dept (mers@mersinc.org)

assigned to Servicer – Execute and record assignment from MERS (indicates loan will not be in MERS’ name for foreclosure process)  Servicer or subservicer must update MERS® System at the time of first legal action – within seven calendar days of date on your servicing system – If subservicer is named.Pending (Option 1). then only subservicer can perform this transaction . assigned to Servicer  Pending (Option 1).

Pending (Option 1). Inc. to other entity  Place MIN and Servicer Identification System phone (888-679-6377) in visible location on page 1 of assignment  Assignment must be signed by individual authorized on member’s MERS corporate resolution  Send assignment for recording within 14 calendar days of status change on the MERS® System . assigned to Servicer Assignment Standards  Prepare assignment from Mortgage Electronic Registration Systems.

Pending (Option 2). then only subservicer can perform transaction . retained on MERS  Pending (Option 2). retained on MERS indicates loan will remain in MERS’ name throughout foreclosure process – Within seven calendar days of first legal action – If subservicer is named.

iRegistration only  New for iRegistrations: – iRegistration can only be entered into Pending (Option 3). iRegistration – Loan can be either reinstated into unique Option 3 reinstatement or deactivated by Foreclosure Complete .Pending (Option 3).

iRegistration only  iRegistrations blocked from using Foreclosure Pending (Option 1).Pending (Option 3). Assigned to Servicer  MIN Find group search can now search for new foreclosure statuses  XML MIN Inquiry and Servicer History Responses will provide new foreclosure statuses .

Reinstate or Modify (Option 1)  If MIN reinstates or modifies after pending status is reported. then only subservicer can perform transaction . MERS® System must be updated  If subservicer is named.

Reinstate or Modify (Option 1)  Pending (Option 1)  Reinstated or Modified (Opt 1) – Assigned back to MERS: if recording an assignment back to MERS – Not assigned back to MERS–Deactivate: if loan not assigned back to MERS and deactivated from MERS® System – Convert to iRegistration: MOM and Non-MOMs in Foreclosure Pending (Option 1). Assigned to Servicer: can be reinstated as an iRegistration if loan not assigned back to MERS but kept active as an iRegistration .

Inc.Reinstate or Modify (Option 1) Assigned Back to MERS  If reinstating or modifying (Option 1) back to MERS. then assignment from servicer/investor/insurer back to MERS must be executed – Prepare assignment to Mortgage Electronic Registration Systems. – Place MIN and Servicer Identification System phone (888-679-6377) in visible location on page 1 of assignment – Send assignment for recording within 14 calendar days of status change on the MERS® System .

mersinc. www.org . .All of the document samples can be downloaded from the MERS® Corporate Website.

then only subservicer can perform transaction .Reinstate or Modify (option 2)  Pending (Option 2) Reinstated or Modified (Option 2) – Within seven calendar days – If subservicer is named.

then only subservicer can perform transaction .Reinstate or Modify (option 3)  Pending (Option 3) Reinstated or Modified (Option 3) – Within seven calendar days – If subservicer is named.

then only subservicer can perform transaction .Foreclosure Complete REOs  Deactivation transaction on the MERS® System  When loan in foreclosure sale and redemption period expired. Foreclosure Complete transaction must be performed: – Within 7 calendar days – Remain consistent using sale date or redemption expiration date – If subservicer is named.

perform Foreclosure Pending transaction . then only subservicer can perform transaction  To update/correct Reinstated or Modified MIN status.System Corrections  Pending foreclosure status entered in error or status now invalid: perform Foreclosure Status Reset transaction to change MIN back to active  If subservicer is named.

perform reversal transaction to return MIN to previous status – Servicer and subservicer can perform deactivation reversal transaction .System Corrections  If Foreclosure Complete has been reported in error or sale rescinded.

Foreclosure Reports  Foreclosure Verification Report (DA) – Foreclosure transactions successfully entered since previous processing cycle  Foreclosure Reject Report (DF) – Batch foreclosure transactions rejected during previous cycle .

Foreclosure Reports  Past Due Foreclosure Terminations Report (DI) – MINs in foreclosure pending that exceeded days without update to foreclosure or MIN status  Deactivation Summary Report (DD) – MINs deactivated since last processing cycle .

Taking Title .

NM.SD. MN. your MERS corporate resolution appoints certifying officers with authority to execute deeds on behalf of MERS . TX and VT  Subsequent deed must be issued asap to servicer/ investor so MERS is not titleholder for extended period  If this happens. MI.Taking Title  In general MERS should not take title at end of foreclosure  May be unavoidable in CT. MT. LA.

Rule 8 .Reference Materials  Training Bulletin 2008-06: Reminder of Requirements Regarding Motions for Relief from Stay and Proof of Claims filed by MERS  Training Bulletin 2008-04: What a “MERS in Title” Notification Means  Training Bulletin 2008-03: Member Responsibility to Update MERS® System Regarding Foreclosure Events  Announcement 2005-05: MERS Suspends Foreclosures in Florida  Rules of Membership.

Q&A .