Mortgage Electronic Registration Systems (MERS) is an industry initiative to simplify the way mortgage ownership and servicing rights are registered, transferred and tracked. The purpose is to mitigate problems with missing assignments, a primary source of delay in transferring ownership.

Electronic MERS Registration
Stewart Mortgage Information is a MERS-Preferred Service Provider and is the first authorized registrar to register loans on the MERS system. Stewart National Order Center (NOC) customers who are also members of MERS can electronically register loans through Order Pro direct integration.

The Process
The first process is the generation of the mortgage identification number (MIN). The MIN is assigned to each loan registered with MERS to track the mortgage rights throughout the life of the loan. Within hours of the transfer of ownership or servicing rights, updated information will be reflected in each affected loan record. This assures proper notification to all parties that the loan is maintained, reducing errors and eliminating the need for further assignments.

MERS then becomes the original mortgagee of record when one of the following steps occur:

1. The lender records an assignment to MERS
2. The lender closes the loan using the standard instrument containing language approved by Fannie Mae and Freddie Mac, which names MERS as the original mortgagee and the nominee for the lender.

MERS Benefits

• Eliminates intervening recorded and unrecorded assignments
• Reduces paperwork
• Increases efficiency and profitability of trading servicing rights
• Improves data integrity and liquidity of servicing assets
• Reduces fraud
• Simplifies investor certification and due diligence
• Streamlines the lien release process
• Enhances accuracy and timely access to pay-off information