Procedures ManualRelease 23.0 Effective Date: December 10, 2012 MERS® System Procedures Manual – Release 23.0 – 12/10/2012Error! No text of specified style in document. • i Contents INTRODUCTION .......................................................................................................................... 1 PURPOSE .........................................................................................................................................1 STRUCTURE ......................................................................................................................................1 MEMBERSHIP IN THE MERS SYSTEM ......................................................................................... 3 OVERVIEW .......................................................................................................................................3 IMPACT............................................................................................................................................3 BUSINESS PROCEDURE – MEMBER INTEGRATION .....................................................................................3 BUSINESS PROCEDURE – USING A THIRD PARTY ORIGINATOR ....................................................................4 BUSINESS PROCEDURE – MEMBER RESIGNATION .....................................................................................5 REPORTS ..........................................................................................................................................6 SYSTEM SECURITY ...................................................................................................................... 7 OVERVIEW .......................................................................................................................................7 Org ID Overview ......................................................................................................................8 IMPACT............................................................................................................................................8 BUSINESS PROCEDURE—MERSCORP HOLDINGS ...................................................................................9 BUSINESS PROCEDURE—MEMBER........................................................................................................9 BUSINESS PROCEDURE—WHEN USING THIRD PARTY SERVICE PROVIDERS..................................................11 BUSINESS PROCEDURE – ASSOCIATED MEMBER ....................................................................................11 REPORTS ........................................................................................................................................12 BUSINESS PROCEDURE — MY MERS .................................................................................................12 BUSINESS PROCEDURE — TRANSACTION DEFAULT SETTINGS ...................................................................13 REPORTS ........................................................................................................................................14 MEMBER INFORMATION .......................................................................................................... 15 OVERVIEW .....................................................................................................................................15 IMPACT..........................................................................................................................................16 BUSINESS PROCEDURE—MEMBER......................................................................................................16 MERS® System Procedures Manual – Release 23.0 – 12/10/2012Error! No text of specified style in document. • ii ® ® BUSINESS PROCEDURE—MERSCORP HOLDINGS .................................................................................19 REPORTS ........................................................................................................................................20 BUSINESS PROCEDURE - MEMBER LOCKOUT .........................................................................................20 BUSINESS PROCEDURE - MEMBER NOD DISPUTE ..................................................................................20 REPORTS ........................................................................................................................................21 MEMBER CORPORATE NAME CHANGES ................................................................................... 22 OVERVIEW .....................................................................................................................................22 IMPACT..........................................................................................................................................22 BUSINESS PROCEDURE ......................................................................................................................22 REPORTS ........................................................................................................................................23 MORTGAGE IDENTIFICATION NUMBER (MIN) .......................................................................... 24 OVERVIEW .....................................................................................................................................24 IMPACT..........................................................................................................................................25 BUSINESS PROCEDURE FOR CREATING A MIN .......................................................................................25 MOM AND NON-MOM LOAN REGISTRATION ........................................................................... 28 OVERVIEW .....................................................................................................................................28 IMPACT..........................................................................................................................................29 BUSINESS PROCEDURE – INITIAL REGISTRATION .....................................................................................30 BUSINESS PROCEDURE – POST-CLOSING REGISTRATION ..........................................................................33 BUSINESS PROCEDURE – RE-REGISTRATION AFTER REVERSAL ...................................................................34 BUSINESS PROCEDURE – RE-REGISTRATION AFTER DEACTIVATION ............................................................35 REPORTS ........................................................................................................................................37 IREGISTRATION......................................................................................................................... 38 OVERVIEW .....................................................................................................................................38 IMPACT..........................................................................................................................................39 BUSINESS PROCEDURE – IREGISTRATION ..............................................................................................39 BUSINESS PROCEDURE – POST-CLOSING IREGISTRATION .........................................................................42 BUSINESS PROCEDURE – IREGISTRATION AFTER REVERSAL .......................................................................43 MERS® System Procedures Manual – Release 23.0 – 12/10/2012Error! No text of specified style in document. • iii BUSINESS PROCEDURE – IREGISTRATION AFTER DEACTIVATION.................................................................45 REPORTS ........................................................................................................................................46 CONVERSION FROM IREGISTRATION TO NON-MOM ................................................................ 47 OVERVIEW .....................................................................................................................................47 IMPACT..........................................................................................................................................47 BUSINESS PROCEDURE ......................................................................................................................48 REPORTS ........................................................................................................................................49 PRE-CLOSING REGISTRATION .................................................................................................... 50 OVERVIEW .....................................................................................................................................50 IMPACT..........................................................................................................................................50 BUSINESS PROCEDURE – PRE-CLOSING ................................................................................................51 BUSINESS PROCEDURE – PRE-CLOSING AFTER REVERSAL .........................................................................53 REPORTS ........................................................................................................................................55 REGISTRATION REVERSAL ......................................................................................................... 56 OVERVIEW .....................................................................................................................................56 IMPACT..........................................................................................................................................56 BUSINESS PROCEDURE ......................................................................................................................57 REPORTS ........................................................................................................................................57 REVERSE MORTGAGE PROCESSING........................................................................................... 58 OVERVIEW .....................................................................................................................................58 IMPACT..........................................................................................................................................58 BUSINESS PROCEDURE ......................................................................................................................58 CONSTRUCTION LOAN PROCESSING ......................................................................................... 59 OVERVIEW .....................................................................................................................................59 IMPACT..........................................................................................................................................59 BUSINESS PROCEDURE–ONE-STEP CLOSING .........................................................................................59 Closed on a MOM Security Instrument ...................................................................................59 Closed on a Standard Security Instrument and Assigned to MERS .........................................60 MERS® System Procedures Manual – Release 23.0 – 12/10/2012Error! No text of specified style in document. • iv ................................................................................76 Overview ...............................................................78 IMPACT..............................71 Business Procedure—Option 2 .......................................................................................................................78 BUSINESS PROCEDURE—TOB OPTION 1 ........................................................................................................................................................................................................................................................................................................................................79 BUSINESS PROCEDURE—TOB OPTION 2 ..........................................................................79 MERS® System Procedures Manual – Release 23...............................66 TRANSFER OF BENEFICIAL RIGHTS ........................................................................................................................76 Reports ............................................64 REPORTS ...................77 REMOVING INTERIM FUNDER SECURITY INTERESTS ..............61 BUSINESS PROCEDURE–TWO-STEP CLOSING ............................................67 Option 1 ......................64 IMPACT.........76 Impact .........................................................................................................65 TRANSFER OF BENEFICIAL RIGHTS .............................................................................................................................. 68 Impact.............................72 Processing................................................76 Business Procedure .........................................................................................................................0 – 12/10/2012Error! No text of specified style in document.......................................................................................................................................... 78 OVERVIEW ............................................................................................. 66 OVERVIEW ....................................................................................................................................................................................................................................................................................................................67 Overview ................................................................................................. 67 Option 2 ........Closed on a Standard Security Instrument and Not Assigned to MERS (iRegistration) .......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... • v .................................................. 64 OVERVIEW .................................62 REGISTERED LOANS IN RATED SECURITIES ...............................................................75 TRANSFER OF BENEFICIAL RIGHTS TO NON-MEMBER INVESTORS................................................................................................................................................................................................71 Business Procedure—Option 1 ................................................................................64 BUSINESS PROCEDURE ..........................73 Reports ................................... ......... 84 OVERVIEW ...................................92 PROCESSING ................................................................................................................................................................................................................................................................................................................80 REMOVING WAREHOUSE/GESTATION LENDER SECURITY INTERESTS ................................................................................................................................................................................................................... 90 Investor Confirmation ..........................................................86 FLOW TRANSFER OF SERVICING RIGHTS..................................................................97 TRANSFER DATES ...........................................................................................89 Note Date .................................................... 89 Sale Date and Transfer Date ........................................................................................................................82 BUSINESS PROCEDURE—TOB OPTION 2 ................. 89 SEASONED TRANSFER OF SERVICING RIGHTS ....................................................................................................................................................................................................................... 97 OVERVIEW ..........................................................................................................................................97 IMPACT..........................................................................................................................................................................................................................REPORTS .................................................................................. 89 No Investor Confirmation of Flow Transfer of Servicing ...................................81 BUSINESS PROCEDURE—TOB OPTION 1 .......................................................................................................... 88 Sale Date/Transfer Date ................................82 REPORTS ..................88 Note Date .......................................................................81 IMPACT.......................................................................................................................................95 REPORTS .......................................................................................................................................................... • vi ....................................................96 TOS/TOB COMBINATION ..............83 TRANSFER OF SERVICING RIGHTS ........................ 81 OVERVIEW ..........................................................................84 IMPACT..........................................................................100 MERS® System Procedures Manual – Release 23.............................................................................................................................................................................98 BUSINESS PROCEDURE ........................................................................... 90 Involuntary Transfer/Default by Servicer—Loans transferred to a MERS® System Member 90 Involuntary Transfer/Default by Servicer—Loans transferred to a non-Member Servicer .............................................0 – 12/10/2012Error! No text of specified style in document...........................................................................................93 BUSINESS PROCEDURE .............................................................................................................................................................................................................................. ....................................104 FORECLOSURE AND BANKRUPTCY ............................................................................................................................................................................................ • vii ....................................................................................................... 106 Foreclosure and MIN Deactivation .....................104 Reports .................................................... DEEDS IN LIEU..................................101 DEACTIVATIONS ................................................................................................................................................................................................................................................................................................................................................................................108 PAID IN FULL (INCLUDES SHORT SALES......111 Impact ........................................................................103 DEFAULT BY SERVICER ..............................................................................................0 – 12/10/2012Error! No text of specified style in document......................................................................................................................................................................................................................................................REPORTS .................................................................................................................................................109 Impact ..... AND CHARGE OFFS NOT ASSOCIATED WITH A FORECLOSURE COMPLETION) .....................................................................................................................113 MERS® System Procedures Manual – Release 23........................................................................................................................................................................110 Reports ...................................................110 TRANSFER TO NON-MERS STATUS ..................................................................................................................................... 103 OVERVIEW .............109 Business Procedure—Paid in Full ...........................108 Reports ...........................................................................................................................................................................................................111 Business Procedure—Transfer to Non-MERS Status ..........................................109 Overview ........................................103 Impact .................................................................... 105 iRegistration Loans ....105 Overview ..............................................................111 Overview ............................................................................. 113 OVERVIEW .................................... 107 Impact .........................................112 DEACTIVATION REVERSALS...........................................................................................................................................................................................................................................................................................105 MOM and Non-MOM Loans ................................................................................................................................................................107 Business Procedure .....................................111 Reports ...............................................................103 Business Procedure ................................................................................................................................................................................... ............................................121 IMPACT.......................................................................................................................................................................123 IMPACT.......................................124 BUSINESS PROCEDURE ................................................................................................................................................................................................................................................ 126 OVERVIEW ..............................................................................126 IMPACT............................................................................................................................................. 121 OVERVIEW ............. • viii ....................................................................................................................................................................................................124 REPORTS ....................................................................................................................................................122 REPORTS ...............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................115 BUSINESS PROCEDURE .......................117 IMPACT........128 BUSINESS PROCEDURE – REQUESTING A PORTFOLIO ANALYSIS REPORT ............................................... 117 OVERVIEW ............................................119 REPORTS ........................................................................................................................................128 MERS® System Procedures Manual – Release 23..............................125 REPORTING ................................................................................................................................................................................................................................127 BUSINESS PROCEDURE – RETRIEVING REPORTS..........................................................116 REPORTS ...............121 BUSINESS PROCEDURE ...............................................114 MODIFICATION AGREEMENTS ........118 BUSINESS PROCEDURE ..............................................................113 BUSINESS PROCEDURE ......... 123 OVERVIEW .....................................................IMPACT......................................0 – 12/10/2012Error! No text of specified style in document..................120 ASSUMPTION OF MORTGAGE ............................................................................................................122 PROPERTY PRESERVATION ............................................. EXTENSION.................................................................................................................................................. 115 OVERVIEW ..........114 REPORTS .......115 IMPACT................................................................................................................................................................................ AND MODIFICATION AGREEMENT (CEMA) ...................................................................116 CONSOLIDATION................................................................................................................................................................................................................................................................................................................................................................ ..........................................137 BUSINESS PROCEDURE ...................................139 BUSINESS PROCEDURE—XML INQUIRY ................140 BUSINESS PROCEDURE—BATCH INQUIRY ...................................................................................138 BUSINESS PROCEDURE—MERS LINK ............................................................................................................................................................................................................................................................................144 BUSINESS PROCEDURE ............................................... 143 OVERVIEW ........................ • ix ® ® ...................................................................................................................................................... 137 BUSINESS PROCEDURE ...........143 IMPACT.....................................154 MERS® System Procedures Manual – Release 23.................................153 Removing a MERS Signing Officer from a CR ..............................................0 – 12/10/2012Error! No text of specified style in document.............................................................................................................VIEW ONLY CONTACTS.................................. 135 OVERVIEW .. 131 OVERVIEW ............................................................................................................................................................153 Updating a MERS Signing Officer’s Information.........................................136 Initiate Problem Resolution .......................................................................................MERS SIGNING OFFICER CERTIFICATION .....................................................................130 MERSCORP HOLDINGS MAIL SERVICES .....................................................................................................PASSWORD CHANGES AND RESETS .....................................MAINTAINING MERS SIGNING OFFICER INFORMATION.............................................................................................................................................................MERS SIGNING OFFICER RECERTIFICATION............................................................................................................................132 BUSINESS PROCEDURE .......................................135 IMPACT..........................................................................................149 BUSINESS PROCEDURE ...................................................146 BUSINESS PROCEDURE ....134 MERSCORP HOLDINGS HELP DESK ..............................................................................................................................................................................................................144 BUSINESS PROCEDURE ............................................................INITIAL REQUEST FOR MERS CORPORATE RESOLUTION ......................REPORTS .............132 REPORTS ..................141 REPORTS .......................................................MERS SERVICERID ....142 CORPORATE RESOLUTION MANAGEMENT SYSTEM (CRMS) ...............................................................................................................149 BUSINESS PROCEDURE .................131 IMPACT............................................................................................................................................................SERVICER IDENTIFICATION SYSTEM (SIS)...............................136 BUSINESS PROCEDURE—HELP DESK......................................151 BUSINESS PROCEDURE ............................................ ..........................157 BUSINESS PROCEDURE – RULE 3 EXCEPTIONS....156 BUSINESS PROCEDURE – SIGNING AUTHORITY AGREEMENTS.................................164 QUALITY ASSURANCE POLICY ............162 SIGNING OFFICER BEST PRACTICES .......167 ANNUAL REPORT ...........................................................................................................154 BUSINESS PROCEDURE ......................................0 – 12/10/2012Error! No text of specified style in document............................................................................................................................................................................166 QUALITY ASSURANCE PLAN .....UPDATING THE MERS PROJECT MANAGER ....................................................................................................................................................................................................................... • x ........................................173 ® ADDITIONAL RECORDABLE DOCUMENTS PROCESSING STANDARDS .....................................................................................................166 MONITORING .......165 STRATEGY ........171 MERS AS ORIGINAL MORTGAGEE (MOM) SECURITY INSTRUMENT PROCESSING STANDARDS ........................................................160 Reactivation after “Resigned” Status ........................................174 MERS® System Procedures Manual – Release 23.....................................................................................................................................163 REPORTS ......................................................................................................................................173 LIEN RELEASE PROCESSING STANDARDS ....................................................................................................................................................................................172 IREGISTRATION PROCESSING STANDARDS ............................................................................................................................165 IMPACT..................................................159 BUSINESS PROCEDURE – STATUS CHANGES..................................................171 NON-MOM PROCESSING STANDARDS ........................................ 171 OVERVIEW .....................................................................................160 Change to “Resigned” Status............................................................................................................................................................................................................161 MERS CORPORATE SEALS ........................................................................................................................................................................................................................160 QUARTERLY ATTESTATION REQUIREMENT....................................................................168 Requirements: .173 LOAN INFORMATION PROCESSING STANDARDS .......................................................................................................................................................................................................................................................................................................................................................169 QUALITY ASSURANCE STANDARDS ........................................................................Adding a MERS Signing Officer .......................................... 165 OVERVIEW ........................... .........................186 Lien Release Document Review ..............................................................................................183 Reconciliation of MINs Naming a Resigning Member ..............................176 CORPORATE RESOLUTION MANAGEMENT SYSTEM (CRMS) UPDATE STANDARDS ...................... Property and First Lien – Monthly (RI) Report: ........................... 190 MERS® System Procedures Manual – Release 23...................................................................181 Loans reflected on the MINs for the Same Primary Borrower SSN.................................188 ADDITIONAL LEGAL-SPECIFIC GUIDELINES FOR DOCUMENT REVIEWS ..............................181 MERS Signing Officer Information on the CRMS: ....................................................................................................................................................................................................................................................................... 185 CHECKLIST ITEMS ....................................................................................175 DEACTIVATION PROCESSING STANDARDS.......................................................... • xi ....................................................................176 DATA INTEGRITY STANDARDS .........................................................................................................................................175 MEMBER INFORMATION UPDATE STANDARDS.....................................................................................................................183 QUALITY ASSURANCE REVIEW .........................189 MERS Signing Officer Name .............................................................................................................................186 iRegistration Document Review ................................................................................177 DATA RECONCILIATION STANDARDS .........................................................................................................................................................187 Bankruptcy Document Review...................................................................................................187 Foreclosure Document Review ...........................0 – 12/10/2012Error! No text of specified style in document...............................................................................................................................................................................................................................FORECLOSURE PROCESSING STANDARDS ........................................................................................................................................179 Loan Information .................................179 Member Information on the MERS® System ......... 189 MERS Signing Officer Title.............................................................. 190 Date Discrepancies ........175 SERVICE OF PROCESS STANDARDS ..............................185 MOM Security Instrument Document Review ............................................................................................................................................................................174 BANKRUPTCY PROCESSING STANDARDS..................................182 Member Reconciliation Extract (MRE) ...............182 Quarterly Reconciliation Extract (QRE).......................................................................................................................................185 Non-MOM Document Review. ...................................................................................................... 191 MERS Corporate Seal .................................................................................................................................................. 191 If the Document is an Assignment ......................................................................192 MEMBER INFORMATION REVIEW..........................................................0 – 12/10/2012Error! No text of specified style in document..................195 Sample Documents ...................... 192 DATA INTEGRITY REVIEW ........MERS is Accurately Described in the Document ..................................................................................196 GLOSSARY .............................................. • xii ...........................................................................................................................................................................................................193 Sample Documents for MOM Loans and Loans Assigned to MERS ..........................................................................194 SAMPLE CHANGES TO DEED OF TRUST OR MORTGAGE NAMING MERS AS THE ORIGINAL MORTGAGEE (MOM DOCUMENT) .......................... 197 MERS® System Procedures Manual – Release 23....... however. MERS® System Reports Handbook Provides descriptions of available MERS® Reports MERS® EDI Implementation Guide For Members who are using the EDI X12 interface • • These documents are available from the MERSCORP Holdings.Introduction Purpose This manual serves as an overview of how business processes in mortgage banking are affected by the MERS® System policies and procedures.org. Note that the Servicer named on the MERS® System is responsible for compliance with all MERS® System Procedures. and details the MERS® System requirements for Quality Assurance. Inc. Use this manual in conjunction with other sources of instruction and guidelines. (“MERSCORP Holdings”) member website members. Structure Each chapter contains four parts: MERS® System Procedures Manual – Release 23. the Subservicer must also comply with all MERS® System Procedures. Volume I Provides detailed information on becoming MERS® Ready MERS® Integration Handbook Volume II Provides the technical specifications for interacting with the MERS® System.0 – 12/10/2012 Introduction • 1 .mersinc. If the Servicer names a Subservicer on the MERS® System. including. This manual is of most use to Members that send flat file or EDI X12 transmissions. This information will help you assess the impact of the MERS® System on your own business and business processes. the Servicer remains responsible for compliance. but not limited to the following: • • • MERS® OnLine User Guide Gives step-by-step instruction for using MERS® OnLine MERS® Integration Handbook. Specific system instruction. is found in the MERS® OnLine User Guide. • • MERS® System Procedures Manual – Release 23. including systemrequired fields. The business procedure lists information that can be entered onto the MERS® System. see the MERS® System Reports Handbook.0 – 12/10/2012 Introduction • 2 . Chapter 18 .• Overview. Business Procedures. including business-related steps and general MERS® System instruction. The overview gives a brief description of the process or function and how it relates to the MERS® System. as well as what information is required by the MERS® System Quality Assurance Standards. For a detailed description of each report. Impact.Reports. This section lists reports produced during the business process. The business procedure gives a stepby-step view of the process. The impact states what types of organizations the process affects. including: o Identify an implementation Project Manager o Form an integration team o Notify technology vendors of your intention to become a MERS® System Member o Notify investors. document custodians. depending on their needs. and title companies. investors. and warehouse gestation lenders of your intentions to become a MERS® System Member o Set a target implementation date o Determine if new business partner agreements are needed • Once these preliminary steps are done. 2. Inc.0 – 12/10/2012 . During integration. The MERS EDI Implementation Guide ® is also available on the website. some are not. • You will be assigned an Org ID • The MERSCORP Holdings Membership Team will work with you on preliminary steps to get you ready for your MERS® System integration.org. to become a Member of the MERS® System. brokers. These participants include lenders. Some participants are Members.Membership in the MERS® System Overview Participants from all sectors of the real estate finance industry have varying levels of access to and use of the MERS® System. members. custodians. Impact This process has potential impact on all new MERS® System Members. Business Procedure – Member Integration For more detailed information regarding technical requirements and network connectivity. which is outlined in the following pages. Each Member goes through an application and approval process. Submit a completed MERS® System application to MERSCORP Holdings. you will: Membership in the MERS® System • 3 MERS® System Procedures Manual – Release 23. Offices. which is available on our member website at 1. the Membership Manager will recommend your company for integration. servicers. refer to ® the MERS Integration Handbook Volume II .mersinc. and you MERS® System Procedures Manual – Release 23. Inc. Inc. and submit your MERS® System quality assurance plan to MERSCORP Holdings Attend a MERS® OnLine training session Train your staff on the use of the MERS® System After integration. if needed Test the required servicing or origination system enhancements. If you buy closed loans from a broker or affiliate who is not a MERS® System Member. if needed Develop and implement a quality assurance program for the MERS® System.• • • • • • • • • • • 3. if needed Develop the required servicing or origination system and document preparation enhancements. (“MERS”) Confirm you can generate a valid MIN Document your revised MERS® System process flows Determine your system access and security levels in accordance with your line of business and transaction requirements Install system interfaces to the MERS® System. but must enter their Org ID in the Originating Org ID field. Confirm your implementation date Confirm your document preparation system has appropriate language regarding Mortgage Electronic Registration Systems.0 – 12/10/2012 Membership in the MERS® System • 4 . You may register the loans on the MERS® System for your broker or affiliate. you will: • Be given access to the Corporate Resolution Management System (CRMS) to propose officers of your company as MERS Signing Officers • Complete the Customer Integration survey Business Procedure – Using a Third Party Originator Any broker or affiliate originating “MERS as Original Mortgagee” (MOM) loans must be a MERS® System Member. you can have the originator assign each loan to Mortgage Electronic Registration Systems. e-mailed. Business Procedure – Member Resignation 1. the resignation will be finalized within 10 days of receipt of the written request. VA 20190 resignation@mersinc. Membership in the MERS® System • 5 MERS® System Procedures Manual – Release 23. entering the non-Member originator’s name in the Original Note Holder field. Inc.will need to register the loans on the MERS® System as NonMOM. or faxed to: MERSCORP Holdings. MERSCORP Holdings advises resigning Member of active loans on the MERS® System still listing their Org ID as a rights holder. you can use a value of 1011001 (Originating Org ID Exception) in the Originating Org ID field as a placeholder to register the loan. Inc. Member wishing to resign their membership provides written notification of the member’s intent to resign.org Fax: (703) 748-0183 If the resigning company’s membership was never activated and no active loans reflect its Org ID on the MERS® System. If you purchase a MOM loan that closed after March 31.0 – 12/10/2012 . 2. but you must update the loan with the correct Org ID within 60 calendar days. Suite 300 Reston. This placeholder Org ID is considered an exception for reconciliation and data reviews. 1818 Library Street. 2012 by an originator who has not yet completed the membership process or the system will not accept the Org ID that you are trying to enter. 3. Request may be mailed. within 30 calendar days the resigning Member either: • • Sells the loan to a MERS® System Member and completes the transaction(s) on the MERS® System to reflect the transfer or Assigns the mortgage/deed of trust out of the name of Mortgage Electronic Registration Systems. For all active loans listing the resigning Org ID as Servicer or Subservicer. Reports No reports are associated with obtaining or resigning your MERS® System membership. MERSCORP Holdings may update the MERS® System on behalf of the resigning member by locating the servicer and/or investor related to the applicable mortgage loans. 4. 8. MERS® System Procedures Manual – Release 23. For all active loans listing the resigning Org ID in any other rights holder field. Until the resignation process is complete. 6. The resigning Member remains responsible for responding to any service of process forwarded to their organization as a result of mail received by the MERSCORP Holdings Mail Center on their behalf. Member must pay all outstanding balances. the resigning Member remains responsible for all annual membership fees. 5. Any costs associated with finding this information are charged to the resigning Member. including any costs associated with transfer or deactivation transactions or external research. and deactivates the loan from the MERS® System using a Transfer to NonMERS Status deactivation transaction. To complete the resignation process.0 – 12/10/2012 Membership in the MERS® System • 6 . Members wishing to claim loans registered to the resigning Member may use the certificate process described in Reconciliation of MINs Naming a Resigning Member section. If Member is still named as a rights holder on any active loan after 30 days. the resigning Member contacts the Servicer/Subservicer of those loans to remove resigning Member as a rights holder within 30 calendar days. 7.(“MERS”) by preparing and recording an assignment in the applicable land records. 9. ). the MERS® System Members that are known as Registrars may be authorized by you to perform registrations. and cannot access transfer of beneficial rights or loan modifications. transfers. a Custodian can only view loans for which it is the Custodian. reactivates User IDs. MERSCORP Holdings assigns your Org ID.System Security Overview There are three levels of identity validation within the MERS® System security scheme: • Org ID • User ID • User Password Any attempt to access the MERS® System is denied unless all three tiers of security have been satisfied. contact information. the MERS® System stores your Member Information (lines of business. The System Administrator also resets passwords. Your System Administrator establishes User IDs and Passwords and assigns users to specific roles that enable certain levels of access in the MERS® System. Your MERS® System Administrator is responsible for establishing and maintaining the security that controls access to the MERS® System and specific processes within the MERS® System.g. but you may assign User IDs only to persons within your organization. For example. At the Org ID level. etc. when your membership application is approved. which identifies your organization. your organization may grant security access to a third party to process specific transactions (e. Your Lines of Business (LOBs) under Member Information determine which of the MERS® System functions you will be able to access. MERS® System Procedures Manual – Release 23.. See the MERS® OnLine User Guide for complete instructions on setting up and maintaining User IDs and security roles. and deletes unused User IDs. updates and deactivations on your behalf) by setting up a Vendor relationship. As defined by a contractual agreement.0 – 12/10/2012 System Security • 7 . Org ID Overview Your Org ID is one of the critical levels of identity validation in the MERS® System security scheme. One of the primary uses of the Org ID value is in the Originating Org ID field where it identifies the Member that originated a MOM loan. Note: The Original Note Holder field identifies the loan originator if the originator is not a MERS® System member. The MERS® System enforces the following validations on the Org ID value entered into the Originating Org ID field: • • • It is a required value on all MOM MINs registered after March 31, 2012. It must be a valid MERS® System Org ID. In Registration and Update transactions for MOM, NonMOM, and iRegistration MINs, the Org ID must belong to a Member that is assigned to least one of the following LOBs: • Originator Servicer Investor Third Party Originator (TPO) Subservicer Originating Org ID Exception In MOM Registration and Update transactions where the Originating Org ID belongs to a Member whose Line of Business is exclusively a Third Party Originator, the Member's Status must be "Active". As a result of this change, attempts to submit an inactive TPO Org ID in the Originating Org ID field either at Registration or via MIN Update will reject. Impact The security process affects the following organizations: • • All MERS® System Members MERSCORP Holdings Offices MERS® System Procedures Manual – Release 23.0 – 12/10/2012 System Security • 8 Business Procedure—MERSCORP Holdings Your Business Integration Resource (BIR) enters the following information on the MERS® System regarding your organization. • Org ID • Company Name • Corporate Address • Phone • Fax • Corporate website address • Parent company, if applicable • FHA approved indicator (Notify MERSCORP Holdings if this information changes; only MERSCORP Holdings can change this indicator on the MERS® System) • Agency ID(s) (Notify MERSCORP Holdings if this information changes; only MERSCORP Holdings can change Agency IDs on the MERS® System) • Organization’s Line(s) of Business • Contact information • Membership date Your BIR also provides the MERSCORP Holdings Help Desk and Mail Room with the email address you provide for official notices, including service of process we receive on your behalf. If this email address changes, you must notify the Help Desk immediately. Business Procedure—Member 1. Your MERS® System Project Manager identifies a MERS® System Administrator, who is responsible for the following tasks: • Assigning each user within your organization a unique User ID on the MERS® System. • • Assigning a security role to each User ID. Resetting passwords, deactivating User IDs and deleting User IDs and Security Roles no longer needed. System Security • 9 MERS® System Procedures Manual – Release 23.0 – 12/10/2012 • Providing access to the appropriate individual(s) in your organization who will maintain your Member Information section of MERS® OnLine including Address, Phone/Fax numbers, URL Address and Contact List. Giving authority to third party providers so they can perform specific functions on behalf of your company by setting up a Vendor relationship, but no third party may be provided a User ID under your Org ID. • 2. After your Business Integration Resource (BIR) has set up and activated your company on the MERS® System, your Operational Contact (or other designated party) is responsible for maintaining the accuracy of your data, and notifying MERSCORP Holdings if certain information changes. 3. Your organization is responsible for keeping the following information current once your organization is activated on the MERS® System: • Company Name (Notify MERSCORP Holdings if this information changes; only MERSCORP Holdings can change Company Name on the MERS® System) Corporate Address (Also notify MERSCORP Holdings if this changes) Phone (Also notify MERSCORP Holdings if this changes) Fax (Also notify MERSCORP Holdings if this changes) Corporate website address Investor Alternate Address and Indicator Servicer/Subservicer Alternate Address and Indicator Contact information (Also notify MERSCORP Holdings if primary contact changes.) • • • • • • • For the items where it states to notify MERSCORP Holdings, do so by using the Company Information Change Request form available on the corporate website. MERS® System Procedures Manual – Release 23.0 – 12/10/2012 System Security • 10 If the email address to which official notices for your organization should be sent changes, you must notify the Help Desk immediately. Business Procedure—When Using Third Party Service Providers Your organization may grant security access to the MERS System to third parties to process transactions on your behalf. Your System Administrator sets up this security through the Member Information Relationships section of MERS® OnLine by adding Vendor relationships. The transactions that may be processed by these vendors are: • Registrations • • • • Transfers Deactivations Updates Inquiries You may not set up a User ID under your Org ID for a third party. Business Procedure – Associated Member The MERS® System provides all Associated Members a central point to obtain information on a MIN (i.e. current Servicer, current Investor, Assignment information) with which they are associated. Any Member can be identified as an Associated Member on a MIN, provided it is an active MERS® System Member with a valid Org ID. The following Lines of Business (LOBs) define Associated Members on the MERS® System: Collateral Agent FHLB/FRB Government Housing Agency Master Servicer Mortgage Insurance Co. Trustee Warehouse/Gestation Lender MERS® System Procedures Manual – Release 23.0 – 12/10/2012 System Security • 11 To customize the pop-up lists. This enables you to see only the list of organizations with which you currently do business. Transfer of Servicing Rights and MIN Information windows through the use of My MERS®. see the MERS® System Reports Handbook: Change Notification Report (VB) MIN Milestone Report (VA) Registration Rejects/Warning Report (RG) Seasoned Registration Rejects/Warning Report (RB) Maintenance Rejects/Warning Report (MB) Business Procedure — My MERS® The MERS® System provides you the ability to customize the list of organizations that appear within the pop-up lists on the Registration. the Servicer or Subservicer may identify the following types of Associated Members: Collateral Agent FHLB/FRB Government Housing Agency Master Servicer Mortgage Insurance Company Trustee Warehouse/Gestation Lender Alternate Custodian 1-4 Participation Investor 1-4 Other 1-4 Property Preservation Company 1-4 Reports The following reports will list Associated Member interest on MINs from updates received from both batch processing (Flat File/X12) and MERS® OnLine. Property Preservation Company Other At the MIN level. Transfer of Beneficial Rights. you must define those relationships within your profile and turn on the My MERS® option. For detailed descriptions of these reports. MERS® System Procedures Manual – Release 23.0 – 12/10/2012 System Security • 12 . ) The MERS® System Lite Members will not show on pop-up Org ID lists on a registration or transfer transaction because it is unlikely another Member will name a Lite Member.Within the Relationships section of the Member Information.0 – 12/10/2012 System Security • 13 . and Create TOS/TOB pages in MERS® OnLine. • • • • • • • • • • • • • • Business Procedure — Transaction Default Settings You can also define default values for the rights holders and option selections that appear on the Registration. be named in these transactions. create or delete. Lite Members can. you can select which relationship to view. MERS® System Procedures Manual – Release 23. The system will not allow you to turn on the My MERS® functionality if your organization has a Vendor Line of Business. however. When you have defined your Member Information Relationships. Create TOS. use the Member Information My MERS® option to turn on this option. The different types will appear at the top of the Relationships page in alphabetical order and include: Collateral Agent Custodian FHLB/FRB Government Housing Interim Funder Investor Master Servicer Mortgage Insurance Company Other Property Preservation Company Servicer Subservicer Trustee Vendor (also included to incorporate Third Party security functionality) • Warehouse/Gestation Lender Active Members with a line of business equal to the selected Relationship Type will appear in the pop-up list. (Inactive Members will not appear in the pop up list. using the Member Information Transaction Default Settings option. rights holder Org IDs. Reports There are no reports associated with the My MERS® or Transaction Default Settings process.0 – 12/10/2012 System Security • 14 . TOS Settings allow you to enter the rights holder Org IDs you usually enter when creating a Transfer of Servicing Rights (TOS) or Transfer of Servicing and Beneficial Rights (TOS/TOB) transaction. you just enter it the same way you would if you hadn’t used TOS Settings. so you don’t need to enter it for each transfer. Once entered in Registration Settings. There is also a “Delete Current Custodian Option.Registration Settings allow you to enter the lien type. this information appears whenever you initiate a new registration. To enter different information for a particular transfer. MERS® System Procedures Manual – Release 23. this information appears whenever you initiate a new transfer transaction. To enter different information for a particular loan. MOM indicator. just enter it as you would if you hadn’t used Registration Settings. so you don’t need to enter it for each loan. Pre-Closing indicator. and Originating Organization information you usually enter during Registration.” Once entered in TOS Settings. Notification requirements for corporate name changes are described in the Member Corporate Name Changes chapter. Besides maintaining your Member Information on the MERS® System. you are responsible for notifying MERSCORP Holdings when there is a change to your corporate name. You can use the Company Information Change Request form available on the corporate website to notify MERSCORP Holdings of these changes. however. MERSCORP Holdings recommends that you designate one person as a contact for these changes. telephone or fax number. Your MERS® System Administrator also maintains information that controls system access and security. title. You are also responsible for notifying the Help Desk if your email address for document images and official notices needs to be changed. or Patron) • Other Org IDs affected by change • Name. generally your Operational Contact. and email address of contact submitting notification • Old address • New address • Which offices/contacts are affected • Effective Date Member Information • 15 MERS® System Procedures Manual – Release 23. billing information. Lite. Your notification of address changes should include: • Org ID • Organization Name • Member Type (General. You may change the information within your Member Information at any time. and contact information.Member Information Overview Your organization is required to maintain certain portions of your Member Information to define processing options. Some portions of the Member Information screens can only be changed by MERSCORP Holdings. document handling. address.0 – 12/10/2012 . You can update the following general information in your Member Information: • Official Corporate Address (Used in the Member Summary for your organization) You must also notify MERSCORP Holdings directly if this information changes Regular Address (Used by the MERSCORP Holdings Mail Center to distribute original mortgage documents received for your organization) Overnight Address. carrier and account information (Used by the MERSCORP Holdings Mail Center to distribute original mortgage documents received for your organization if you have chosen to have them delivered via overnight delivery) Investor Alternate Address and Telephone Servicer/Subservicer Alternate Address and Telephone Toll Free Phone number Corporate Fax number Corporate Web address Relationships • • • • • • • • MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Member Information • 16 .• • If email address is changing: o Old email address o New email address o Effective Date If telephone or fax number is changing: o Old number o New number o Effective Date Impact • The maintenance of the Member Information affects all MERS® System Members. Business Procedure—Member 1. o Secondary System Administrator Back-up for Primary System Administrator o Primary Customer Service* Contact who handles public requests for information about loans registered on the MERS® System o Secondary Customer Service Back-up for Primary Customer Service o Legal* Contact responsible for coordinating communication between the MERSCORP Holdings Law Department and the Member’s internal law You can designate multiple contacts for all contact types except Accounts Billing. maintaining your organization’s User IDs and Roles. Primary Customer Service and Primary System Administrator. email addresses and telephone numbers current. You must maintain the following contact information in your Member Information: • Title • • • • • • • • • • Name Phone number and extension Email address Pager number Fax number Address City State Zip code Contact Type o Accounts Billing* Contact designated to receive monthly invoices and respond to billing inquiries o Primary System Administrator* Person responsible for setting up unique User ID for each person at your company needing access to MERS® OnLine. addresses. MERS® System Procedures Manual – Release 23. and for notifying MERSCORP Holdings if your corporate name. or notification email address changes. 2.0 – 12/10/2012 Member Information • 17 .Your organization is responsible for keeping all contact names. and resetting passwords (MERSCORP Holdings Help Desk refers user security requests for your organization to this contact). address. it can be updated but not deleted) o Property Preservation Contact responsible for handling property preservation for your organization.0 – 12/10/2012 Member Information • 18 .department regarding litigation and other legal issues o Operational* Person(s) responsible for overseeing or conducting the day-to-day MERS® System functions and keeping your Member Information (including Contacts) current.org. MERS® OnLine.mersinc. Appears on Member Summary in MERS® OnLine and MERS® Link for the MERS® System Members and MERS® Link Subscribers to contact regarding property maintenance issues o Quality Assurance Officer* Contact responsible for the MERS® System Quality Assurance o Mail Room Contact responsible for handling mail received by MERSCORP Holdings Mail Center for your organization o Executive Sponsor* The senior executive within your organization under whose management the MERS® System operation falls o Compliance Officer Contact responsible for regulatory internal requirements for your organization o Technical Person responsible for providing technical support to ensure compatibility of your internal system(s) with the MERS® System (Required if using system-to-system interface) MERS® System Procedures Manual – Release 23. and MERS® Link (at least one is required – if only one contact of this type remains. Appears in the Member Summary available from Member Search at members. see Member Corporate Name Changes) Parent Org ID Lines of business FHA approval flag Investor Options Servicer Options Subservicer Options Agency IDs Document Handling Instructions Registration by Others flags (May be used to block other Members from registering a loan showing your organization as Investor. The password used to submitting XML Registration transactions.) Automated Password Reset flag (Allows users to establish challenge questions to be used to log into the system if they forget their password) eRegistry and eDelivery Options Member Information • 19 • • • If Overnight Mail is requested. • Member Name (MERSCORP Holdings requires official notification to update.o eRegistry Contact for MERS® eRegistry questions (required for MERS® eRegistry Members) *Required contact – may be updated. or Subservicer. but not deleted. You can view this information. Contact ppd@mersinc. Servicer.org if you need MERSCORP Holdings to update this information. XML Password.0 – 12/10/2012 . Business Procedure—MERSCORP Holdings MERSCORP Holdings maintains a portion of your organization’s profile as well. 3. The number of days before a user’s password expires. • • Number of Password Expiration Days. you must provide MERSCORP Holdings with your Corporate Airbill Number. You must maintain the following option information in your Member Information. • • • • • • • • MERS® System Procedures Manual – Release 23. but you cannot update it. While the Org ID is locked out: • • • Member is not able to log on to MERS® OnLine Member cannot perform any transactions on the MERS® System. Servicer or Subservicer. the Investor can request that MERSCORP Holdings take action to prevent activity on the disputed MINs by that Servicer/Subservicer.0 – 12/10/2012 Member Information • 20 .Member NOD Dispute In the event an Investor is involved in a dispute with a Warehouse Lender. 3. MERSCORP Holdings can process a lockout at any of several levels: • • Lockout all activity for an Org ID Lockout all activity for a specified LOB for an Org ID MERS® System Procedures Manual – Release 23.Reports No reports are associated with maintaining the Member Information.Member Lockout One of the sanctions available to MERSCORP Holdings for violations of the Rules of Membership or Procedures is Member Lockout. Business Procedure . The Investor will notify MERSCORP Holdings in writing of the dispute with the Servicer/Subservicer or Warehouse Lender. 1. 2. MERSCORP Holdings will process the request within five business days of receipt. and produce proof of ownership. including X12 or flat file transactions Access to the CRMS and authorization of the MERS Signing Officer(s) appointed with respect to the Member’s existing MERS Loans are not affected Other MERS® System Members may not perform a transaction on a MIN for which the locked out Member is named • Business Procedure . The Investor will notify MERSCORP Holdings when the dispute is settled and when the restriction to system or MIN access for that Servicer/Subservicer can be reactivated. For detailed descriptions of these reports.4. all Org IDs associated with impacted MINs can view MIN information. Reports Error messages appear on the following reports for processing that was stopped due to a Servicer being locked out. 5.0 – 12/10/2012 Member Information • 21 . Also. Regardless of the lockout level. a transfer transaction will be allowed if it transfers the MIN out of the relationship between the Member in troubled status and the disputing Member. see the MERS® System Reports Handbook: Seasoned Registration Rejects /Warnings (RB) Registration Rejects/Warnings (RG) Transfer of Beneficial Rights Rejects (BF) Physical Transfer of Servicing Rights (SC) Foreclosure Reject Report (DF) Payoff Reject Report (DP) Transfer to Non-MERS Status Reject Report (DQ) Default by Servicer to Non-Member Rejects Report (DR) Assumption Rejects/Warnings (AB) Maintenance Rejects/Warnings (MB) MERS® System Procedures Manual – Release 23. g. Impact • This process has potential impact on all MERS® System Members. merger) Member Corporate Name Changes • 22 MERS® System Procedures Manual – Release 23. MERSCORP Holdings will make the change on the MERS® System. Business Procedure 1. Please review the MERS® System Membership Application.0 – 12/10/2012 . Rules of Membership. acquisitions and other business events. The notification must include the following information: • • • • • Member Org ID Old corporate name New corporate name (Must be unique within the MERS® System) Effective date of the name change Reason for name change (e. You must notify MERSCORP Holdings in writing at least 30 days before a name change becomes effective.Member Corporate Name Changes Overview Because of mergers. The notification must be completed by an officer of your company and sent to MERSCORP Holdings no less than thirty (30) calendar days before the effective date. Use the Company Information Change Request form available on the corporate website. your corporate name as recorded in the MERS® System may need to be changed. and may be required to notify MERSCORP Holdings earlier if the change is due to a merger with or acquisition by a non-Member. MERSCORP Holdings requires official written notification for all corporate name changes. and Terms and Conditions for policies pertaining to these events. Reports No reports are associated with changing Member Information. The new corporate name appears anywhere your member name is linked to its Org ID. the Assignee and Assignor fields are free-form fields and are not linked to the Member’s Org ID. MERS® System Procedures Manual – Release 23. or Patron) Other Org IDs affected by change Name. MERSCORP Holdings updates your corporate name in the MERS® System on the effective date specified. and email address of company officer submitting notification 2. on all pop up lists in the MERS® System. title. therefore. you will need to request an updated MERS Corporate Resolution that reflects your new company name via the Corporate Resolution Management System (CRMS). and reports produced thereafter will show the new name. registered loans and batch transactions in the system. the name change will not appear in those fields. 4. 3. Lite. However.• • • Member Type (General. For example.0 – 12/10/2012 Member Corporate Name Changes • 23 . If MERS has previously issued your organization a MERS Corporate Resolution. the check digit is 8. *The exception to this is MINs generated through MERS® 1-2-3.0 – 12/10/2012 Mortgage Identification Number (MIN) • 24 . 18 digit string in the following format: • Component 1: Seven-digit organization identification number (Org ID) of the organization that generated the MIN*. listed in the Business Procedure of this section. as the sequence number. To process information on the MERS® System. you must enter the MIN. or you can use randomly generated sequence numbers. However. in the MIN 9594567-0123456789-8. You will be notified by MERSCORP Holdings of your Org ID. the Org ID never changes.Mortgage Identification Number (MIN) Overview A MIN in X12 file or flat file format does not include dashes between the components. Component 3: One numeric check digit calculated by you using the Mod 10 Weight 2 Algorithm. in the MIN 9594567-0123456789-8. For example. which begin with 1230000. • Component 2: 10-digit sequence number assigned by you. the Org ID is 9594567. For example. it can be reactivated if it was deactivated because servicing was sold to a MERS® System Procedures Manual – Release 23. as long as you never re-use the number. For example. regardless of servicing transfers. • A MIN is unique and must never be reused. in the MIN 9594567-0123456789-8. Like the rest of the MIN. A MIN consists of a three section. You can use existing numbers. the sequence number is 0123456789. The Mortgage Identification Number (MIN) is the unique 18-digit number permanently assigned to a mortgage registered on the MERS System. such as loan numbers. 0 – 12/10/2012 Mortgage Identification Number (MIN) • 25 . Determine the 10-digit sequence number. it is immediately added to the product. 3. ensuring the check digit is properly calculated. The new Servicer would then register the MIN to reactivate it. The units (i.non-Member Servicer then transferred back to a MERS® System Member.. Your company assigns the unique 10-digit sequence number. using the MOD 10 Weight 2 Algorithm. Any carry is added to the product of the next multiplication operation. The seven numeric digits of your Org ID will be assigned by MERSCORP Holdings. the rightmost) position and every alternate position of the base number (from right to left) are multiplied by two. Determine the check digit. The calculation follows: A. The MERS® System validates MINs at registration by checking for duplicate MINs. 2. Your company may have a utility that automatically calculates the check digit for you. B. and that the first seven digits of the MIN match an Org ID set up in Member Information in the MERS® System. Your company’s LOS or Servicing system may generate your MINs. If there is a carry on the last multiplication operation. Impact This process has potential impact to the following types of organizations: • • • • • • • Servicers Subservicers Originators Third-Party Originators Investors Document Custodians Associated Members Business Procedure for Creating a MIN 1. MERS® System Procedures Manual – Release 23. You can never re-use a sequence number.e. or you may use a third party application. The digits in the products and the digits in the base number not multiplied by two are added together. D. and that the first seven digits of the MIN match an Org ID set up in Member Information on the MERS® System. The MIN is highly For blanket assignments. 90 82 8 Minus Cross-Footed Total: Check Digit: 4. the number is subtracted from itself. Example: Org ID = 9594567 Sequence # = 0123456789 Base Number: 9 5 9 4 5 6 7 0 1 2 3 4 5 6 7 8 9 Alternate Positions Times 2: 9 x2 9 x2 5 x2 1 7 x2 4 1 x2 2 3 x2 7 5 x2 1 7 x2 5 9 x2 8 (1+8+1) 9 Digits Not Multiplied: 5 4 6 0 2 4 6 8 Cross-Footed: + 8= 82 10 +5 + 9 + 4 + 1+ 6 + 4 + 0 + 2 + 2 + 7 + 4 + 1 + 6 + 5 + 8 Next Higher Number Ending in Zero: See Quality Assurance Standards for the location of the MIN on documents.C. If there is a conflict with county requirements. the corresponding MIN must appear with each security instrument covered by the blanket assignment. If the total ends in zero. The difference is the check digit.0 – 12/10/2012 Mortgage Identification Number (MIN) • 26 . DOCUMENT Mortgage or Deed of Trust PROCESS Loan registered at origination REQUIREMENT The MIN and Servicer Identification System (SIS) number (888-679-MERS) are required on the security instrument for MOM loans. MERS® System Procedures Manual – Release 23. The MERS® System validates the MINs at registration by checking for duplicate MINs. and ensuring the check digit is properly calculated. The total is subtracted from the next higher number ending in zero. individual county recording requirements may vary. However. comply with the county requirements. Check with individual investors for specific delivery requirements.DOCUMENT PROCESS REQUIREMENT recommended on non-MOM security instruments. MERS language.0 – 12/10/2012 Mortgage Identification Number (MIN) • 27 . Lien Release/ Satisfaction Payment in full of mortgage Assumption Change in Borrower Modification Change in loan terms Subordination Agreement Subordination to additional loan iRegistration Documents All processes MERS® System Procedures Manual – Release 23. No MIN. The MIN and the SIS number are required on the Assignment To MERS. SIS number. The MIN and the SIS number are required on any subordination agreement recorded in the county land records for MOM and NonMOM loans. Assignment Loan registered at origination Loan registered more than 270 days after note date. The MIN and the SIS number are required on any modification recorded in the county land records for MOM and Non-MOM loans. The MIN and the SIS number are required on the lien release for MOM and NonMOM loans. Note Loan registered at origination It is highly recommended that you include the MIN on the Note. The MIN and the SIS number are required on any assumption recorded in the county land records for MOM and Non-MOM loans. or MERS address may appear on any document for an iRegistration loan. The MIN and the SIS number are required on the Assignment To MERS. the MIN information can only be updated by the current Servicer or Subservicer (unless there is a default by the Servicer or MERSCORP Holdings receives alternative instructions from the investor). to make any necessary changes to the registration information. For closed loans on which MERS is neither the original mortgagee nor the assignee. if the Investor requires it and if that ID is included on your Member Information. System to System Using a synchronous XML transaction Registration is the process for entering information to activate a loan on the MERS® System. • A loan that was assigned out of MERS and deactivated for reason of Assigned from MERS for Default or Bankruptcy. Once you register a loan. including the registration date. MOM and Non-MOM Loan Registration • 28 There are two formats for sending System-toSystem data: Flat File transmission EDI X12 transaction. see iRegistration. and is later assigned back to MERS.0 – 12/10/2012 . The system will auto populate the Agency ID field. Interim Funders can show their security interest in a loan on the MERS System by having the registering Member complete the Interim Funder field or associated Member field. MERS® System Procedures Manual – Release 23. including document custodian and associated Members.MOM and Non-MOM Loan Registration Overview There are three methods of submitting Registration transactions to MERS: Using our browser- based application. see Pre-Closing. Although it is not a requirement of the MERS® System. if applicable. You can identify other MERS® System Members with an interest on a particular loan. You can register: • A MOM loan you have just closed • A seasoned loan you’ve purchased • A loan originated on a standard security instrument and then assigned to MERS • A loan for which the prior registration was reversed • A loan that was assigned out of MERS and deactivated for reason of Transfer to non-MERS Status and then assigned back to MERS when purchased by a MERS® System Member. Thereafter. not assigned back to MERS. and is later assigned back to MERS. you have seven calendar days. For loans that have not yet closed. MERS OnLine. • A loan that was assigned out of MERS and deactivated for reason of Reinstated or Modified option 1. As the Registering Member you are required to enter the Investor and Servicer (and Subservicer if applicable) Org IDs at registration. or Original Note Holder if the originator does not have an Org ID. you must also enter Originating Org ID at Registration. In addition. you must enter Originating Org ID if the originator has an Org ID. For a MOM loan. You must register on the MERS® System all loans closed with “MERS as Original Mortgagee” (MOM) security instruments within seven calendar days of the Note Date. Example: “Mortgage Electronic Registration Systems. Note: For any document in which MERS is referred to as a nominee for a lender. even if you immediately or subsequently sell the loan to a non-Member.An Interim Funder can remove its security interest from the MERS System once they no longer have an interest in the loan or are made whole . You must register the loan being assigned to MERS on the MERS® System within seven calendar days of the effective transfer date. As always. then the language “its successors and assigns” must also be included. The effective transfer date is the earlier of the dates defined in the Purchase and Sale Agreement on which the buyer begins servicing the loans on its servicing system. the seller must initiate all Transfer of Servicing Rights transactions within five calendar days of the effective transfer date. its successors and assigns” Impact The loan registration process affects the following types of organizations: Primary Members: • Servicers • Subservicers • Originators • Third-Party Originators • Investors MERS® System Procedures Manual – Release 23. if a specific investor’s requirements are more stringent than the MERS® System requirements. or the assignment date.0 – 12/10/2012 MOM and Non-MOM Loan Registration • 29 . Inc. For a Non-MOM or iRegistration loan. as nominee for [Original Lender Named on Security Instrument].. The buyer of a non-registered MOM loan is allowed 14 calendar days from the Note/Funding Date in which to register the loan on the MERS® System. the investor’s requirements supersede the MERS® System policy. Option 2 Transfers of Beneficial Rights with interim funding interests will appear on an exception report. within 90 calendar days of the Registration Date. noting coexisting beneficial interests. 4. Enter the MIN on the MERS® System. etc. and send both to the recorder’s office. Custodians Interim Funders Associated Members: • Collateral Agent • FHLB/FRB • Government Housing Agencies • Master Servicer • Mortgage Insurers • Trustee • Warehouse/Gestation Lenders • Alternate Custodian (up to 4 entries) • Participation Investor (up to 4 entries) • Other (up to 4 entries) • Property Preservation Company (up to 4 entries) Business Procedure – Initial Registration 1.0 – 12/10/2012 MOM and Non-MOM Loan Registration • 30 . close the loan on a standard security instrument. Mortgage Insurance Companies. prepare an assignment to MERS. Or. are known as Associated Members and may be named during registration processing.• • Government Housing Agencies. 3. Enter the loan information: • • • • • • • Lien type – 1st or Subordinate Lien which accommodates all liens subsequent to the first Note Date Note Amount Funding Date (date interest starts to accrue. 2. Warehouse/Gestation Lenders. The MERS® System validates the MIN. if different from Note Date) Owner Occupied Flag FHA/VA Case Number or MI Certificate Number MOM indicator: o Defaults to MOM – MERS is the original mortgagee on the security instrument MERS® System Procedures Manual – Release 23. Trustees. Close the loan on a security instrument that names MERS as the original mortgagee and send it to the recorder’s office. • • • • • One Primary Borrower and up to three CoBorrowers may be entered on the Registration page. Trust. MERS® System Procedures Manual – Release 23. you can use 1011001 (Originating Org ID Exception) in the Originating Org ID field as a placeholder until the originator has completed the membership process and you can insert their Org ID in this field. 5. Additional Co-Borrowers must be entered as a MIN Information Borrower update.0 – 12/10/2012 . and you must insert the correct Org ID within 60 days. and for Non-MOM or iRegistration if originator is a MERS® System Member) Original Note Holder (required if originator is not a MERS® System Member) Servicer Subservicer Investor (use 1000002 if Investor is not a MERS® System Member) Document Custodian Interim Funder (only if a MERS® System Member) Associated Member(s) • • Enter all names that appear on the origination or servicing system. However. see the iRegistration chapter Pre-Closing Indicator: o Defaults to No o For loans that have not yet closed. • • o Set to Non-MOM only if the loan was originated on a standard security instrument and assigned to MERS o For loans neither originated with MERS as mortgagee nor assigned to MERS. this will be an exception for your reconciliation and data reviews. enter 111111111 for the SSN.If you purchase a MOM loan that was closed by an originator who had not yet completed the membership process. or other non-individual) OR o First Name o Middle Name or initial o Last Name o Name Suffix • Social security number or tax ID (required for primary borrower) Must be a valid social security number (only exceptions are 111111111 for a foreign national with no SSN or 444444444 in FCRA situations) MOM and Non-MOM Loan Registration • 31 For foreign nationals with no SSN or Tax ID. see the PreClosing Registration chapter. Enter borrower information exactly as it appears on the origination or servicing system: • Borrower Name: o Corporate Name (Business. Originating Org ID (required for MOM loans. Enter the following required legal description information exactly as it appears on the origination or servicing system: • Property County or FIPS Code (County where property is located) 8. 12.) • Street direction (e. ST. etc. The MERS® System validates the registration and loan status reflects an “Active (Registered)” status. Enter property information exactly as it appears on the origination or servicing system: • Street number • Street name • Street designator (e. if required by the Investor • Investor pool number for agency investors • Securitization Trust name for private pools 9. Inc. BLVD. SE. Apt. Submit the transaction. Assignee information defaults to Mortgage Electronic Registration Systems.g.) • Unit number • City • State • ZIP code and extension 7. 11. N. and the loan information entered on the MERS® System does not match the loan information MERS® System Procedures Manual – Release 23. the property street number is not required.For properties without street numbers. etc.) • Unit type (e. 13. Co-op. 6.0 – 12/10/2012 MOM and Non-MOM Loan Registration • 32 .g. if required by the Investor • Agency ID. If providing Assignor information. as in Rural Route addresses. Additional Assignment information is optional. Assignor Name is required. S. If the MIN matches the MIN of an eNote record registered on the MERS® eRegistry. etc. Enter the following Modification Agreement information (required for construction-to-permanent and some CEMA loans): • Modification Agreement Note Date • Modification Agreement Note Amount 10. Enter the following miscellaneous information. if applicable: • Investor loan number.g. Condo. the MIN Milestones report is generated. the Registration Verification report. MERS® System Procedures Manual – Release 23. 19. and enter a Note Date if one was not entered for the Pre-Closing. Business Procedure – Post-Closing Registration Note: If the Pre-Closing was performed via batch or XML and contains more than four borrowers. For primary rights holders on the loan (for example. For Associated Members on the loan.0 – 12/10/2012 MOM and Non-MOM Loan Registration • 33 . The registration appears on the MIN-level milestones.on the MERS® eRegistry. Investor. and displays the Registration page populated with the information from the Pre-Closing registration. 15. 60 calendar days after registration. If you have not entered an originating organization. 3. or have Originating Org ID Exception (1011001) in the Originating Org ID field as a placeholder. If you have made any errors in the registration information. you are charged the registration fee. Check all loan information and update as needed. only the current Servicer or Subservicer can update the information. only the first four will remain if you register the MOM or Non-MOM loan in ® MERS OnLine. you can correct them for the first seven calendar days (including registration date) as the registering Member. a Mismatched MIN/eNote Record (EJ) report will be generated for each rights holder. see Post-Closing iRegistration. MERS® OnLine validates the MIN. 1. Be sure to update the Pre-Closing indicator to No. The fee appears on your next monthly invoice from MERSCORP Holdings. Servicer. Enter the MIN on the MERS® System as a Registration 2. the loan will appear on the MINs Without Originating Organization (QE) exception report. 18. Interim Funder and Custodian). and/or the Seasoned Registration Verification report is generated. To register it as an active iRegistration loan. If a loan is registered as a Pre-Closing on the MERS® System. 17. 16. As the registering Member. 14. you can register it as an active MOM or Non-MOM loan once it closes. Thereafter. 1. If the MIN matches the MIN of an eNote record registered on the MERS® eRegistry. Servicer. A Post-Closing registration fee is charged when you register a Pre-Closing loan as a Post-Closing MOM or Non-MOM loan. Submit transaction. and the loan information entered on the MERS® System does not match the loan information on the MERS® eRegistry. the MIN Milestones report is generated. you can correct the information for that loan and re-register it. Business Procedure – Re-registration after Reversal If a loan is in registration reversal status on the MERS® System. Investor. The Post-Closing registration appears on the MIN-level milestones. only the current Servicer or Subservicer can update the information. 6. 11. If you have made any errors in the registration information. 10. 5.0 – 12/10/2012 MOM and Non-MOM Loan Registration • 34 . Enter the appropriate Owner Occupied value. For Associated Members on the loan. a Mismatched MIN/eNote Record (EJ) report will be generated for each rights holder. you can correct them for the first seven calendar days (including registration date) as the registering Member. 9. Enter the MIN on the MERS® System as a Registration 2. and displays a summary of the loan information.4. MERS® System Procedures Manual – Release 23. MERS® OnLine validates the MIN. along with the Re-Registration menu 3. and the Registration Date in MIN Information reflects the most recent registration. 8. 7. Interim Funder and Custodian) and the Pre-Closing Registering Member. The MERS® System validates the registration and loan status reflects an “Active (Registered)” status. Thereafter. The Registration Verification report and/or Seasoned Registration Verification report is generated for primary rights holders on the loan (for example. Thereafter. If the MIN matches the MIN of an eNote record registered on the MERS® eRegistry. and send it to the recorder’s office. For Associated Members on the loan. 6. 10. Business Procedure – Re-registration after Deactivation If a loan has been deactivated on the MERS® System for any reason other than Foreclosure Complete or Paid in Full. Select Re-Register from the Re-Registration Loan page. only the current Servicer or Subservicer can update the information. For primary rights holders on the loan (for example. Interim Funder and Custodian). If you have made any errors in the registration information. 9. The registration appears on the MIN-level milestones. 8. For loans assigned to the Member rather than to MERS. the Registration Verification report. see iRegistration after Deactivation. 7. Servicer. and/or the Seasoned Registration Verification report is generated. you are charged the registration fee.0 – 12/10/2012 MOM and Non-MOM Loan Registration • 35 . 1. a Mismatched MIN/eNote Record (EJ) report will be generated for each rights holder. The fee appears on your next monthly invoice from MERSCORP Holdings. 12. Investor. As the registering Member. and the loan information entered on the MERS® System does not match the loan information on the MERS® eRegistry. that loan can be re-registered using the existing MIN if it is later assigned to MERS.4. Prepare an Assignment To MERS. MERS® System Procedures Manual – Release 23. the MIN Milestones report is generated. 11. using the options available on the Re-Registration menu 5. Check all loan information and update as needed. you can correct them for the first seven calendar days (including registration date) as the registering Member. The MERS® System validates the registration and loan status reflects an “Active (Registered)” status. the Registration Verification report. The registration appears on the MIN-level milestones. which occurred between the loan being deactivated and re-registered. 2. Check the remaining loan information to ensure it is correct. Enter the assignment information for the Assignment To MERS. a Mismatched MIN/eNote Record (EJ) report will be generated for each rights holder. you can correct them for the first seven calendar days (including registration date) as the registering Member. For primary rights holders on the loan (for example. If you have made any errors in the registration information. Submit the transaction. 5. 17. 4. MERS® System Procedures Manual – Release 23.Even if the loan was originally recorded with MERS as mortgagee. Enter the appropriate Owner Occupied value. 3. 13. The MERS® System validates the registration and loan status reflects an “Active (Registered)” status.0 – 12/10/2012 MOM and Non-MOM Loan Registration • 36 . 14. 8. For MOM Indicator. on the assignment. see iRegistration after Deactivation). Servicer. The fee appears on your next monthly invoice from MERSCORP Holdings. 9. since it must be assigned back into MERS it is no longer considered a MOM loan. Investor. you are charged the registration fee. 10. and/or the Seasoned Registration Verification report is generated. and the SIS telephone number. 11. etc. 16. the MIN Milestones report is generated. and the loan information entered on the MERS® System does not match the loan information on the MERS® eRegistry. If the MIN matches the MIN of an eNote record registered on the MERS® eRegistry. Interim Funder and Custodian). For Associated Members on the loan. 15. Enter the MIN on the MERS® System as a Registration. 6. As the registering Member. Enter the new Servicer Org ID. The MERS® System validates the MIN and displays the loan information. Enter any assignments. • Include the existing MIN. assumptions. select Non-MOM (if loan is not assigned to MERS. 7. 12. only the current Servicer or Subservicer can update the information. Property. Reports The following reports are generated during the Loan Registration and Seasoned Loan Registration process. and First Lien.Thereafter.Daily Report MINs for the Same Primary Borrower SSN.0 – 12/10/2012 MOM and Non-MOM Loan Registration • 37 . For a detailed description of each report. see the MERS® System Reports Handbook: Registration Verification Report Registration Rejects/Warnings Report MINs for the Same Primary Borrower SSN.Monthly Report Mismatched MIN/eNote Record Report Seasoned Registration Verification Report Seasoned Registration Rejects/ Warnings Report MIN Milestone Report for Associated Members MINs Without Originating Organization Report MERS® System Procedures Manual – Release 23. Property. and First Lien. if applicable. including the registration date. to make any necessary changes to the registration information. You can identify other MERS® System Members with an interest on a particular loan.0 – 12/10/2012 iRegistration • 38 . iRegistration can be used for: • A loan you have just closed • A seasoned loan you have purchased • A loan for which the prior registration was reversed • A loan that was deactivated for reason of Transfer to nonMERS Status and then purchased by a MERS® System Member but not assigned to MERS • A loan that was assigned from MERS to a non-MERS Member • A loan previously registered as a Pre-Closing that has closed (for loans that have not yet closed. MERS OnLine. System to System Using a synchronous XML transaction iRegistration is the process for entering information to activate on the MERS® System a loan for which MERS is not the mortgagee. Thereafter.iRegistration Overview There are three methods of submitting an iRegistration transaction to MERS: Using our browser- based application. Once you register a loan. see Pre-Closing) As the Registering Member you are required to enter the Investor and Servicer (and Subservicer if applicable) Org IDs at registration. The system will auto populate the Agency ID field. you have seven calendar days. if the Investor requires it and if that ID is included on your Member Information. including document custodian and associated Members. Although it is not a requirement of the MERS® System. There are two formats for sending System-toSystem data: Flat File transmission EDI X12 transaction. MERS® System Procedures Manual – Release 23. the MIN information can only be updated by the current Servicer or Subservicer (unless there is a default by the Servicer or alternative instructions from the investor). Interim Funders can show their security interest in a loan on the MERS System by having the registering Member complete the Interim Funder field or associated Member field. Do not include a MIN. Mortgage Insurance Cos. SIS telephone number. Enter the MIN on the MERS® System using a Registration transaction. or any other reference to MERS on the security instrument or any subsequent documents for this loan. Warehouse/Gestation Lenders.0 – 12/10/2012 iRegistration • 39 . Trustees. MERS address. Close the loan on a standard security instrument. etc.Impact Government Housing Agencies. MERS® System Procedures Manual – Release 23. The iRegistration process affects the following types of organizations: Primary Members: • • • • • • • • • • • • • • • • • • Servicers Subservicers Originators Third-Party Originators Investors Custodians Interim Funders Associated Members: Collateral Agent FHLB/FRB Government Housing Agencies Master Servicer Mortgage Insurers Trustee Warehouse/Gestation Lenders Alternate Custodian (up to 4 entries) Participation Investor (up to 4 entries) Other (up to 4 entries) Property Preservation Company (up to 4 entries) Business Procedure – iRegistration 1. 2. are known as Associated Members and may be named during registration processing. An Interim Funder can remove its security interest from the MERS System at any time. Trust. Social security number or tax ID (required for primary borrower) Must be a valid social security number (only exception is 111111111 for a foreign national with no SSN)Enter MERS® System Procedures Manual – Release 23. Option 2 Transfers of Beneficial Rights with interim funding interests will appear on an exception report. Enter borrower information exactly as it appears on the origination or servicing system: • Borrower Name: o Corporate Name (Business. or other non-individual) OR o o o o First Name Middle Name or initial Last Name Name Suffix One Primary Borrower and up to three Co-Borrowers may be entered on the Registration page. 4.0 – 12/10/2012 iRegistration • 40 . 6. Enter the loan information: • Lien type – 1st or Subordinate Lien (which accommodates all liens subsequent to the first) • Note date • Note amount • Funding date (optional) • Owner Occupied flag • FHA/VA Case Number or MI Certificate Number • MOM indicator: Select “iRegistration” • Pre-Closing Indicator: Select “No” • Originating Org ID (if originator is a MERS® System Member) • Original Note Holder (if originator is not a MERS® System Member) • Servicer • Subservicer • Investor (use 1000002 if Investor is not a MERS® System Member) • Document Custodian • Interim Funder (only if a MERS® System Member) • Associated Member(s) 5. Additional Co-Borrowers must be entered as a MIN Information Borrower update. For foreign nationals with no SSN or Tax ID.3. The MERS® System validates the MIN. enter 111111111 for SSN. noting coexisting beneficial interests. Enter miscellaneous information if applicable: • Investor loan number. as in Rural Route addresses. property information exactly as it appears on the origination or servicing system: • Street number • Street name • Street designator (e. SE. etc. Apt. BLVD.g. 12. Submit the transaction. the Assignee-related fields default to Mortgage Electronic Registration Systems.For properties without street numbers. and loan status reflects an “Active (Registered)” status.g. S. etc. If the MIN matches the MIN of an eNote record registered on the MERS® eRegistry. The MERS® System validates the registration.0 – 12/10/2012 iRegistration • 41 . the property street number is not required.) • Unit type (e. You do not need to manually remove this information because the data is not saved when you submit the loan. ST. if required by the Investor • Agency ID. Note: When you register an iRegistration loan. Modification Agreement information is optional: • Modification Agreement Note Date • Modification Agreement Note Amount 10. 8. Coop. and the loan information entered on the MERS® System does not match the loan information MERS® System Procedures Manual – Release 23. 11.g. etc. but MERS may not be included as either Assignor or Assignee. 13. if required by the Investor • Investor pool number for agency investors • Securitization Trust name for private pools 9.) • Unit number • City • State • ZIP code 7. Assignment information is optional.) • Street direction (e. Enter the following legal description information exactly as it appears on the origination or servicing system: • Property County or FIPS Code (County where property is located) Agency ID is required when registering loans sold to Fannie Mae or Freddie Mac. N. Inc. Pool Number is required when registering loans issued in a Ginnie Mae or Fannie Mae pool. For primary rights holders on the loan (for example. If you have made any errors in the registration information.on the MERS® eRegistry. the MIN Milestones report is generated. 17. and displays the Registration page populated with the information from the Pre-Closing registration. The registration appears on the MIN-level milestones. you can correct them for the first seven calendar days (including registration date) as the registering Member. unless the loan you are registering was already registered as a Pre-Closing. Close the loan on a standard security instrument. For Associated Members on the loan. 18. To register it as an active MOM or Non-MOM loan. Enter the MIN on the MERS® System using a Registration transaction. SIS telephone number. Business Procedure – Post-Closing iRegistration Note: If the Pre-Closing was performed via batch or XML and contains more than four borrowers. 1. Servicer. see Post-Closing Registration. MERS® System Procedures Manual – Release 23. Interim Funder and Custodian). Investor. As the registering Member.0 – 12/10/2012 iRegistration • 42 . The fee appears on your next monthly invoice from MERSCORP Holdings. you can register it as an active iRegistration once it closes. a Mismatched MIN/eNote Record (EJ) report will be generated for each rights holder. only the current Servicer or Subservicer can update the information. 15. only the first four will remain if you register the ® iRegistration in MERS OnLine If a loan is registered as a Pre-Closing on the MERS® System. or any other reference to MERS on the security instrument. and/or the Seasoned Registration Verification report is generated. Thereafter. you are charged the registration fee. 3. MERS® OnLine validates the MIN. Do not include a MIN. 2. 14. the Registration Verification report. MERS address. 16. Interim Funder and Custodian) and the Pre-Closing Registering Member. Investor. a Mismatched MIN/eNote Record (EJ) report will be generated for each rights holder. 11. If you have made any errors in the registration information. The Registration Verification report and/or Seasoned Registration Verification report is generated or primary rights holders on the loan (for example. only the current Servicer or Subservicer can update the information. Thereafter. and enter a Note Date if one was not entered for the Pre-Closing. 10. 8. 6. Check all loan information and update as needed. 9.4. 5. The MERS® System validates the registration and loan status reflects an “Active (Registered)” status. No registration fee is charged when you register a PreClosing loan as an iRegistration. MERS® System Procedures Manual – Release 23. 12. Be sure to update the Pre-Closing indicator to No. Submit transaction.0 – 12/10/2012 iRegistration • 43 . and the Registration Date in MIN Information reflects the most recent registration. Business Procedure – iRegistration after Reversal If a loan is in registration reversal status on the MERS® System. The registration appears on the MIN-level milestones. 7. and the loan information entered on the MERS® System does not match the loan information on the MERS® eRegistry. the MIN Milestones report is generated. you can correct the information for that loan and re-register it as an iRegistration. you can correct them for the first seven calendar days (including registration date) as the registering Member. If the MIN matches the MIN of an eNote record registered on the MERS® eRegistry. Servicer. For Associated Members on the loan. 3. SIS telephone number. As the registering Member. the Registration Verification report. 4. the MIN Milestones report is generated. MERS® OnLine validates the MIN. Close the loan on a standard security instrument. 13. If the MIN matches the MIN of an eNote record registered on the MERS® eRegistry. and displays a summary of the loan information. Check all loan information and update as needed. If you have made any errors in the registration information. Interim Funder and Custodian). MERS® System Procedures Manual – Release 23. Enter the MIN on the MERS® System using a Registration transaction. and/or the Seasoned Registration Verification report is generated. you can correct them for the first seven calendar days (including registration date) as the registering Member. Thereafter. 9.1. and the MOM indicator is set to iRegistration. along with the Re-Registration menu. 2. you are charged the registration fee. 5. only the current Servicer or Subservicer can update the information. and the loan information entered on the MERS® System does not match the loan information on the MERS® eRegistry. The registration appears on the MIN-level milestones. Select Re-Register from the Re-Registration Loan page. or any other reference to MERS on the security instrument. MERS address. 12. 10. The fee appears on your next monthly invoice from MERSCORP Holdings. Do not include a MIN. The MERS® System validates the registration and loan status reflects an “Active (Registered)” status. using the options available on the Re-Registration menu. Servicer. a Mismatched MIN/eNote Record (EJ) report will be generated for each rights holder. 6.0 – 12/10/2012 iRegistration • 44 . Investor. For Associated Members on the loan. Be sure the Pre-Closing indicator is set to No. 8. 7. For primary rights holders on the loan (for example. 11. Enter the appropriate Owner Occupied value. If the loan was assigned to MERS. 12. 1. If the loan was assigned directly to the Member. that loan can be re-registered using the existing MIN if it is later assigned to a MERS® System Member. the MIN Milestones report is generated. The registration appears on the MIN-level milestones. a Mismatched MIN/eNote Record (EJ) report will be generated for each rights holder. Enter the new Servicer Org ID 5. 11. Investor.Business Procedure – iRegistration after Deactivation If a loan has been deactivated on the MERS® System for any reason other than Foreclosure Complete or Paid in Full. 8. Servicer. The MERS® System validates the MIN and displays the loan information 4. Submit the transaction. Enter the appropriate Owner Occupied value. Interim Funder and Custodian). Check the remaining loan information to ensure it is correct. and the loan information entered on the MERS® System does not match the loan information on the MERS® eRegistry. and/or the Seasoned Registration Verification report is generated. 6. MERS® System Procedures Manual – Release 23. 9. see Re-Registration after Deactivation. the Registration Verification report. or any other reference to MERS on the assignment 2. If the MIN matches the MIN of an eNote record registered on the MERS® eRegistry. For primary rights holders on the loan (for example. For Associated Members on the loan.0 – 12/10/2012 iRegistration • 45 . see Re-Registration after Deactivation. The MERS® System validates the registration and loan status reflects an “Active (Registered)” status. 7. MERS address. For loans assigned to MERS rather than to the Member. 10. SIS telephone number. the MOM indicator should be iRegistration. Do not include a MIN. Enter the MIN on the MERS® System using a Registration transaction 3. you can correct them for the first seven calendar days (including registration date) as the registering Member.13. Property. As the registering Member. and First Lien. The fee appears on your next monthly invoice from MERSCORP Holdings. and First Lien.0 – 12/10/2012 iRegistration • 46 . only the current Servicer or Subservicer can update the information. 14. see the MERS® System Reports Handbook: Registration Verification Report Registration Rejects/Warnings Report MINs for the Same Primary Borrower SSN. If you have made any errors in the registration information. For a detailed description of each report. Thereafter. Property. Reports The following reports are generated during the iRegistration process.Monthly Report Mismatched MIN/eNote Record Report Seasoned Registration Verification Report Seasoned Registration Rejects/ Warnings Report MIN Milestone Report for Associated Members MERS® System Procedures Manual – Release 23. you are charged the iRegistration fee.Daily Report MINs for the Same Primary Borrower SSN. Conversion from iRegistration to Non-MOM Overview If a loan registered on the MERS® System as an active iRegistration is later assigned to MERS. An Interim Funder can be added. but not updated or deleted. Assignment information may be added. this change must be reflected on the MERS® System by converting the loan from an iRegistration to a Non-MOM. and system edits follow registration rules. Servicer and Investor cannot be changed in a conversion transaction. Other data on the record may be updated. You must perform the conversion transaction on the MERS® System for the loan being assigned to MERS within seven calendar days of the assignment date. Impact The conversion process has potential impact to the following types of organizations: • • • • • Servicers Subservicers Investors Document Custodians Associated Members MERS® System Procedures Manual – Release 23. but not changed or deleted. Conversions may only be performed from iRegistration to Non-MOM. The Servicer or Subservicer performs the conversion using a batch or online Registration transaction.0 – 12/10/2012 Conversion from iRegistration to Non-MOM • 47 . 8. the existing loan data is displayed on the Registration page. it is eligible for conversion. The Servicer or Subservicer submits the MIN to the MERS® System in a Registration transaction. In batch. The conversion appears on the MIN-level milestones. For primary rights holders on the loan (for example. a Mismatched MIN/eNote Record (EJ) report will be generated for each rights holder. the Conversion Verification report is generated.Business Procedure 1. Submit the transaction. all registration data must be submitted. If the MIN matches the MIN of an eNote record registered on the MERS® eRegistry. If it is an active iRegistration that is not in a foreclosure status. 12. Servicer. For Associated Members on the loan. Investor and Servicer must match those already on the MIN. you are charged the conversion fee. 4. As the converting Member. but not removed or changed. 6. and send it to the recorder’s office. If performed in MERS® OnLine. 11. 10. 5. and a MOM Indicator of N must be submitted. including the MIN. The fee appears on your next monthly invoice from MERSCORP Holdings. 2. The MERS® System validates the registration and loan status reflects an “Active (Registered)” status. 13. Prepare an Assignment To MERS. 9. the MIN Milestones report is generated. and the submitting Member is its Servicer or Subservicer. MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Conversion from iRegistration to Non-MOM • 48 . 3. Interim Funder and Custodian). The MERS® System validates the MIN. Interim Funder may be added if one exists. SIS telephone number. and MERS address. with the MOM indicator set to “Non-MOM” and the Investor and Servicer fields grayed out. 7. Investor. For a detailed description of each report.0 – 12/10/2012 Conversion from iRegistration to Non-MOM • 49 . see the MERS® System Reports Handbook: Conversion Verification Report Conversion Rejects/Warnings Report MINs for the Same Primary Borrower SSN. and First Lien Mismatched MIN/eNote Record Report MIN Milestone Report for Associated Members MERS® System Procedures Manual – Release 23. Property.Reports The following reports are generated during the Conversion process. it cannot be updated. or deactivated. MERS OnLine.0 – 12/10/2012 Pre-Closing Registration • 50 . MOM or Non-MOM. so cannot be updated. and loan information may be updated at post-closing. A Pre-Closing can be registered as an active iRegistration. but if entered.Pre-Closing Registration Overview There are three methods of submitting a Pre-Closing transaction to MERS: Using our browserbased application. Note Date is optional. The organization registering the Pre-Closing loan receives the registration verification report if the same MIN is later registered as an active loan by another Member. Loans in a Pre-Closing status do not contain Assignment information. the Note Date may not be in the past. you are required to enter the Investor and Servicer Org IDs. it may be the current date or up to a year in the future. Any Assignment data submitted in a Pre-Closing registration transaction is ignored. MOM or Non-MOM loan once the loan closes in a transaction known as post-closing registration. transferred. System to System Using a synchronous XML transaction A Pre-Closing is a loan registered on the MERS® System before it has closed. It is not active. There are two formats for sending System-to-System data: Flat File transmission EDI X12 transaction. A Pre-Closing may be registered with a MOM indicator of iRegistration. but the Pre-Closing registration can be reversed if it was done in error. When registering a Pre-Closing. Impact The Pre-Closing process affects the following types of organizations: Primary Members: • Servicers • Subservicers • Originators • Third-Party Originators • Investors • Custodians • Interim Funders MERS® System Procedures Manual – Release 23. Once the Pre-Closing is registered. The MERS® System validates the MIN. Submit the MIN to the MERS® System in a Registration transaction. 3. Non-MOM or iRegistration Pre-Closing indicator: Choose “Yes” Originating Org ID (if originator is a MERS® System Member) Original note holder name (if originator is not a MERS® System Member) Servicer Subservicer Investor Pre-Closing Registration • 51 MERS® System Procedures Manual – Release 23. Warehouse/Gestation Lenders. 2.0 – 12/10/2012 . etc.Government Housing Agencies. Enter the loan information: • • • • • • • • • • • • Lien type – 1st or Subordinate Lien (which accommodates all liens subsequent to the first) Expected Note date (optional. Mortgage Insurance Companies. up to 365 days in future) Note amount Owner Occupied Flag FHA/VA Case Number or MI Certificate Number MOM indicator: Choose MOM. are known as Associated Members and may be named during registration. Trustees. Associated Members: • Collateral Agent • FHLB/FRB • Government Housing Agencies • Master Servicer • Mortgage Insurers • Trustee • Warehouse/Gestation Lenders • Alternate Custodian (up to 4 entries) • Participation Investor (up to 4 entries) • Other (up to 4 entries) • Property Preservation Company (up to 4 entries) Business Procedure – Pre-Closing 1. etc. etc. SE. Coop. as in Rural Route addresses. • • • • • • • • • Street number Street name Street designator (e. BLVD. the property street number is not required. Apt.g.0 – 12/10/2012 Pre-Closing Registration • 52 . Trust. 5. N. Enter borrower information as it appears on the origination system: • Borrower Name: o Corporate Name (Business.) Unit number City State ZIP code and extension 6.) Street direction (e. enter 111111111 for SSN.• • • Interim Funder (only if a MERS® System Member) Document Custodian Associated Member(s) 4.g. ST. o First name o Middle name o Last name o Name Suffix • Social security number or tax ID (required for primary borrower) Must be a valid social security number (only exception is 111111111 for a foreign national with no SSN) For foreign nationals with no SSN or Tax ID. Enter the following legal description information exactly as it appears on the origination or servicing system: • Property County or FIPS Code (County where property is located) MERS® System Procedures Manual – Release 23. Enter property information as it appears on the origination system: For properties without street numbers.) Unit type (e. S.g. etc. or other non-individual) OR One Primary Borrower and up to three Co-Borrowers may be entered on the Registration page. 9. For Associated Members on the loan. 15. MERS® System Procedures Manual – Release 23. Enter the following miscellaneous information. you can correct the information for that loan and re-register it as a Pre-Closing. you can register it as an iRegistration without paying an additional fee. No Assignment information may be entered for a PreClosing. The MERS® System validates the registration and loan status reflects a “Pre-Closing” status.0 – 12/10/2012 Pre-Closing Registration • 53 . 13. Business Procedure – Pre-Closing after Reversal If a loan is in registration reversal status on the MERS® System. 10. 16. you must reverse the registration of the MIN and then re-register it with the correct information. Enter the MIN on the MERS® System as a Registration. Servicer. The fee appears on your next monthly invoice from MERSCORP Holdings. the MIN Milestones report is generated. You cannot update any information on a loan in PreClosing status. As the registering Member. if required by the Investor • Agency ID. Once the loan closes. The Pre-Closing registration appears on the MIN-level milestones. the PreClosing Verification report is generated. 11. 14. 12. To correct an error. Investor. or as a MOM or NonMOM for an additional fee. Interim Funder and Custodian).7. Submit the transaction. For primary rights holders on the loan (for example. if applicable: • Investor loan number. you are charged the PreClosing registration fee. and loan information may be updated as part of this post-closing registration transaction. 1. if required by the Investor 8. 10. For primary rights holders on the loan (for example. 9.0 – 12/10/2012 Pre-Closing Registration • 54 . the MIN Milestones report is generated. Investor. the PreClosing Verification report is generated. 7. As the registering Member. 6. 5. using the options available on the Re-Registration menu. 3. you can register it as an iRegistration without paying an additional fee or as a MOM or NonMOM for an additional fee. No assignment information may be entered for a PreClosing.2. You cannot update any information once the registration transaction is complete. MERS® System Procedures Manual – Release 23. Once the loan closes. Interim Funder and Custodian). you must reverse the registration of the MIN and then re-register it with the correct information. To correct an error. Be sure the Pre-Closing indicator is set to Yes. The MERS® System validates the registration and loan status reflects a “Pre-Closing” status. you are charged the PreClosing registration fee. The Pre-Closing registration appears on the MIN-level milestones. • • • • 4. 8. Check all loan information and update as needed. The fee appears on your next monthly invoice from MERSCORP Holdings. For Associated Members on the loan. In batch. Servicer. Select Re-Register from the Re-Registration Loan page. enter all registration information as you would for a Pre-Closing that has never been registered. In MERS® OnLine: • A summary of the loan information from the previous registration is displayed along with the Re-Registration menu. Reports The following reports are generated during the Pre-Closing Registration process. see the MERS® System Reports Handbook: Pre-Closing Registration Verification Report Pre-Closing Registration Rejects/Warnings Report MIN Milestone Report for Associated Members MERS® System Procedures Manual – Release 23. For a detailed description of each report.0 – 12/10/2012 Pre-Closing Registration • 55 . X12 or flat file transactions Impact The loan registration reversal process affects the following types of organizations: • Only the Servicer. Registration Reversal may be processed through MERS OnLine. Similarly. Thereafter only the Servicer or Subservicer can reverse the registration. Servicers Subservicers Originators Third-Party Originators Investors Custodians Interim Funders Associated Members • • • • • • • MERS® System Procedures Manual – Release 23. If a loan is registered as an iRegistration and recorded in the land records as a MOM. Subservicer or Member that originally registered the MIN can perform this process. if the beneficial rights for a MIN have been transferred. the registration will need to be reversed in order to register the loan as an iRegistration. you can use the Conversion transaction to convert the iRegistration to a Non-MOM. the iRegistration registration will need to be reversed in order to register the loan as a MOM. The registering Member may reverse a registration for 30 calendar days starting on the Registration Date. You can also use Registration Reversal if you register a loan with the incorrect Servicer or Investor. If a loan is registered as an iRegistration and MERS becomes the mortgagee through an assignment. Also.0 – 12/10/2012 Registration Reversal • 56 . if a loan is registered as a MOM or Non-MOM but MERS is never the mortgagee.Registration Reversal Overview A Registration Reversal is for reversing a loan that has been registered in error. the registration can only be reversed if the current Investor transfers the MIN back to the registering Member. you would then immediately reregister it using the correct information. Servicer. 6. the Registration Reversal Verification report. 7. Investor. and/or the Registration Reversal Rejects/Warnings report. The registration reversal appears on the MIN-level milestones. is generated. For Members with an interest in the loan (for example. Select Registration from the Reversals menu. For a detailed description of each report. All registration information is retained for use if the MIN is re-registered. 2. Note: No fee is assessed to the Member performing the registration reversal. 9. but the applicable registration fee will still be assessed for the initial registration. the normal registration fee will apply. For Associated Members on the loan. The MERS System validates the registration reversal and changes the loan status to “Registration Reversal”.Business Procedure 1. the MIN Milestones report is generated. 8. If the MIN is re-registered. 5. 3.0 – 12/10/2012 Registration Reversal • 57 . Reports The following reports are generated as a result of the Registration Reversal process. Interim Funder and Custodian). see the MERS® System Reports Handbook: * * * Registration Reversal Verification Report Registration Reversal Rejects/Warnings Report MIN Milestone Report for Associated Members MERS® System Procedures Manual – Release 23. 4. Enter the MIN. MERS System validates the MIN. When identifying the Note Amount. Business Procedure 1.0 – 12/10/2012 Reverse Mortgage Processing • 58 .Reverse Mortgage Processing Overview No separate functionality is required for reverse mortgage processing. Track life of loan events as for other mortgage loans. maintains. Register the MIN associated with the reverse mortgage in the same method as any registration. which can be accomplished through batch processing or through MERS OnLine. This field may also be mapped through batch file processing. use the Maximum Principal Amount from the Note. Registrations and other transactions for reverse mortgages are performed as for other loans. or deactivates reverse mortgages. 3. Impact Reverse mortgage processing affects any organization that registers. MERS® System Procedures Manual – Release 23. 2. In the second case. each loan is processed separately on the MERS® System. saving the cost and effort of recording an assignment. (Note: In either case. selling the servicing more than 270 days after the original note date will incur a seasoned transfer fee. Business Procedure–One-Step Closing This is where the construction loan is modified to become the permanent loan. Impact Construction loan processing affects any organization that registers. maintains. or deactivates construction loans.) Closed on a MOM Security Instrument The MERSCORP Holdings Law Department (mers@mersinc. or they may be paid off by a permanent loan.org) is available for assistance with changing the language on the security instrument to make it a MOM loan. In the first case. 1. or you can close the construction loan on a standard document and assign it to MERS after it is modified to become permanent.0 – 12/10/2012 Construction Loan Processing • 59 . You can close the construction loan as a MOM loan and record the modification with MERS as mortgagee.Construction Loan Processing Overview Construction loans may be modified to become permanent loans once construction is complete. both the construction and permanent loans are registered on the MERS® System as one loan. The MOM security instrument must be: • • Given a valid MIN Sent for recording in accordance with state or investor guidelines MERS® System Procedures Manual – Release 23. the modification agreement must reflect MERS as the mortgagee and must be signed by an authorized MERS Signing Officer from your company. (The MERSCORP Holdings Law Department is available for assistance with changing the language on the modification agreement. When construction is completed. 2. MERS is not the mortgagee. • Closed on a Standard Security Instrument and Assigned to MERS 1. MERS is not the mortgagee. place a valid MIN on the assignment and send it for recording. If the permanent loan is sold to another MERS® System Member. Update the MERS® System to reflect the modification. There is no MIN and no registration on the MERS® System. Prepare and send for recording an Assignment From MERS. 3. Following the modification. in accordance with the MERS® System requirements for assigning loans to MERS. prepare an Assignment To MERS.0 – 12/10/2012 Construction Loan Processing • 60 . When construction is completed. 5. using your authorized MERS Signing Officer to sign in the name of MERS. 4. Close the loan using the standard construction loan security instrument used today.) 3. transfer the rights in the same manner as other MERS® System loans. If the loan is sold to a non-Member: • Deactivate the MIN in the MERS® System in accordance with the MERS® System requirements. prepare and send for recording the standard modification agreement. MERS® System Procedures Manual – Release 23. 2.• Registered on the MERS® System within seven calendar days of the Note Date (or Funding Date for escrow states). entering the information from the origination or servicing system. prepare and send for recording the standard modification agreement. 5. and register it on the MERS® System as an iRegistration. If the loan is sold to a non-Member after being assigned to MERS and registered: • Deactivate the MIN in the MERS® System in accordance with the MERS® System requirements. Register the loan on the MERS® System as a Non-MOM.0 – 12/10/2012 Construction Loan Processing • 61 . or before or after modification. 1. If the permanent loan is sold to another MERS® System Member. transfer the rights in the same manner as other MERS® System registered loans. because MERS is never the mortgagee. Prepare and send for recording an Assignment From MERS. MERS is not the mortgagee. using your authorized MERS Signing Officer to sign in the name of MERS. 6. Close the loan using the standard construction loan security instrument used today. MERSCORP Holdings recommends including the MIN on the security instrument for identification. • Closed on a Standard Security Instrument and Not Assigned to MERS (iRegistration) You may register a loan that does not have MERS as mortgagee as an iRegistration at origination. Transfers must be reflected.4. When construction is completed. Update the MERS® System to reflect the modification date and amount. MERS® System Procedures Manual – Release 23. in accordance with the MERS® System requirements. and selling the servicing more than 270 days after the original note date incurs a seasoned transfer transaction fee. 2. MERSCORP Holdings recommends including the MIN on the modification agreement for identification. If closed on a MOM security instrument. non-MOM.3. then assigned to MERS: • The assignment must be: • • Given a valid MIN Executed and recorded MERS® System Procedures Manual – Release 23. If the permanent loan is sold to another MERS® System Member. • Business Procedure–Two-Step Closing This is where the construction loan is paid off by the permanent loan. If the loan is sold to a non-Member after being registered: • Deactivate the MIN in the MERS® System in accordance with the MERS® System requirements. however. it will incur a separate registration fee. You can close the construction loan as MOM. the loan must be: • Given a valid MIN • Sent for recording in accordance with state or investor guidelines Registered on the MERS® System as a MOM loan within seven calendar days of the Note Date Processed as a Payoff on the MERS® System when it is paid off by the permanent loan • • If loan is closed on a Non-MOM security instrument. The construction loan may be closed using either a MOM or standard Security Instrument. 1. create a transfer transaction in the usual manner. MERS is not the mortgagee. or iRegistration.0 – 12/10/2012 Construction Loan Processing • 62 . Prepare and send for recording a standard assignment. since it is a separate loan from the permanent loan. 4. 4. using your authorized MERS Signing Officer to sign in the name of MERS.• The loan must be registered on the MERS® System as a Non-MOM loan within seven calendar days of the Assignment Date Payoff must be processed on the MERS® System when it is paid off by the permanent loan • If loan is neither closed on a MOM security instrument nor assigned to MERS. as you would any other loan. If the permanent loan is sold to a non-Member: • Deactivate the MIN in the MERS® System in accordance with the MERS® System requirements. If the permanent loan is sold to another MERS® System Member. 3. register the permanent loan on the MERS® System. but is registered as an iRegistration: • Give the loan a valid MIN • • Register it on the MERS® System as an iRegistration Process as a Payoff on the MERS® System when it is paid off by the permanent loan 2. • MERS® System Procedures Manual – Release 23. with a valid MIN. prepare and send for recording an Assignment From MERS.0 – 12/10/2012 Construction Loan Processing • 63 . For a MOM or Non-MOM loan. create a transfer transaction as for other MERS® System registered loans. When construction is completed. Registered Loans in Rated Securities Overview The MERS® System registered loans may be included in rated securities issued by MERS® System Members. 2. MERS® System Procedures Manual – Release 23. It is acceptable to combine the MERS® System registered and non-registered loans in the securitization. The process model is for the securitization Trustee to be named as the current Investor on the MINs. Impact This process has potential impact on the following types of organizations: • All Members Business Procedure ISSUER: 1. Pool loans and issue Securitization. 3. It is not necessary for the Trustee to be an active Investor. Identify the MERS® System registered loans included in the Securitization. Obtain the MERS® System Org ID for the securitization Trustee from the Trustee. Any MERS® System Member may choose to be a passive Investor and let the MERS® System process confirmations automatically.0 – 12/10/2012 Registered Loans in Rated Securities • 64 . Assignments normally recorded naming the Trustee as mortgagee of record are eliminated for all MERS® System registered loans in the securitization. The securitization serial number must be placed in the Pool Number field on the MERS® System for the MINs involved for an Agency securitization. For non-Agency securitizations. The MERS® System Member Trustees possess established MERS® System Org IDs and should supply these to the issuers. place the trust name in the Securitization field. If the trustee is not a MERS® System Member. see the MERS® System Reports Handbook: * * * * * * Transfer of Beneficial Rights Rejects/Warnings Pending Transfer of Beneficial Rights Overdue Transfer of Beneficial Rights Physical Transfer of Beneficial Rights Maintenance Verification Report Maintenance Reject/Warnings MERS® System Procedures Manual – Release 23. CUSTODIAN 1. for non-Agency securitizations update Securitization field. 3.4. For a detailed description of each report. Supply the MERS® System Org ID to Issuer 2. Review and reconcile the MERS® System reports. Confirm Transfer of Beneficial Rights Option 2 (if acting as active Investor).0 – 12/10/2012 Registered Loans in Rated Securities • 65 . Update Pool Number field for Agency securitization. a transfer to ORG ID 1000002 – “Undisclosed Investor” would be completed. Review and reconcile the MERS® System reports. TRUSTEE 1. Reports The following reports are generated as a result of the Registered Loans in Rated Securities process. 5. Process Transfer of Beneficial Rights Option 2 naming Securitization Trustee as new Investor. There are two types of investors in the MERS® System: • Member Investors (Investors who are MERS® System Members) Member Investors sign a MERS® System Application. you have the choice of processing confirmations of Transfer of Beneficial Rights transactions and all other transactions manually or automatically. and remove any Interim Funder or Warehouse/Gestation Lender interests from the loan. Non-Member Investors Non-Member Investors do not sign a MERS® System Application or pay the MERS® System fees and have no ability to access the MERS® System. • Option 1 Used only by Option 1 (or Agency) investors such as Freddie Mac. either of which may be initiated online or via batch. and have full access to the MERS® System. Option 2 transfers require confirmation from the new Investor. pay the MERS® System membership fees. Option 1 transfers require no confirmation. and Fannie Mae. Option 2 Used by most MERS® System Members. They must be represented on the MERS® System with Org ID 1000002. You cannot use this option to transfer to an Option 1 Investor. • MERS® System Procedures Manual – Release 23. As a Member Investor. Ginnie Mae. They do not remove Interim Funder or Warehouse/Gestation Lender interests from the loan.0 – 12/10/2012 Transfer of Beneficial Rights • 66 . to claim investor rights on loans transmitted to them. confirm their MERS® System transactions or retrieve any MERS® System reports.Transfer of Beneficial Rights Overview The Transfer of Beneficial Rights (TOB) transaction is used to track the transfer of beneficial rights from one investor to another. • There are two types of TOB transactions on the MERS® System. 0 – 12/10/2012 Transfer of Beneficial Rights • 67 . The debt can only be transferred by properly endorsing the promissory note to the transferee. up to ten (10) calendar days from the Transfer Date. Transfer of Beneficial Rights Overview Although the MERS® System tracks changes in ownership of the beneficial ownership rights for loans registered on the MERS® System. Loans in an Option 1 batch that have not been registered are automatically reprocessed (“cycled”) until the loans have been registered. you will receive an abbreviated version of the Transfer of Beneficial Rights Reject Report listing these unregistered MINs. the Investor transfers beneficial rights on a system other than the MERS® System and that system then initiates the MERS® System transaction. Option 1 investors receive notification when MIN cycling begins through the Transfer of Beneficial Rights Reject Report. The MERS® System will allow a MIN to co-exist in an Option 2 TOB batch and a Transfer of Servicing (TOS) batch only if the New Servicer and New Investor are the same entity. MERS® System Procedures Manual – Release 23.The seller must initiate all Transfer of Beneficial Rights transactions within five calendar days of the effective transfer date. As a MERS® System Member you have two options for tracking a transfer of beneficial rights to another Member: Option 1 and Option 2. If you include MINs that are not registered in your agency transmission. entering your MERS® System Org ID in the Investor field. The determination of whether Option 1 or Option 2 is used is based on the Membership Profile of the purchasing investor. If you register them after the 10 day cycling process is over. It is your responsibility to register these MINs immediately. you must name the Agency in the Investor field. the MERS® System cannot transfer the beneficial ownership rights to the debt. In an Option 1 transfer. Option 1 An Option 1 transfer can be created in either flat file/EDI X12 mode or online. The MERS® System will allow a MIN to co-exist in an Option 1 TOB batch and a Flow or Seasoned TOS batch. the duplicate MIN is deleted from the Option 2 beneficial rights transfer. MERS® System Procedures Manual – Release 23. MINs can exist simultaneously in an Option 1 beneficial rights transfer batch and a transfer of servicing batch. If a MIN is included in an Option 1 and an Option 2 beneficial rights transfer batch at the same time. No confirmations are required for Option 1 transfers. Additionally. Important dates for beneficial rights transfer (Option 1) are: • • Transfer Creation Date: the date the Investor creates the beneficial rights transfer on the MERS® System. Transfer Date: the date the beneficial rights are transferred to the new Investor. Interim Funder and Warehouse Gestation Lender interests are released automatically in an Option 1 beneficial rights transfer. May be the same as the Transfer Creation Date or the current processing date if the Transfer Creation Date is in the past. when the Option 1 beneficial rights transfer is completed. The investor that was removed during the Option 1 process is notified of its removal by the Investor Removed by Option 1 TOB report.0 – 12/10/2012 Transfer of Beneficial Rights • 68 . The MINs that were deleted from the Option 2 beneficial rights transfer appear on the MINs Deleted from Transfer of Beneficial Rights Report. See Transfer of Servicing Rights for details. Option 2 An Option 2 beneficial rights transfer is initiated on the MERS® System by the Servicer or Subservicer. Transfer Date Transfer creation date Beneficial rights transfer The Transfer Date cannot be changed nor the transfer canceled on Option 1 beneficial rights transfers. Non-duplicate MINs remain in the Option 2 transfer batch.An Option 1 Transfer of Beneficial Rights will replace any Option 2 investor on the loan. The New Investor cannot be an Option 1 Investor. o If the current Investor does not have the Approval of Option 2 beneficial transfer option selected in its Member Information Options. or removed by the Servicer or Subservicer if servicing is not transferred. Beneficial rights transfers can be created in flat file/EDI X12 mode and on MERS® OnLine. its confirmation is automatic.• The Servicer or Subservicer creates a pending beneficial rights transfer batch. all parties named in the batch can view the pending transaction using the View List of Batches feature in MERS® OnLine. Completed transfers with interim funding interests not released appear on the Coexisting Security Interest Report. The MERS® System will process transfers as they are confirmed until the Expiration Date. On the Transfer Date. The Interim Funder removes its security interests in the loans. The current Investor and the new Investor confirm or reject the transfer. Confirmation and reject activity for each processing cycle is reported on the Physical Transfer of Beneficial Rights report. This report is non-cumulative. • While a transfer is pending. and make the following changes: • The new Investor can confirm or reject MINs in the batch at any time prior to the Expiration Date. use the Modify ® Batch option in MERS OnLine to correct it while the Batch is in pending or overdue status. you can provide a Reject Reason. It is not necessary to have the Interim Funder interests removed for the beneficial rights transfer to be registered. Pool Number. or MINs that shouldn’t be included. o If the new Investor does not have the Approval of Option 2 beneficial transfer option selected in its Member Information Options. Transfer of Beneficial Rights • 69 MERS® System Procedures Manual – Release 23. Reject Reason definitions are specific to each investor.0 – 12/10/2012 . then the new Investor must supply the data for each MIN when it confirms the MINs. or Agency ID is required. The Warehouse Gestation Lender’s interests are automatically removed when a Transfer of Servicing rights processes. its confirmation is automatic. This activity will produce a Modified Batch –Transfer of Beneficial Rights report. o If you reject the transfer using MERS® OnLine. • • • • If you create a transfer Batch that has missing MINs. If the new Investor has indicated in its Member Information that Investor Loan Number. the MERS® System will process all transfers confirmed by that date. The initiating Member can cancel the entire batch any time prior to the completion of the batch on Option 2 transfers. This will remove any confirmations made before the date was changed. The party initiating the batch can change the Transfer Date. and the transfer batch status changes from transfer overdue to transfer Pending Delete. as long as that MIN has not been confirmed by the new Investor. but the new MINs will have to be confirmed by the new Investor before they will be transferred.0 – 12/10/2012 Transfer of Beneficial Rights • 70 . May be the same as the Transfer Date or within 30 calendar days of that date. reject a previously confirmed loan) any time prior to the Transfer Date. • • • • • Loans not completely confirmed or rejected by the Expiration Date (31 calendar days from the Transfer Date or from the Creation Date if Transfer Date is prior) are noted on the Expired Transfer Report. The new Investor can change the investor loan and pool numbers to reflect its own information The initiating Member can add MINs to the batch any time prior to the completion date. so all MINs will have to be confirmed again. as long as the new Investor has not confirmed the transfer. The initiating Member can delete any MIN from the batch. Transfer Expiration date: 31 calendar days after the Transfer Date MINs not confirmed or rejected by the expiration date will revert back to their original Investor.• The new Investor can change transfer confirmations (for example. Important dates for beneficial rights transfer (Option 2) are: • Transfer Creation Date: the date the Servicer or Subservicer creates the beneficial rights transfer transaction on the MERS® System Transfer Date: the date the beneficial rights are transferred to the new Investor. • • MERS® System Procedures Manual – Release 23. the loan must be ® registered on MERS. the MIN is transferred.Transfer creation date Transfer Date Transfer Date confirmations Beneficial rights transfer Transfer Expiration Date 31 days after Transfer Date If the Transfer Date is before the Transfer creation date. 2.0 – 12/10/2012 Transfer of Beneficial Rights • 71 . The MERS System Member selling beneficial rights delivers loans to the investor as it did before. The new Investor creates a batch transaction that transfers beneficial rights to itself on the MERS® System. but must include the MIN in the transmission. Impact The Transfer of Beneficial Rights process affects the following types of organizations: • • • • • • Servicers Subservicers Investors Interim funding lenders Document custodians Associated Members Business Procedure—Option 1 For Option 1. and then sells the loan to an Option 1 Investor. MERS® System Procedures Manual – Release 23. 1. When the Transfer Date is reached. The seller must include the MIN on the transmission to the Option 1 investor. listing itself as the Investor. The Investor then initiates the transfer of beneficial rights from its own system and the process below begins. the Transfer deletion date will be 31 calendar days after the Transfer creation date. This option is used when the seller registers the loan on the MERS® System. The investor then transfers beneficial rights for the loans it has agreed to purchase and updates MERS. up to 60 calendar days before the transaction origination date. 3. The seller enters the transfer of beneficial rights transactions on the MERS® System. 2. new Investor. 4. The MERS® System validates the information. MINs rejected due to nonregistration are automatically reprocessed up to 10 calendar days from the Transfer Date. 7. 6. Registered loans that are rejected from the batch transaction can be updated by the new Investor in MERS® OnLine using the Option 1 Transfer of Beneficial Rights. The system generates the usual milestone. 5. If the MIN has not been registered by the Transfer Date. Loans not registered within the ten day window may be registered with the new Investor’s Org ID in the Investor field. audit history. but the same option 1 investor appears as both previous and new investor. and report entries for each advance reported as an option 1 TOB. Note: This process is also used by some investors to reflect each additional principal advance against a Home Equity Conversion Mortgage (HECM). The Originator or Servicer. including the following information: • • • • • Transfer Date Current Investor New Investor New Custodian (if applicable) MINs The Transfer Date can be a past date. 1. or after registration the new Investor can update the loan in MERS® OnLine using the Option 1 Transfer of Beneficial Rights. and the Investor can choose whether to confirm or reject the transfer. MERS® System Procedures Manual – Release 23. old Investor. audit history.Loans that are rejected from the batch transaction should be ® updated by the Investor in MERS OnLine using the Option 1 transfer of beneficial rights. Option 1 investors are notified when the reprocessing cycle begins through the Transfer of Beneficial Rights Reject Report. and Custodian of the transfer of beneficial rights receive a Physical Transfer of Beneficial Rights Report.0 – 12/10/2012 Transfer of Beneficial Rights • 72 . Business Procedure—Option 2 The seller uses this option when selling to an Option 2 Investor. transfer audit history. and transfer audit history. or up to 180 days in the future. The transfer of beneficial rights appears on the MIN-level milestones. The current Servicer or Subservicer creates a pending beneficial rights transfer batch on the MERS® System. the batch continues to cycle for up to ten days. old Investor. The initiating Member may: • • Cancel the Option 2 Transfer of Beneficial Rights anytime before it is confirmed by the new Investor.3. whichever is later. 7. the MERS System reflects an overdue transfer status for the loan(s). or registration reversed. If the new Investor does not confirm the transfer by the Transfer Date. Processing Before the Transfer Effective Date the system will: • Automatically remove a MIN from the pending TOB Option 2 batch if it is transferred by a TOB Option 1 transaction. The initiating Member and current Investor receive a Pending Transfer of Beneficial Rights Report. new Investor. The current and new Investors confirm or reject the transfer at the batch. The transfer of beneficial rights appears on the MIN-level milestones. Pool Number. and old and new Document Custodians receive a Physical Transfer of Beneficial Rights Report. Use the Modify Batch option in MERS® OnLine to add MINs to or delete MINs from the batch while it is in pending or overdue status. audit history.0 – 12/10/2012 Transfer of Beneficial Rights • 73 . The current Servicer. 5. If the new Investor has indicated that Investor Loan Number. then the new Investor must supply the data fields for each MIN. deactivated. 6. Agency ID. securitization. ® 4. This will be reported on the Canceled Transfer of Beneficial Rights (BG) report. Automatically cancel the batch if all MINs have been removed from it. The MERS® System updates the Investor information on the Transfer Date or on the date that the Investor confirms the transfer. • MERS® System Procedures Manual – Release 23. The MERS System checks daily to determine if the Transfer Date has been reached. This activity will produce a Modified Batch –Transfer of Beneficial Rights Report. or loan level. or any combination of the three is required. • • If the Investor is a Passive Investor the confirmation is automatic. and transfer audit history. This will be reported on the Physical Transfer of Beneficial Rights (BB) report. pool. 0 – 12/10/2012 . the system will change the batch status to “Overdue” and list the remaining MINs on the Overdue Transfer of Rights Report (BC) • • NOTE about the Physical Transfer of Rights Report (BB): This report is NOT cumulative. and transfer audit history for each transferred MIN Mark these MINs as transferred on the Physical Transfer of Rights Report (BB) Remove from the batch all MINs rejected by the confirming Member (all MINs with at least one confirmation indicator set to “N”) and MINs removed by the system due to the MIN becoming deactivated or reregistered with a different servicer Mark these MINs as rejected or removed on the Physical Transfer of Rights Report (BB) If any unconfirmed MINs remain in the batch. audit history. active MINs Update milestones.On the Transfer Effective Date the system will: • • • • • Remove from the batch all confirmed MINs Update the rights holder for all confirmed. You must review it each time it is produced to see the activity from the previous cycle. These MINs will be marked as rejected or removed on the Physical Transfer of Rights Report (BB) Transfer of Beneficial Rights • 74 MERS® System Procedures Manual – Release 23. and transfer audit history for the MINs Mark these MINs as transferred on the Physical Transfer of Rights Report (BC) Remove from the batch all MINs newly rejected by the confirming Member (all MINs with at least one confirmation indicator set to “N”) and MINs removed by the system due to the MIN becoming deactivated or reregistered with a different Investor. audit history. After the Transfer Effective Date. for each processing cycle after the Transfer Effective Date. the system will: • • • • • Remove from the overdue batch all newly confirmed MINs Update the rights holder for these MINs Update milestones. For a detailed description of each report. or from the Creation Date if later). active unconfirmed MINs in the overdue batch. see the MERS® System Reports Handbook: * Pending Transfer Of Beneficial Rights Report Modified Batch – Transfer of Beneficial Rights Physical Transfer of Beneficial Rights Report Overdue Transfer of Beneficial Rights Report MINs Transferred to a Non-MERS Servicer Report Transfer of Beneficial Rights Rejects Report * * * * * * * * * * * Canceled Transfer of Beneficial Rights Report Expired Transfer of Beneficial Rights Report MINs Deleted from Transfer of Beneficial Rights Report Investor Removed by Option 1 Transfer of Beneficial Rights Report Summary of Transfer of Beneficial Rights Rejects Report MIN Milestone Report for Associated Members MERS® System Procedures Manual – Release 23. the MERS® System will: Produce an Expired Transfer (BD) report listing any unconfirmed MINs Mark the batch as “Pending Delete” and stop all further processing on the batch Not change the Investor field Reports The following reports are generated during the Transfer of Beneficial Rights process.If there are any remaining.0 – 12/10/2012 Transfer of Beneficial Rights • 75 . they will continue to be listed on Overdue Transfer of Rights Report (BC) If there are unconfirmed MINs in a batch 20 calendar days after the Transfer Effective Date. the system will display a message on the Welcome Page for both the initiating and confirming Members. On the Transfer Expiration Date (30 calendar days from the Transfer Date. and “Contact Servicer” will display for address and contact names. The Investor does not wish to view information on the MERS® System for loans on which it owns the Beneficial Rights.) The Investor does not desire to be a MERS® System Member. MERS® System Procedures Manual – Release 23.Transfer of Beneficial Rights to Non-Member Investors Overview It is not a requirement that an Investor be a MERS® System Member for a loan to remain on the MERS® System. the loans may be transferred by inserting Org ID 1000002 in the New Investor field. 2. (The name “Undisclosed Investor” will appear in the Member Summary for this Org ID. Impact This process has potential impact on the following types of organizations: • All MERS® System Members Business Procedure 1. (If Investor requires an assignment out of MERS. As part of the normal Investor Approval process for transfers or loan deliveries.0 – 12/10/2012 Transfer of Beneficial Rights • 76 . see Transfer to Non-MERS Status deactivation. You will identify non-Member investor loans and transfer the beneficial rights in the MERS® System using Organization ID 1000002 as New Investor. For private investors. you must notify the Investor of your intent to name MERS as the Mortgagee of Record by delivering a MOM security instrument or through an assignment to MERS.) The following criteria must be met to use this Org ID: No assignment has been recorded naming the Investor as mortgagee of record. where an assignment in the Investor’s name is not required. and does not wish to review any MERS® System reports for transactions associated with those loans. see the MERS® System Reports Handbook: * * * * Physical Transfer of Beneficial Rights Report Transfer of Beneficial Rights Rejects Report Summary of Transfer of Beneficial Rights Rejects Report MIN Milestone Report for Associated Members MERS® System Procedures Manual – Release 23. For a detailed description of each report.Reports The following reports are generated for beneficial rights transfer to a non-Member.0 – 12/10/2012 Transfer of Beneficial Rights • 77 . Impact The Removal of Interim Funder Security Interests affects the following types of organizations: • • • • • Interim funding organizations Investors Servicer Subservicers Associated Members Removing Interim Funder Security Interests • 78 MERS® System Procedures Manual – Release 23. the Interim Funder removes its security interests before or after the transfer of beneficial rights has been completed to the new investor. it is not necessary to have the interim funding interest removed for the beneficial rights transfer to occur. If the Option 1 beneficial rights transfer is used. which notes the coexisting beneficial interests. The Interim Funder reviews any wiring instructions provided to it by the originator as applicable and contacts the seller of the beneficial interests if there are problems.0 – 12/10/2012 .Removing Interim Funder Security Interests Overview Interim funding interests are removed from the MERS System in two situations: • Indirectly by the investor when an Option 1 transfer of beneficial rights is completed and the Interim Funder is removed from the loan record by an investor purchase Directly by the Interim Funder when it has been reimbursed. On Option 2 transfers. completed transfers with existing interim funding interests will appear on an exception report. If the Option 2 beneficial rights transfer is used. either by the Lender. however. or another Interim Funder • The Interim Funder can remove its security interest from the MERS System once they no longer have an interest in the loan or are made whole. Investor. the interim funding interests are removed automatically. 2. and the Interim Funder is automatically removed. The Interim Funder verifies that its advance on this loan has been repaid. Business Procedure—TOB Option 2 1. 5. 5. The Interim Funder organization receives a Release of Security Interests by Interim Funder Verification Report 6. The Servicer sells the loan to an Option 1 Investor (Fannie Mae for example) and includes the MIN in its loan delivery transmission.0 – 12/10/2012 Removing Interim Funder Security Interests • 79 . MERS® System Procedures Manual – Release 23. The Servicer then initiates an Option 2 transfer of beneficial rights on the MERS® System. 2. identifying the Interim Funder at registration as holder of a secured interest on the MERS® System. The Servicer registers the loan. 3. 4. The removal of Interim Funder appears on the MIN-level milestones. The Servicer registers the loan. The beneficial interest on the sold loan(s) is transferred to the investor.Business Procedure—TOB Option 1 The following business procedure is used for removing Interim Funder security interests with a TOB Option 1 transaction: 1. 6. The new Option 1 Investor creates a batch transaction that updates the MERS® System. identifying an Interim Funder entity as holder of a secured interest on the MERS® System. The Interim Funder reviews any wiring instructions provided to it by the lender as applicable and contacts the seller of the beneficial interests if there are problems. The Interim Funder removes its secured interest on the MERS System. 4. The removal of Interim Funder appears on the MIN-level milestones. 3. usually because of the investor purchase. The Investor purchasing the beneficial rights confirms or rejects the transfer of beneficial rights. the Interim Funder. the Servicer or Member selling the rights and the Document Custodian (if applicable) receive a Release of Security Interests by Interim Funder Verification Report. Reports The following reports are generated during the interim funding process.7. The Investor. see the MERS® System Reports Handbook: * * * * Coexisting Security Interests Report Release of Security Interests by Interim Funder Report Interim Funding Reject Report MIN Milestone Report for Associated Members MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Removing Interim Funder Security Interests • 80 . For a detailed description of each report. the Warehouse Gestation Lender interests are removed automatically. If the Option 1 beneficial rights transfer is used.Removing Warehouse/Gestation Lender Security Interests Overview The Warehouse Gestation Lender field can be cleared on the MERS® System when your organization no longer has an interest in the loan or is made whole. Impact The Removal of the Warehouse Gestation Lender security interests affects the following types of organizations: • • • • • Interim funding organizations Investors Servicer Subservicers Associated Members MERS® System Procedures Manual – Release 23. Completed Option 2 transfers with existing Warehouse Gestation Lender interests will appear on an exception report. Warehouse Gestation Lender interests are removed from the MERS System in three ways: • • • Indirectly when an Option 1 transfer of beneficial rights is completed Indirectly when a Transfer of Servicing rights is completed Directly by the Servicer or Subservicer It is not necessary to have the Warehouse Gestation Lender interest removed for a beneficial rights transfer to occur. The Warehouse Gestation Lender reviews any wiring instructions provided to it by the originator as applicable and contacts the seller of the beneficial interests if there are problems. which notes the coexisting beneficial interests.0 – 12/10/2012Removing Warehouse/Gestation Lender Security Interests • 81 . The Warehouse Gestation Lender organization receives a MIN Milestone Report for Associated Members and a Change Notification Report. The Warehouse Gestation Lender reviews any wiring instructions provided to it by the lender as applicable and contacts the seller of the beneficial interests if there are problems. The beneficial interest on the sold loan(s) is transferred to the investor. The new Option 1 Investor creates a batch transaction that updates the MERS® System. The Servicer sells the loan to an Option 1 Investor (Fannie Mae for example) and includes the MIN in the loan delivery transmission. 3. The Servicer then initiates an Option 2 transfer of beneficial rights on the MERS® System. 3. The Servicer registers the loan. 2. Business Procedure—TOB Option 2 1.0 – 12/10/2012Removing Warehouse/Gestation Lender Security Interests • 82 . identifying the Warehouse Gestation Lender entity as holder of a secured interest on the MERS® System. The Servicer registers the loan. identifying the Warehouse Gestation Lender at registration as holder of a secured interest on the MERS® System. 6. and the Warehouse Gestation Lender is automatically removed from the MIN 4. The removal of Warehouse Gestation Lender appears on the MIN-level milestones. 5. MERS® System Procedures Manual – Release 23. 2.Business Procedure—TOB Option 1 The following business procedure is used for removing Warehouse Gestation Lender security interests using a TOB Option 1 transaction: 1. The Investor purchasing the beneficial rights confirms or rejects the transfer of beneficial rights. For a detailed description of each report. The Warehouse Gestation Lender’s interest is automatically removed by a Transfer of Servicing Rights. The removal of Warehouse Gestation Lender appears on the MIN-level milestones. or removed by the Servicer or Subservicer if servicing is not transferred. 8. 6. see the MERS® System Reports Handbook: * * * Coexisting Security Interests Report MIN Milestone Report for Associated Members Change Notification Report. usually because of the investor purchase. 5. 7.4. The Warehouse Gestation Lender verifies that its advance on this loan has been repaid. The Coexisting Security Interests Report informs the Investor and Warehouse Gestation Lender of their mutual security interests.0 – 12/10/2012Removing Warehouse/Gestation Lender Security Interests • 83 . Reports The following reports are generated during the removal of Warehouse Gestation Lender security interests process. MERS® System Procedures Manual – Release 23. The Warehouse Gestation Lender receives the MIN Milestone Report and the Change Notification Report. MERS® System Procedures Manual – Release 23. In a flow batch. The determination of whether a transfer is seasoned (and therefore incurs a seasoned transfer fee) is based on how long after the note date the loan is transferred on the MERS® System.0 – 12/10/2012 . the MERS® System will move the flow and seasoned MINs to separate batches. if the sale and transfer dates submitted are not equal. The MERS® System defines flow transfers of servicing rights as those completed 270 calendar days or less after the note date. If submitted through the Flat File/EDI X12. If the Investor (such as Ginnie Mae) requires Servicer Agency ID. The MERS® System will distinguish the difference between flow and seasoned transfers of servicing rights and bill the applicable fee for seasoned transfers. There is no fee for flow transactions regardless of how many flow transactions a MIN undergoes. the Servicer can update each MIN in the batch. When a TOS transaction contains both flow and seasoned MINs. Refer to the Integration Handbook Volume II and the EDI Implementation Guide for details. Servicers with Transfer of Servicing Rights • 84 NOTE FOR FLAT FILE/EDI X12 USERS: To update the MIN with Agency ID without affecting the confirmations. MERSCORP Holdings management reserves the right to examine the Purchase and Sale Agreement under which a sale and transfer of servicing rights occurs if there is doubt whether a particular transfer meets the flow criteria.Transfer of Servicing Rights Overview There are two types of servicing rights transfers: flow transfer of servicing rights and transfer of seasoned servicing rights. use a 252 transaction with “N” (No) for Confirmation action code. Both fields must contain “N” in order to bypass the confirmation edits. the MERS® System will change the sale date to equal the transfer date. A seasoned transfer of servicing rights is one that occurs more than 270 days after the note date. the system will create additional batches for each Investor involved in the batch. Note: Both seller and buyer are responsible for completing the transfer on the MERS® System in a timely manner. and Confirmation for Effective Date. the new Servicer must provide its Agency ID either at the MIN level or in its Member Information (which will then populate the MIN with the Agency ID) after confirmations and before transfer occurs. If the batch is already created but is lacking Agency IDs. The MERS® System automatically creates the appropriate batches based on the current Investor listed on the MIN for batch transactions. • The seller must initiate all Transfer of Servicing Rights transactions within five calendar days of the effective transfer date. the roles of any Subservicer (both current and new) and Investor are considered. the Servicer will use the Confirm Batch transaction. A MIN can only exist in one transfer of servicing rights at a time. In a Flat File/EDI X12 process. MINs that already exist in a TOS or TOB Option 2 batch will reject and appear on the reject report. • If some of the MINs in the TOS batch are also in the Option 1 TOB. MERS® System Procedures Manual – Release 23. the batch is created if at least one MIN is valid.0 – 12/10/2012 Transfer of Servicing Rights • 85 . a new batch is not created. and the existing TOS batch is updated with the new Investor. To update a TOS batch. If a conflict occurs. 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. and create a new batch for them using the new Investor If all the MINs in the TOS batch are also in the Option 1 TOB. for MINs that match the flow criteria. and can only exist in an Option 2 TOB transaction and a TOS transaction simultaneously if the New Servicer and New Investor are the same entity.more than one Agency ID for that Investor must update each MIN unless the Agency ID to be used is included in their MERS® System Member Information. Any combination of these roles is supported in the MERS® System. the following happens: • In MERS® OnLine. the second transaction rejects during creation and the batch cannot be created until the “conflicting” batch is processed or canceled or the “conflicting” MIN is removed from the batch to be created. the system will automatically delete the duplicate MINs from the TOS batch. • A MIN can exist in a TOS batch and an Option 1 TOB batch simultaneously. When a current Servicer sells servicing rights to loans it services to a new Servicer. the confirmation for the Current Servicer is automatic. If the new Servicer is a Non-Member. Transfer Date.Impact The transfer of servicing rights process has potential impact to the following types of organizations: • • • • • • Servicers Subservicers Investors Document Custodians Associated Members The general process in a Transfer of Servicing rights is: The current Servicer or Subservicer creates a pending transfer of servicing rights on the MERS® System and specifies the new Servicer and/or Subservicer. a deactivation transaction is used instead of the TOS transaction. Sale Date (if different from the Transfer Date). Investor. and new Document Custodian. Custodians. Transfer of Servicing Rights • 86 • • • • • The confirmation for the initiating Member is automatic. any Subservicer. The new Servicer.0 – 12/10/2012 . and the Investor (if required) are notified of the pending transfer by a Pending Transfer of Servicing Rights Report. The initiating Member can change the Transfer Date anytime before the Transfer Date is reached. (See Transfer to Non-MERS Status. the current Servicer is responsible for preparing and recording assignments in the county land records evidencing the transfer of title to the new Servicer. If the new Servicer is a Non-Member.) If the Servicer creates the TOS. • MERS® System Procedures Manual – Release 23. The initiating Member can cancel the transfer batch anytime before the transfer takes place. as long as no MINs in the batch have been confirmed. • • The Servicer may create a Transfer of Servicing Rights transaction when a Subservicer is also named on the MIN. or for an iRegistration. the New Subservicer is required to confirm the transfer. and the Current Servicer must confirm the transfer. you can choose from a dropdown list of Reject Reasons. the confirmation for the new Servicer is automatic. • When the Current Servicer creates a batch naming itself as the New Subservicer. • • • If there is no New Subservicer. The New Servicer (or New Subservicer if present). or Investor (only for seasoned loans. the New Servicer confirms the transfer. When the Current Subservicer creates a batch naming itself as the New Servicer. • If there is a New Subservicer. the Investor confirms the transfer. the confirmation for the New Subservicer is automatic.• If the Subservicer creates the TOS. and only if Investor has specified in Member Information that it must confirm transfers of servicing rights) may reject the transfer any time before the transfer date. Specific definitions for these Reject Reasons are determined by each Member. When the Current Subservicer creates a batch naming itself as the New Subservicer. if the Investor has specified in Member Information that it must confirm transfers of servicing rights on its loans. the System will automatically update each MIN in the batch with the Transfer of Servicing Rights • 87 • • MERS® System Procedures Manual – Release 23. the confirmation for the New Subservicer is automatic. • When the Current Subservicer creates a batch naming itself as the New Servicer without naming a New Subservicer.0 – 12/10/2012 . the New Subservicer confirms the transfer. • If you reject the transfer as the New Servicer or New Subservicer. • For seasoned transfers only. Current Servicer. and naming a New Subservicer. the confirmation for the Current Subservicer is automatic. • If the Investor has indicated in its Member Information that Agency ID is required. using MERS® OnLine. and on each processing day that the batch remains in overdue status: • MINs that have been confirmed by all necessary parties will transfer to the new Servicer and/or Subservicer. and the New Servicer does not confirm. On the Transfer Date. and the remaining MINs will not be transferred. Once the transfer has taken place.0 – 12/10/2012 . the new Servicer or Subservicer can update Associated Member information. • MINs can still be confirmed while batch status is overdue. or the remove Custodian indicator. Flow Transfer of Servicing Rights Note Date MINs with a note date 270 or fewer calendar days from the Transfer Date will be processed in a flow TOS batch. The Agency ID will update to null values if the new Investor does not require Agency ID. The following error Transfer of Servicing Rights • 88 MERS® System Procedures Manual – Release 23.• • • Agency ID listed in the new Servicer’s Member Information. • If the Flow TOS Flat File/EDI X12 transaction is used: If the note date on one or more MINs is more than 270 days before the Transfer Date. • The current Custodian remains on the MIN unless a new Custodian. • Associated Members (with the exception of Warehouse Gestation Lender) identified on each transferred MIN remain with that MIN The current Servicer or Subservicer can delete the Associated Member anytime before the transfer takes place. the batch will be cancelled. the flow transfer of servicing rights batch is created without those MINs. • Any existing Warehouse Gestation Lender is removed from the MIN. If any MINs remain in the batch on the Transfer Expiration Date (30 calendar days after the Transfer Date or batch creation date. the old Servicer or Subservicer cannot update the loans. MINs that are rejected by any party will be removed from the batch without being transferred. is specified when the transfer is created. • After the transfer is complete. MINs that are neither confirmed nor rejected will remain in the batch in an overdue status. whichever is later). and you will be charged only for the seasoned transfers. the Sale Date is automatically set equal to the Transfer Date when you complete the Transfer Date field.” Seasoned Transfer of Servicing Rights Note Date MINs with a note date more than 270 calendar days before the Transfer Date will be processed in a seasoned TOS batch. It will separate flow and seasoned MINs into separate transfer batches. Sale Date/Transfer Date Because there is not a “staging” period in a flow transfer of servicing. In a Flat File/EDI X12 process. the MERS® System defaults the Sale Date to the value in the Transfer Date field. the Sale Date is set equal to the Transfer Date when the batch is created on the MERS® System. Milestones Updated The milestones generated for MINs that transfer successfully in a flow TOS are labeled “Transfer of flow servicing rights. an investor does not have the ability to confirm a flow transfer of servicing transaction. The approval options indicated in Member Information apply to seasoned transfer of servicing transactions. the following warning message appears on the Rejects/Warnings report for the flow TOS batch: “Sale Date is not allowed.message appears for the rejected MINs on the Transfer of Servicing Rights Reject Report: “Transfer Date is past the cutoff for a flow transaction” • Use the TOS Flat File/EDI X12 transaction instead of the Flow TOS Flat File/EDI X12 transaction if you also have seasoned MINs to transfer.0 – 12/10/2012 Transfer of Servicing Rights • 89 . • • In MERS® OnLine.” No Investor Confirmation of Flow Transfer of Servicing To reflect current industry practices. regardless of the approval options indicated in Member Information. If the initiator of a TOS transaction enters a value in the Sale Date field for the batch. MERS® System Procedures Manual – Release 23. The Transfer Date is when the new Servicer or Subservicer begins the physical servicing of the loan. The dates are specified in the purchase and sale agreement between the buyer and seller of servicing rights. Sale Date. This approval option applies to seasoned TOS only. new Servicer. • • Investor Confirmation An Investor may choose to confirm seasoned TOS transactions for loans on which they are the Investor. The transfer on the MERS® System takes place on the Transfer Date if all necessary confirmations have been made. • The buyer purchases the servicing rights on the Sale Date. The approval option is set by MERSCORP Holdings in Member Information.0 – 12/10/2012 Transfer of Servicing Rights • 90 . if all necessary confirmations have not been made. although there may be more reasons for an involuntary transfer than the Servicer defaulting.Sale Date and Transfer Date The Sale Date is when the buyer purchases the servicing rights. and the buyer physically begins servicing the loans on the Transfer Date. • MERS® System Procedures Manual – Release 23. The Investor contacts the MERSCORP Holdings corporate offices when they have made a decision to transfer servicing from a Servicer on the MERS® System. • The Involuntary Transfer/Default by Servicer TOS in which loans are transferred to a MERS® System Member is processed by MERSCORP Holdings for most Members. whichever is later. The Investor identifies the current Servicer. and Transfer Date. The transfer batch on the MERS® System is cancelled 30 calendar days after the Transfer Date or transfer batch creation date. Milestones Updated The milestones generated for MINs that transfer successfully in a seasoned TOS are labeled “Transfer of seasoned servicing rights.” Involuntary Transfer/Default by Servicer—Loans transferred to a MERS® System Member The system currently represents an involuntary transfer as a default by the Servicer. MERSCORP Holdings may give Option 1 Investors access to an Option 1 TOS transaction for default by servicer. If the old Servicer has a Subservicer. The current Subservicer may also be instructed to perform the transfers. MERSCORP Holdings initiates a transfer of servicing transaction on behalf of the current Servicer. that Member is not able to log on to MERS® OnLine or perform any transactions on the MERS® System. including X12 or flat file transactions. MERSCORP Holdings assumes the role of that Subservicer (only for purposes of updating the MERS® System and does not actually service or subservice any loans) and creates separate transfer of servicing transactions on behalf of the Subservicer. When the Lockout Flag is set for a Member. The new Servicer is also required to confirm the transfer of servicing. • • • • • • • • MERS® System Procedures Manual – Release 23. If any loans included in the involuntary transfer/default by Servicer transaction also exist in another TOS batch.• The Investor may ask MERSCORP Holdings to temporarily set the Lockout Flag for the Servicer. The Investor confirms the transfer of servicing transaction if they have signified on their member profile they wish to approve servicing transfers. Reporting and milestone generation are identical to the other transfer of servicing processes. The Option 1 TOS allows the current Investor on a loan to complete a Transfer of Servicing transaction without confirmation being required from either the old or new Servicer. The Investor instructs MERSCORP Holdings which loans to transfer. A more specific lockout may be set to affect all loans on the MERS® System that are associated with that Servicer for that Investor. MERSCORP Holdings will notify via email all Members impacted by the lockout. MERSCORP Holdings assumes the role of the initiator of the pending TOS batch and deletes these MINs from the pending transaction. All parties involved in the canceled TOS batch will receive a Canceled Transfer of Servicing Rights Report.0 – 12/10/2012 Transfer of Servicing Rights • 91 . but it may be cancelled by the initiator if it was created in error. The Member Options page in MERS® OnLine denotes if a Member is allowed to perform Option 1 TOS transactions • Involuntary Transfer/Default by Servicer—Loans transferred to a non-Member Servicer See Deactivations chapter. An Option 1 TOS batch cannot be confirmed.0 – 12/10/2012 Transfer of Servicing Rights • 92 . or modified. An Option 1 TOS cannot be performed on: o A MIN where the Servicer and Investor are the same (use TOS or TOS/TOB transaction instead) o A MIN in a pending Option 1 TOB batch o A MIN in a pending Option 2 TOB batch initiated by the Investor (Investor can cancel TOB batch and then create Option 1 TOS batch) • • • A MIN included in an Option 1 TOS batch will be removed from any existing transfer batch. or through flat files or EDI transactions.• Once this transaction type is authorized by MERSCORP Holdings for their organization. the Option 1 Investor can create Option 1 TOS transactions in MERS® OnLine. rejected. and will not be allowed to be included in any new transfer batch. Involuntary Transfer/Default by Servicer section. MERS® System Procedures Manual – Release 23. initiated by the Servicer or Subservicer: o Option 2 TOB o TOS • A MIN will be automatically removed from a pending Option 1 TOS batch if it is included in a new Option 1 TOB batch. • Update the rights holder for all confirmed. If ALL MINs in the TOS batch are also in an Option 1 TOB batch. the system will: • Delete the duplicate MINs from the pending TOS batch • Create a new TOS batch containing the duplicate MINs • Carry over confirmation settings to the new batch (for example. the system will: • Update the Investor of the existing TOS to the new Investor in the TOB Option 1 • Set the Agency ID for each MIN in the new batch to match the value (if any) in the TOB Option 1 batch On the Transfer Effective Date… (or in the current processing cycle if the Transfer Date is less than the current date) the system will: • Remove from the batch all confirmed MINs. and any changes to confirmations or rejections must be completed before the transfer occurs. If SOME MINs in the TOS batch are also in an Option 1 TOB batch. and the New Investor Org ID for the TOB batch is the same as the New Servicer Org ID for the TOS batch. • Update milestones for each transferred MIN • Mark these MINs as transferred on the Physical Transfer of Rights Report (SC) MERS® System Procedures Manual – Release 23. those three MINs will show a confirmed status) • Set the Agency ID for each MIN in the new batch to match the value (if any) in the TOB Option 1 batch • Report the duplicate MINs on the MINs Deleted From Pending TOS Rights Report (SI) The current Servicer/Subservicer should remind the new Servicer/Subservicer that the duplicate MINs are in a new TOS batch.Processing During the creation of a TOS batch… If a MIN already exists in an Option 2 TOB batch. if you have confirmed the transfer for three MINs. then that MIN cannot be rejected from the TOS batch. active MINs.0 – 12/10/2012 Transfer of Servicing Rights • 93 . unconfirmed MINs in the overdue batch. If there are unconfirmed MINs in a batch 20 calendar days after the Transfer Effective Date. After the Transfer Effective Date… For each processing cycle. the system will change the batch status to “Overdue” and list only the remaining MINs on the Overdue Transfer of Servicing Rights Report (SE) NOTE about the Physical Transfer of Servicing Rights Report (SC): This report is NOT cumulative. You must review it each time it is produced to see the activity from the previous cycle. If there are any remaining active. the system will: • • • • • Remove from the overdue batch all newly confirmed MINs Update the rights holder for these MINs Update milestones for each transferred MIN Mark these MINs as transferred on the Physical Transfer of Servicing Rights Report (SC) Remove from the batch all MINs newly rejected by the confirming Member (all MINs with at least one confirmation indicator set to “N”) and MINs removed by the system due to the MIN becoming deactivated or re-registered with a different servicer Mark these MINs as rejected or removed on the Physical Transfer of Servicing Rights Report (SC).• Remove from the batch all rejected MINs (all MINs with at least one confirmation indicator set to “N”) and MINs removed by the system due to the MIN becoming deactivated or reregistered with a different servicer • Mark these MINs as rejected or removed on the Physical Transfer of Servicing Rights Report (SC) • If there are any remaining unconfirmed MINs left in the batch. the system will display a message on the Welcome Page for both the initiating and confirming Members. • MERS® System Procedures Manual – Release 23. they will be listed on the Overdue Transfer of Servicing Rights Report (SE).0 – 12/10/2012 Transfer of Servicing Rights • 94 . This activity will produce a Modified Batch –Transfer of Servicing Rights Report • • • • • • • • 2.On the Transfer Expiration Date… (30 calendar days from the Transfer Date or from the Creation Date if Transfer Date is prior) the system will: • • Produce the Expired Transfer of Servicing Report (SD) listing any unconfirmed MINs Mark the batch as “Pending Delete” and stop all further processing on the batch. The MERS® System validates the information. The new Servicer or Subservicer confirms the transfer (except for an Option 1 TOS). The current Servicer or Subservicer (or Investor for an Option 1 TOS) initiates the transfer transaction by entering the following loan transfer information: • Sale Date (used for seasoned transfer only) The Sale Date may be a future date or up to 60 calendar days prior to the transaction creation date. Transfer Date Org ID of current Investor Org ID of current Servicer Org ID of current Subservicer (if applicable) Org ID of new Servicer Org ID of new Subservicer (if applicable) Org ID of new Custodian (if applicable) MIN(s) If you create a transfer Batch that has missing MINs. On a Flow TOS. Subservicer.0 – 12/10/2012 Transfer of Servicing Rights • 95 . 4. 3. The old and new Servicers reconcile the transfer information. 5. The current and new Servicer. Business Procedure The seller must initiate all Transfer of Servicing Rights transactions within five calendar days of the effective transfer date. and Interim Funder of the loans to be transferred receive and review a Pending Transfer of Servicing Rights Report every day the transfer is in a pending status. 1. MERS® System Procedures Manual – Release 23. use the Modify Batch option on ® MERS OnLine to correct it while the Batch is in pending or overdue status. 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 MINs that shouldn’t be included. Investor. Transfer Date is used for Sale Date. Document Custodian. it is removed. the Investor confirms the transfer (if applicable). 12.0 – 12/10/2012 . If the transfer is still not confirmed 30 calendar days after the Transfer Date. The current and new Servicer. 11. On a seasoned transfer of servicing rights. 7. If a Property Preservation Company appeared on the MIN before the transfer. see the MERS® System Reports Handbook: * * * * * * * * * * * Pending Transfer of Servicing Rights Report Sale of Servicing Rights Report Modified Batch – Transfer of Servicing Rights Physical Transfer of Servicing Report Expired Transfer of Servicing Rights Report Overdue Transfer of Servicing Rights Report Transfer of Servicing Rejects Report Canceled Transfer of Servicing Rights Report Current Investor Changes for Pending Transfer of Servicing Rights Report MINs Deleted from Pending Transfer of Servicing Rights Report MIN Milestone Report for Associated Members Transfer of Servicing Rights • 96 MERS® System Procedures Manual – Release 23. 8. Subservicer. 10. and Interim Funder receive a Physical Transfer of Servicing Rights Report. 13. 9. the seller no longer has update access to transferred loans. For a detailed description of each report. 6.Once this transaction has been completed. it is removed. If a Warehouse/Gestation Lender appeared on the MIN before the transfer. Investor Document Custodian. The transfer of servicing rights appears on the MIN-level milestones. the seller remains in the Servicer ® field on the MERS System. The transfer takes place on the Transfer Date. Reports The following reports are generated during the Transfer of Servicing Rights process. All Associated Members on the MIN receive the MIN Milestone Report for Associated Members. Impact The transfer of servicing rights process has potential impact to the following types of organizations: • • • • • Servicers Subservicers Investors Document Custodians Associated Members TOS/TOB Combination • 97 MERS® System Procedures Manual – Release 23. A MIN contained in a TOS/TOB Combo may exist simultaneously in an Option 1 TOB. You can designate a new Document Custodian.0 – 12/10/2012 .TOS/TOB Combination Overview This chapter describes how to perform a single transaction. However. any MIN contained in a TOS/TOB Combo cannot exist simultaneously in another TOS or an Option 2 TOB. or delete all Document Custodians on the MINs in the TOS/TOB Combo batch. This transaction may only be initiated by the current Servicer or Subservicer on the MIN. called a TOS/TOB Combo. Like the TOS. and may be performed either in MERS OnLine or by EDI X12/Flat File. but you can also designate a new Subservicer. Both beneficial and servicing rights must be transferring from a single Member to a single Member. the TOS/TOB Combo will only generate a transaction fee if the transfer date is more than 270 days later than the note date. The transaction has the same requirements and undergoes the same processing criteria as the TOS and TOB Option 2 transactions outlined in the Transfer of Servicing Rights and Transfer of Beneficial Rights chapters. to reflect a Transfer of Servicing Rights (TOS) and an Option 2 Transfer of Beneficial Rights (TOB). for which the transferring Member will be billed the applicable fee. or up to 30 days before. and the entire batch may be canceled by the Member that created the transaction anytime before it is confirmed by the receiving Member. MINs with a note date 270 or fewer calendar days prior to the transaction effective date will create a Flow TOS/TOB batch. All MINs identified in the TOS/TOB Combo transaction must be “Active (Registered)”.0 – 12/10/2012 . Carry over confirmation settings to the new batch (for example. if you have confirmed the transfer for three MINs. the transfer creation date. The Transfer Date may be up to 180 days after.Transfer Dates The Member that creates the TOS/TOB Combo transaction will identify both a Transfer Date and Beneficial Rights Transfer Date. Set the Agency ID for each MIN in the new batch to match the value (if any) in the TOB Option 1 batch. The MINs left in the original TOS/TOB are not affected. If SOME of the MINs in the pending TOS/TOB batch also exist in a TOB Option 1 batch. The transfer dates may be changed any time prior to the transfer completion date by the Member that created the transaction. the system will: • • Delete the duplicate MINs from the pending TOS/TOB batch Report the duplicate MINs on the “MINs Deleted From Pending TOS Rights” report (SI) and the “MINs Deleted from Transfer of Beneficial Rights” report (BH) • Create a new Flow TOS batch containing any duplicate MINs with a note date 270 or fewer days before the transfer date. TOS/TOB Combination • 98 • • MERS® System Procedures Manual – Release 23. those three MINs will show a confirmed status). MINs with a note date more than 270 calendar days prior to the transaction effective date will create a Seasoned TOS/TOB batch. The Beneficial Rights Transfer Date cannot be later than the TOS date. but may be a retroactive date within 60 calendar days of the transaction creation date. The current Servicer/Subservicer should remind the new Servicer/Subservicer that the duplicate MINs are in a new TOS batch. and any changes to confirmations or rejections must be completed before the transfer occurs. This batch will retain the original batch number. Report the deleted MINs on the “MINs Deleted From Pending TOS Rights” report (SI) and the “MINs Deleted from Transfer of Beneficial Rights” report (BH). If ALL MINs in the pending TOS/TOB batch are also in an Option 1 transfer of beneficial rights batch. as long as the MINs have not yet been confirmed by the receiving party. o Cancel the entire batch any time prior to the completion of the batch MERS® System Procedures Manual – Release 23. all parties named in the batch can view the pending transaction using the View List of Batches feature in MERS® OnLine. Update the Investor of the Flow TOS batch to the new Investor named in the TOB Option 1 Set the Beneficial Transfer date to null since it will not be used in the resulting Flow TOS Set the Agency ID for each MIN in the new batch to match the value (if any) in the TOB Option 1 batch • • • • Once a transfer is created and pending. o Change the Transfer Date. Once a transfer is created: • The transfer initiator can: o Add MINs using Modify Batch any time before the transfer is completed. o Delete MINs from the batch using Modify Batch.0 – 12/10/2012 TOS/TOB Combination • 99 . the system will: • • Delete any seasoned MINs from the pending TOS/TOB batch. Change the transfer type of the batch from TOS/TOB Combo to Flow TOS. 0 – 12/10/2012 .• • • The new or old Servicer/Investor can confirm or reject loans from the batch at any time prior to the Transfer Date. A seasoned TOS/TOB will use the Sale Date if one is entered. The investor loan and pool numbers can be changed by the new Investor to reflect its own information If the initiating Member named an incorrect Document Custodian or Subservicer in the batch. A TOS/TOB combo transaction can be confirmed via MERS® OnLine or through a flat file/EDI X12 transmission. Specific definitions for these Reject Reasons are determined by each Servicer/Investor. Business Procedure The seller initiates the TOS/TOB Combo either in MERS® OnLine or via batch. the batch must be cancelled and recreated. TOS/TOB Combination • 100 • • • • • • • MERS® System Procedures Manual – Release 23. using MERS® OnLine. The New Servicer/Investor only confirms the servicing rights transfer. • The Sale Date will default to the Transfer Date entered. The current Investor and the current Servicer must have the same Org ID. Pool Number or batch any time before the Transfer Date. The MIN Information window will reflect that a MIN currently exists in a pending TOS/TOB batch. you can choose from a dropdown list of Reject Reasons. • If you reject the transfer as the new Servicer/Investor. The Transfer Date and Beneficial Rights Transfer Date field values can be changed any time prior to transfer completion by the Member who created the TOS/TOB transaction. a flow TOS/TOB will ignore any Sale Date entered and use the Transfer Date. The TOS batch confirmation transaction will be used to confirm the TOS/TOB Combo transaction. The transfer can be canceled any time prior to transfer completion by the Member that created the transaction. The old or new Servicer/Investor may reject the transfer by MIN. the beneficial rights transfer does not have to be confirmed separately. see the MERS® System Reports Handbook: Canceled Transfer of Beneficial Rights Report Canceled Transfer of Servicing Rights Report Current Investor Changes for Pending Transfer of Servicing Rights Report Expired Transfer of Beneficial Rights Report TOS/TOB Combination • 101 MERS® System Procedures Manual – Release 23. and Interim Funder receive a Physical Transfer of Servicing Rights Report. Document Custodian. or 31 calendar days after the servicing rights transfer creation date if the servicing rights Transfer Date is retroactive) For MINs in a TOS/TOB Combo transaction where the transaction is canceled. For a detailed description of each report. Subservicer. The completed TOS will remove Warehouse Gestation Lender interests from the MINs. The MERS System will cancel the remaining MINs in a TOS/TOB Combo transaction on the transfer deletion date (31 calendar days after the servicing rights Transfer Date. the loan status on MERS System reflects an overdue status. TOS/TOB Combo transactions will be recorded on the Transfer of Servicing Reports. The current and new Servicer. The completed TOS will remove Property Preservation Company Associated Members from the MINs. the system will automatically reverse the servicing rights transferred at the Sale Date. The TOS/TOB transaction will not allow the party named in the new Servicer/Investor field to be an Option 1 Investor. Two milestones will be added for each TOS/TOB transaction: one for the Servicing Rights Transfer. Investor. Both the beneficial rights and the servicing rights will transfer to the party named in the New Servicer/Investor field. • • • • • • • Reports The following reports are generated during the TOS/TOB Combination process.• • • If a transfer of servicing batch is not confirmed by the Transfer Date. and one for the Beneficial Rights transfer.0 – 12/10/2012 . All Associated Members on the MIN receive the MIN Milestone Report for Associated Members. 0 – 12/10/2012 TOS/TOB Combination • 102 . Expired Transfer of Servicing Rights Report Investor Removed by Option 1 Transfer of Beneficial Rights Report MIN Milestone Report for Associated Members MINs Deleted from Transfer of Beneficial Rights Report MINs Deleted from Pending Transfer of Servicing Rights Report Modified Batch – Transfer of Servicing Rights Overdue Transfer of Servicing Rights Report Pending Transfer of Servicing Rights Report Physical Transfer of Servicing Report Sale of Servicing Rights Report Summary of Transfer of Beneficial Rights Rejects Report Transfer of Beneficial Rights Rejects Report Transfer of Servicing Rejects Report MERS® System Procedures Manual – Release 23. see the Deactivation Reversals chapter.0 – 12/10/2012 . see Reregistration After Deactivation.Deactivations Overview This chapter explains the processes for deactivating a loan on the MERS® System. when servicing or beneficial rights are sold to a non-Member).g. it can be re-registered. only the investor can initiate an involuntary transfer deactivation. Impact The Default by Servicer process affects the following types of organizations: Although an involuntary transfer affects these parties. Default by Servicer Overview The Default by Servicer deactivation transaction is performed by the Investor.g. A deactivation can be reversed if it was performed in error. Loans are deactivated if the debt no longer exists (e. • • • • • Servicers Subservicers Investors Custodians Associated Members Deactivations • 103 MERS® System Procedures Manual – Release 23. Create Option 1 TOS (Default by Servicer) is performed by the agency investor. or if it is assigned out of MERS (e. If a loan that was deactivated because it was assigned out of MERS is later assigned back to MERS. at payoff). This occurs when the Investor takes servicing from the current Servicer because of reason of default and places the servicing with a different Member Servicer. This occurs when the Investor takes servicing and transfers it from the current Servicer because of reason of default and places the servicing with a non-Member Servicer. Reports The following reports are generated during the Default by Servicer deactivation process. The Investor forwards the assignment to the recorder and adheres to the assignment processing procedures described in this manual. The MERS® System sends a report to the Investor. 7. see the MERS® System Reports Handbook: * * * Deactivation Summary Report Default by Servicer—Servicing Transferred to Non-MERS Servicer Verification Report MIN Milestone Report for Associated Members MERS® System Procedures Manual – Release 23. 2. For a detailed description of each report. 8. The Default by Servicer deactivation appears on the MINlevel milestones. Subservicer. it can be re-registered (see Re-registration after Deactivation). 6. 5. Servicer. and Interim Funder (if applicable). Select Default by Servicer as the deactivation reason on the MERS® System. Custodian. 1. if applicable (9999999) 4.Business Procedure The investor performs the following procedures “Non-MERS Servicer” is listed on the Organization Lists that displays when you click on the Servicer field. Enter the Servicer’s information : • • • • Current Servicer Org ID Current Subservicer Org ID New Servicer Org ID (9999999) New Subservicer Org ID. If the loan is later assigned to a MERS® System Member.0 – 12/10/2012 Deactivations • 104 . The MERS® System updates the new Servicer and Subservicer if present. o If a loan that has been Assigned from MERS for Default or Bankruptcy is assigned back to MERS (e. • MOM and Non-MOM Loans You must obtain an assignment from MERS before initiating any foreclosure or bankruptcy action. Important: Each jurisdiction defines its own requirements as to what constitutes the initiation of a foreclosure. see Reregistration after Deactivation. and records the assignment promptly at the Servicer’s expense. it is incumbent upon the member and its counsel to determine what the particular jurisdictional requirements are for the state (and county) where a MERS-mortgaged loan is to be foreclosed and. you must re-register it. If MERS is the mortgagee of record.0 – 12/10/2012 Deactivations • 105 .Assigned from MERS for Default or Bankruptcy option.Foreclosure and Bankruptcy Overview The MERS® System Foreclosure process is governed by the following rules: • The investor determines whether foreclosure proceedings are to be conducted in the name of the Servicer or another party. given those requirements. the MERS® System Member servicing the loan obtains (through its current MERS Corporate Resolution) an Assignment From MERS to the entity selected by the Investor or Servicer. The following foreclosure options apply to MOM and Non-MOM loans: • Report the foreclosure activity on the MERS® System by choosing the Deactivated . because it reinstates). Therefore. MERS® System Procedures Manual – Release 23. o If a loan that has been Assigned from MERS for Default or Bankruptcy is not assigned back to MERS.g. ensure that MERS has assigned its interests in the mortgage or deed of trust before the foreclosure is initiated. servicer MUST execute an assignment from MERS prior to filing the Proof of Claim or Motion for Relief from Stay. The Deactivate-Assigned from MERS for Default or Bankruptcy transaction needs to be completed within five calendar days of filing. use the Foreclosure Status Reset option to place the loan in an active (not in foreclosure) status.0 – 12/10/2012 Deactivations • 106 . you will need to reverse the deactivation (see Deactivation Reversals). use the Foreclosure Complete option to deactivate the loan on the MERS® System. MERS® System Procedures Manual – Release 23. where foreclosure was initiated prior to the Rule 8 change in July 2011: o If the reasons for foreclosure are resolved and the loan reinstates. use the Reinstated or Modified Option 2 option to reflect that the pending foreclosure has stopped and the loan has reinstated. iRegistration option. If borrower files Bankruptcy and servicer chooses to file a Proof of Claim or Motion for Relief from Stay. • For loans in a Pending Option 2 foreclosure status. see Paid in Full. o If the Deactivated .Assigned from MERS for Default or Bankruptcy status was entered in error. (For loans sold to a third party. o If the foreclosure is completed. • iRegistration Loans The following foreclosure options apply to iRegistration loans: • Report the foreclosure activity on the MERS® System by choosing the Foreclosure Pending (Option 3).but you want to track it on the MERS® System. see iRegistration after Deactivation.) o If the Foreclosure Pending Option 2 status was entered in error. • If borrower files Bankruptcy and the servicer chooses not to file a Proof of Claim or Motion for Relief from Stay MIN may stay in an active status. use the Foreclosure Status Reset option to place the loan in an active (not in foreclosure) status.0 – 12/10/2012 . see Deactivation Reversals. • • Foreclosure and MIN Deactivation A MIN that is deactivated by a foreclosure complete cannot be reactivated. and audit history.) If the Foreclosure Pending Option 3 status was entered in error.Assigned from MERS for Default or Bankruptcy Note: a Foreclosure Complete deactivation also can be cascaded to the MERS® System from the MERS® eRegistry when the eNote is charged off. The foreclosure options that do not cause the loan to be deactivated are listed below: • • • Foreclosure Pending (Option 3). see Paid in Full. use the Reinstated or Modified (Option 3). This option also can be used to reset the foreclosure status for an iRegistration in Reinstated or Modified Option 3 status if it is assigned to MERS and needs to be converted to a Non-MOM. use the Foreclosure Complete option to deactivate the loan on the MERS® System. The foreclosure options that cause MIN deactivation are: • • Foreclosure complete Deactivated . iRegistration option to reflect that the pending foreclosure has stopped and the loan has reinstated. iRegistration Reinstated or modified (Option 2) Impact This process has potential impact to the following types of organizations: • • Servicers Subservicers Deactivations • 107 MERS® System Procedures Manual – Release 23.• If the reasons for foreclosure are resolved and the loan reinstates. (For loans sold to a third party. but the deactivation can be reversed if it was performed in error. iRegistration. because an iRegistration cannot be converted while it is in Reinstated or Modified Option 3 status. milestones. Reinstated or Modified (Option 3). This transaction will appear as “Foreclosure Complete – eReg” on reports. If the foreclosure is completed. • • • Investors Trustees Associated Members Business Procedure 1. The investor determines whether foreclosure proceedings are conducted in the name of the Servicer, or a different party designated by the investor. 2. If MERS is the mortgagee of record, the Servicer executes an Assignment From MERS before initiating the foreclosure, and promptly sends it for recording. 3. The Servicer updates the MERS® System to indicate that a foreclosure is pending when the Servicer’s attorney performs the first legal action. 4. If the default is cured, the Servicer updates the MERS System ® to reflect the reinstatement/modification (optional for loans in Deactivated – Assigned from MERS for Default or Bankruptcy status unless they are assigned back to MERS). 5. If the loan is in a Foreclosure Pending status on the MERS® System, the Servicer deactivates the loan on the MERS® System once it has liquidated the loan on its servicing system (at completion of the foreclosure sale or at the end of the redemption period). 6. The Servicer or Subservicer may insert a Property Preservation Company Org ID, or the Property Preservation Company may insert itself, on the loan even if the loan is in Deactivated-Assigned from MERS for Default or Bankruptcy or Foreclosure Complete status. Reports The following reports are generated during the foreclosure process. For a detailed description of each report, see the MERS® System Reports Handbook: * * * Foreclosure Verification Report Foreclosure Reject Report Past Due Foreclosure Terminations Report Deactivations • 108 MERS® System Procedures Manual – Release 23.0 – 12/10/2012 * * Deactivation Summary Report MIN Milestone Report for Associated Members Paid in Full (includes Short Sales, Deeds in Lieu, and Charge Offs not associated with a foreclosure completion) Overview A Paid in Full deactivation is used to deactivate loans when the Servicer accepts payoff funds and/or records a lien release or satisfaction. This also includes short sales, deeds-in-lieu, and charge-offs not associated with a foreclosure completion. • • For example, if you write off the last $100 of a loan and release the lien, it is considered Paid in Full. If you accept a Deed in Lieu of Foreclosure, use a Paid in Full deactivation even though no lien release or satisfaction has been recorded, because the lien is extinguished by the new Deed. If the lien remains valid even though your accounting shows the loan as charged off, no deactivation needs to occur on the MERS® System. The loan remains active on the MERS® System until it is either satisfied on sale of the property, or extinguished by the recording of a new Deed. • When the Servicer deactivates a loan, the loan status changes to inactive, and the current date is set as the deactivation date. Loans which are paid in full cannot be reactivated. The deactivation can be reversed if it was performed in error. Note: a Paid in Full deactivation also can be cascaded to the MERS® System from the MERS® eRegistry when the eNote is paid off. This transaction will appear as “Paid Off – eReg” on reports, milestones, and audit history. Impact This process affects the following types of organizations: • Servicers MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Deactivations • 109 • Subservicers • Investors Associated Members Business Procedure—Paid in Full Only the loan Servicer or Subservicer can enter a paid in full deactivation. 1. The Servicer or Subservicer receives payment in full. 2. The Servicer or Subservicer processes a deactivation on the MERS® System indicating the loan has been paid in full. 3. The paid in full deactivation appears on the MIN-level milestones. 4. The Servicer or Subservicer prepares and records the lien release. • For MOM and Non-MOM loans, MERS must be named as the current mortgagee on the lien release documents, and the MIN and SIS telephone number must be included on the documents as described in the Lien Release Processing Standards. 5. If applicable, the Member is also responsible for notifying the MERS® System that a mortgage previously reported as paid in full has not been paid in full by performing a reversal on the MERS® System. Reports The Paid in Full process uses the following reports. For a detailed description of each report, see the MERS® System Reports Handbook: * * * * Paid in Full Verifications Report Payoff Reject Report Deactivation Summary Report MIN Milestone Report for Associated Members MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Deactivations • 110 Transfer to Non-MERS Status Overview A Transfer to Non-MERS Status deactivation is used to deactivate a loan when it is sold to a Servicer who is not a member of the MERS® System, when a loan where MERS is the mortgagee of record is assigned out of MERS, or when an iRegistration will no longer be tracked on the MERS® System. For loans where MERS is the mortgagee of record, the Servicer must prepare and record an assignment from MERS to the new Servicer or Investor at its own expense. This deactivation should also be used if the lien has been extinguished but you still intend to collect on the now unsecured note; because the lien has been extinguished, no assignment is recorded, but the loan must be deactivated on the MERS® System. Enter 9999999 for the New Servicer Org ID. An example of this might be a second lien extinguished as a result of a foreclosure completed on the first lien for that property. Impact This process affects the following types of organizations: • Servicers • Subservicers • Investors • Associated Members Only the loan Servicer or Subservicer can enter a Transfer to Non-MERS Status deactivation. The Investor can initiate this transaction through instructions to MERSCORP Holdings Offices. The Transfer to Non-MERS Status transaction must be ® processed on the MERS System within five calendar days of the event that caused the deactivation. Business Procedure—Transfer to Non-MERS Status 1. The Servicer or Subservicer processes a deactivation on the MERS® System by selecting the Transfer to Non-MERS Status option and entering the following information: • Current Servicer Org ID • New Servicer Org ID (9999999) 2. The Transfer to Non-MERS Status deactivation appears on the MIN-level milestones. 3. The Servicer or Subservicer prepares the assignment at its own expense. MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Deactivations • 111 see the MERS® System Reports Handbook: * * * * Transfer to Non-MERS Status Verifications Report Transfer to Non-MERS Status Reject Report Deactivation Summary Report MIN Milestone Report for Associated Members MERS® System Procedures Manual – Release 23. For a detailed description of each report.4. 5.0 – 12/10/2012 Deactivations • 112 . Reports The Transfer to Non-MERS Status process uses the following reports. If the loan is later assigned to MERS. If the loan is later assigned to a MERS® System Member who wants to track it on the MERS® System. it can be re-registered (see Re-registration after Deactivation). The Servicer or Subservicer forwards the assignment to the county recorder. it can be re-registered as an iRegistration (see iRegistration after Deactivation). Deactivation Reversals Overview If a MIN is deactivated in error, the Servicer must reverse its inactive status using the Deactivation Reversal transaction. The deactivation cannot be reversed if an assignment has been sent or recorded removing MERS as the mortgagee of record. However, such a loan may be re-registered if it is assigned back to MERS; see Re-registration after Deactivation. The deactivation also cannot be reversed on the MERS® System if it was cascaded from the MERS® eRegistry. You would need to reverse the deactivation on the MERS® eRegistry, cascading the deactivation reversal to the MERS® System. The reversal process involves: • • Verify the loan information is current and accurate Process the reversal. If information on the MIN is incorrect or out of date, the Servicer must correct it in MIN Information after processing the reversal. Impact The reversal process has potential impact on the following types of organizations: • • • • Servicers Subservicers Investors Associated Members MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Deactivation Reversals • 113 Business Procedure 1. Verify that the deactivation can be reversed. 2. Access Reversals, then Deactivation, in MERS® OnLine. 3. Enter the MIN. 4. Submit the reversal transaction. 5. If any corrections need to be made to the loan information, make the changes in MIN Information. Reports There are no reports associated with the reversal process. MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Deactivation Reversals • 114 Modification Agreements Overview You do not need to report Modification Agreement information to the MERS® System except for Consolidation Extension and Modification Agreements (CEMAs) and construction loans. However, when a loan currently registered on the MERS® System is modified, you must place the existing MIN (and SIS number for MOM and Non-MOM loans) on the Modification Agreement prior to recordation. When a loan has been modified before being registered on the MERS® System, you should: • Place the MIN from the security instrument (and SIS number for MOM and Non-MOM loans) on the Modification Agreement prior to recordation. • Register the loan on the MERS® System using the Note Date and Note Amount from the original note. When assigning a loan to MERS: • Assign the existing loan to MERS with a new MIN. • Place the new MIN and SIS number on the Modification Agreement prior to recordation. • Register the new MIN on the MERS® System using the Note Date and Note Amount from the original note. Impact The Modification Agreement process affects the following types of organizations: • Servicers • Subservicers • Originators • Third-party originators • Investors • Associated Members MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Modification Agreements • 115 Business Procedure When the existing loan is a MERS® System-registered loan: 1. The Servicer places the existing MIN (and SIS number for loans with MERS as mortgagee) on the Modification Agreement and other applicable documents, and sends the documents for recording. When assigning a loan to MERS: 1. The existing loan is assigned to MERS with a new MIN. 2. The Lender/Servicer places the new MIN and the SIS number on the assignment, Modification Agreement, and other applicable documents prior to recordation. 3. The Lender/Servicer prepares and records the assignment, Modification Agreement, and other applicable documents. 4. The Lender/Servicer registers the MIN using the Note Date and Amount from the original loan. Reports The following reports are generated during the modification process. For a detailed description of each report, see the MERS® System Reports Handbook: * MIN Milestone Report for Associated Members MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Modification Agreements • 116 and Modification Agreement (CEMA) • 117 . The consolidating lender generates a new MIN and places the new MIN and the SIS number on the Modification Agreement prior to recordation. Extension. When the existing loan is currently registered on the MERS® System. a CEMA or MECA is processed either as a deactivation and a new registration. This practice is predominantly found in New York. • MERS® System Procedures Manual – Release 23.Consolidation. The two parties may be the same or different entities. and Modification Agreement (CEMA) or Modification. Extension. and Modification Agreement (CEMA) Overview If state law requires a lender to pay taxes only on additional funding of an existing loan or a new loan. depending on whether the consolidating Lender and the current Servicer are the same entity. and the current Servicer and the new Lender are different: • • The current Servicer submits a deactivation paid in full status on the old MIN. The processing of a CEMA or MECA has two parties: the current Servicer (the party that currently services the existing mortgage) and the new consolidating lender (the party providing the end financing). Extension. The consolidating lender registers the new MIN on the MERS® System using the original Note Date.0 – 12/10/2012Consolidation. Extension. On the MERS® System. and entering the Modification Agreement information including Modification Note Date and Modification Agreement Note Amount in the Modification Agreement tab at Registration. or as a MIN update. the lender may choose a Consolidation. and Consolidation Agreement (MECA) to consolidate or extend the term of an existing loan with or without additional funding to save the taxes associated with refinancing. original Note Amount. • The Consolidating Lender registers the new MIN on the MERS® System and includes the Modification Agreement Note Date and Amount. Impact The CEMA process affects the following types of organizations: • • • Servicers Subservicers Originators MERS® System Procedures Manual – Release 23. The consolidating lender places the existing MIN and the SIS number on the Modification Agreement prior to recordation. • The Consolidating Lender (who may or may not be the current Servicer) places the new MIN and the SIS number on the Modification Agreement prior to recordation. adding the Modification Note Date and Amount on the MERS® System. When the existing loan is currently registered on the MERS® System and the current Servicer and the new Lender are the same entities: • The current Servicer/Lender places the existing MIN and the SIS number on the Modification Agreement prior to recordation. • If a recorder’s office or title insurer requests any assignment(s) to show continuity in the chain of title for purposes of the CEMA. please contact the MERSCORP Holdings Law dept.org. and Modification Agreement (CEMA) • 118 .OR (if both parties agree) • • The current Servicer transfers the loan to the consolidating lender on the MERS® System. at
[email protected] – 12/10/2012Consolidation. Extension. The current Servicer of the loan updates the existing MIN. • If the existing loan is not currently registered on the MERS® System: • The current Servicer places the new MIN and the SIS number on the assignment prior to recordation. The current Servicer transfers the loan to the consolidating lender on the MERS® System. The new Servicer prepares and records a Modification Agreement. The Lender or new Servicer registers the new MIN. and the current Servicer and the Consolidating Lender are different: 1. 2. including Modification Note Date and Modification Agreement Note Amount.• • • Third-party originators Investor Associated Members Business Procedure When the existing loan is currently registered on the MERS® System. including the new MIN (and the SIS number for MOM and Non-MOM loans). The current Servicer deactivates the old MIN as a paid in full. using the original Note Date. 2. on the MERS® System. Extension. original Note Amount. OR (if both parties agree) 1. 3. The new Servicer enters the Modification Agreement information. The consolidating lender generates a new MIN and places it on the Modification Agreement and other applicable documents prior to recordation. and entering the Modification Agreement information including Modification Note Date and Modification Agreement Note Amount on the modification agreement tab at Registration. 4. placing the existing MIN on the Modification Agreement and other applicable documents prior to recordation. and the current Servicer and new Lender are the same: MERS® System Procedures Manual – Release 23. 3. and Modification Agreement (CEMA) • 119 . The new Servicer confirms the transfer. 4. When the existing loan is currently registered on the MERS® System.0 – 12/10/2012Consolidation. The consolidating lender prepares and records the Modification Agreement. The consolidating lender or new Servicer registers the MIN within seven calendar days of the assignment date. see the MERS® System Reports Handbook: * * * Deactivation Summary Report MIN Milestone Report for Associated Members Maintenance Verification Report MERS® System Procedures Manual – Release 23. Modification Agreement information. placing the existing MIN and SIS number on the Modification Agreement and other applicable documents prior to recordation. Extension. and Modification Agreement (CEMA) • 120 . 2. Reports The following reports are generated during the CEMA process. The current Servicer prepares and records an assignment to MERS of the existing loan with a new MIN. When assigning a loan to MERS: 1. using the original Note Date and Original Note Amount from the existing loan at Registration. 2. or as a MIN Update after Registration. placing the MIN and SIS number on the assignment prior to recordation. The consolidating lender (who may or may not be the current Servicer) prepares and records a Modification Agreement. including the Modification Agreement Note Date and Modification Agreement Note Amount (as well as any prior assignment and modification details). 3. For a detailed description of each report. 4. or via a batch process. either at Registration. placing the new MIN and SIS number on the Modification Agreement and other applicable documents prior to recordation.0 – 12/10/2012Consolidation.1. The Servicer adds the Modification Agreement Note Date and Modification Agreement Note Amount to the existing MIN using the Mod Agree option on the MIN Information menu. The consolidating Lender/Servicer prepares and records a Modification Agreement. The date the assumption information is entered on the MERS® System will be reflected in the MIN-level milestones. Impact The Assumption of Security Instrument process affects the following types of organizations: • • • • Servicers Subservicers Investors Associated Members MERS® System Procedures Manual – Release 23. When entering a mortgage assumption. When an assumption occurs.0 – 12/10/2012 Assumption of Mortgage • 121 . Interim borrower(s) are not tracked. The assumption date is not captured on the MERS® System. An existing borrower is removed from the loan obligation The Servicer or Subservicer is responsible for entering the new borrower information on the system. A new borrower is added to the existing loan obligation.Assumption of Mortgage Overview A mortgage debt is assumed when the following occurs: • • • A new borrower assumes the outstanding mortgage debt. you need: • • • MIN New borrower name(s) New borrower SSN(s) Original borrower(s) information is needed to execute a lien release and remains in the system for the life of the loan. the new borrowers become the current borrowers. the MERS® System copies the current borrower information into the original borrower fields 4. If there is no information for the original borrower. Enter the MIN for the mortgage being assumed Only information regarding the original borrower and the current borrower is stored. Trust. Set the Owner Occupied flag.0 – 12/10/2012 Assumption of Mortgage • 122 .Business Procedure 1. Reports The following Assumption of Mortgage reports are available on the MERS® System. The assumption appears on the MIN-level milestones. Select the Assumption function from the MERS® OnLine main menu 2. Enter the information into the current borrower information fields for all borrowers remaining after the assumption: • Borrower Name: o Corporate Name (Business. enter 111111111 for SSN. 6. see the MERS® System Reports Handbook: * * * Assumption Verification Report Assumption Rejects/Warnings Report MIN Milestone Report for Associated Members MERS® System Procedures Manual – Release 23. • Social security number or tax ID (required for primary borrower) Must be a valid social security number (only exception is 111111111 for a foreign national with no SSN) 5. or other non-individual) OR o First name o Middle name o Last name o Name Suffix For foreign nationals with neither a SSN nor a Tax ID. 3. Interim borrowers are not tracked. For a detailed description of each report. Property Preservation contacts appear on the Member Summary available from the Org ID hyperlink available on the MERS® Link MIN Summary and the MERS® OnLine MIN Summary for NonRights holders.0 – 12/10/2012 Property Preservation • 123 . Property Preservation Company Org IDs may be updated when the MIN is active or when it is in Deactivated-Assigned from MERS for Default or Bankruptcy or Foreclosure Complete status. TOS/TOB Combo.Property Preservation Overview Servicers use property preservation companies to maintain and manage properties.. by TOS.g. Once reflected on the MIN as an Associated Member. and appears in the MERS® OnLine and MERS® Link MIN Summaries for that MIN. Members with a Property Preservation Company Line of Business may insert or delete their Org ID as Property Preservation Company on any MIN on which they have a Property Preservation Company Relationship with the Servicer or Subservicer. Transfer to Non-MERS Status) all Property Preservation Company Org IDs are removed from the MIN. and up to four Property Preservation Companies as Associated Members on each MIN. the Property Preservation Company receives all Associated Member reports. Whenever the Servicer on a MIN is changed (e. each Member can identify one or more Property Preservation contacts for their organization. MERS® System Procedures Manual – Release 23. has view-only access to loan details. Some municipalities have agreed to use MERS® Link to access these contacts in lieu of requiring Members maintaining local properties to maintain property preservation contact information on a local database for each property. Other Members and MERS® Link Subscribers use the MERS® System to find and contact the property preservation company and/or contact for a property. Subservicer. Servicer. 4. for each Member. 3. 2. as long as the loan is in Active. MERS® System Procedures Manual – Release 23. Servicer or Subservicer may insert a Property Preservation Company on its loans regardless of whether a relationship has been set up. 5. 6. or Foreclosure Complete status. Servicer or Subservicer may create a Relationship to a Property Preservation Company. Property Preservation contacts are displayed on the MERS® Link Member Summary. and on the MERS® OnLine Member Summary.0 – 12/10/2012 Property Preservation • 124 . DeactivatedAssigned from MERS for Default or Bankruptcy. Property Preservation Company may insert or remove itself on any loan for a Servicer or Subservicer for which they are reflected in a Property Preservation Company relationship if the loan is in Active. Any Member can specify up to four Property Preservation Company Org IDs in their Registration Default Settings so they will be included by default as Associated Members on all loans registered in MERS® OnLine.Impact Property Preservation processing affects the following types of organizations: • • • • Servicers Subservicers MERS® Link Subscribers Municipalities Business Procedure 1. to allow that company to insert or remove itself as a Property Preservation Company on that Servicer or Subservicer’s loans. or Foreclosure Complete status. using the Member Information Relationships page in MERS® OnLine. Deactivated-Assigned from MERS for Default or Bankruptcy. and Property Preservation Company each create one or more Property Preservation contacts using the Member Information Contacts page in MERS® OnLine. Servicer or Subservicer may update Property Preservation Company named on MIN in Active. Property Preservation Company receives all Associated Member reports for each MIN on which it is reflected as a Property Preservation Company. Deactivated-Assigned from MERS for Default or Bankruptcy. see the MERS® System Reports Handbook: MIN Milestone Report for Associated Members Change Notification Report Maintenance Verification Report MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Property Preservation • 125 . 8.7. 9. Property Preservation Company appears in the MERS® Link and MERS® OnLine MIN Summaries for the loan. Reports The following reports are available on the MERS® System for Property Preservation Companies. 10. or Foreclosure Complete status. with an Org ID hyperlink to the Property Preservation company’s Member Summary on the MERS® Link MIN Summary and the MERS® OnLine MIN Summary for non-rightsholders. For a detailed description of each report. Property Preservation Company may view all information for that loan except Social Security Numbers and Tax Identification Numbers. and receives the Maintenance Verification report if it inserts or removes itself on a MIN. Once reflected on the loan. m. Reports can also be retrieved through the File Transfer Protocol (FTP) process.Reporting Overview MERSCORP Holdings prices transactions on the last business day of the month. This will allow you to develop one common program to process this file. The MERS® System maintains reports generated from the previous day’s activity. and eliminate the need for a separate program for each report data file. See the MERS® Integration Handbook Volume II for the header information. The reports reflect the previous days' processing and are not real time ad hoc reports. You can view on-line or print your formatted reports from MERS® OnLine. and on-request reports. and makes them available to you on-line for thirty calendar days. If you have written a program to retrieve the report data files generated by the MERS® System. • Tab-delimited text files can be imported into software applications your company supports for further manipulation.0 – 12/10/2012 Reporting • 126 . To verify that your automated process has been successful. Reports reflect updates submitted ® to the MERS System prior to 10 p. See the MERS® Integration Handbook Volume II for detailed instructions. The MERS® System provides scheduled monthly reports. and to assist in MERS® System Procedures Manual – Release 23. • PDF files can be viewed or printed using Adobe Reader. The MERS® System provides a standard set of reports that you can access electronically. a consolidated report data file for selected daily transactions is available. daily activity-based exception and confirmation reports. which can then be retrieved. The twocharacter report mnemonic for the monthly report is LD. The MERS® System places report files in each Member’s directory at the conclusion of each processing cycle. Eastern Time the previous business day. We suggest that you implement a procedure for downloading your reports at least once a week and storing them until they are no longer needed or until after reconciliation of the data with your internal systems. As your business grows. Users wishing to download documents from the MERS Members Only website will need to have appropriate credentials. you may determine that your organization does not need certain optional reports. or the Optional Reports Quick Reference Guide. available on the Members website at https://members. As each company has its own reconciliation and loan accountability process.recovery if your automated process is interrupted. while others are optional. Custom reports are also available. Contact the MERSCORP Holdings Help Desk to request login credentials for the website or for additional information. and more MINs are registered. Impact The Reporting process affects the following types of organizations: • • • • • • • • • Servicers Subservicers Originators Third-party originators Interim funding organizations Investors Custodians Associated Members MERSCORP Holdings. Many of the reports generated by the MERS® System are mandatory. the MERS® System also produces the List of Reports Produced. consisting of your MERS Org ID and MERS® OnLine User ID and Password.org. Inc.mersinc. to access the information. The MERS® System provides the ability to select which optional reports you receive. your reports will increase in size. Offices MERS® System Procedures Manual – Release 23. More specific instructions can be found in the MERS® OnLine User Guide.0 – 12/10/2012 Reporting • 127 . Just download the zipped format and unzip it to view the report. 2. 6. reports are available only in zipped formats. See the MERS® Integration Handbook Volume II for information on using other methods to retrieve report files. Review the report and reconcile with your internal systems. Select the day for which you want to view a report. 3. Select Reports from the MERS® OnLine main menu Reports generated by the ® MERS System are available from the previous six reporting cycles. from the Reports menu. and enables you to select parameters to restrict the search criteria. 4. Additional reports are available for a fee. The Portfolio Analysis Report is available free of charge for the first two report requests per month. and rejects. warnings. 7. After 30 calendar days. and in zip format for 30 days. Contact the MERSCORP Holdings Help Desk at (888) 680-6377 for earlier reports. print. You can also use a system-to-system method to retrieve your reports. reports will be archived. Correct errors. When you request a report through MERS® OnLine. you will need to contact the MERSCORP Holdings Help Desk if you need to retrieve one of these archived reports. After six processing days. and there will be a fee. it will display the number of reports your organization has requested in the current month. You can request this report via the MERS® OnLine application. It will alert you if you’ve reached MERS® System Procedures Manual – Release 23.Business Procedure – Retrieving Reports To retrieve reports in MERS® OnLine: 1. Select the particular report you want to view. Resolve and resubmit rejected transactions to the MERS® System.0 – 12/10/2012 Reporting • 128 . or save the report 5. View. Business Procedure – Requesting a Portfolio Analysis Report The Portfolio Analysis Report is an on-demand report that shows extensive information about the MINs requested. At least one option must be chosen when requesting your report. This date. If you request a subsequent report. the default setting is Detail. If neither option is chosen. Note and Registration Date Ranges • For On Request Portfolio Analysis Reports. Report Medium • You have the option to receive your Portfolio Analysis Report in report form or a data file or both. you have the ability to include only default fields. however. cannot be in the past or greater than sixty days from the current date. You can proceed with your request to generate another report or cancel it. you are provided with the following options: Report Schedule capability allows you to choose when the report will be generated. When selecting detail criteria. and must be a valid MERS® System processing date. or choose other fields to include on the report. Reporting • 129 MERS® System Procedures Manual – Release 23.the limit of free reports and will be charged for subsequent reports in that month. and the Registration from and through date fields to designate a specific range. The report confirmation page will show the specific fields you have selected. Below are the available frequency options: • • • Every Month-end – last processing day of the month Every Quarter-end – last processing day of the quarter On Request – the date you want the report to be generated. When requesting the Portfolio Analysis Report. but the previous report has not yet generated.0 – 12/10/2012 . a Pending Request message will display listing the date the report is scheduled to run. you can enter data in the Note from and through date fields. Report Body (content) • You can request the data on the report to be shown in Summary or in a Detailed format. 0 – 12/10/2012 . pre-closing. On the report. and iRegistration MINs. paid in full. The LOBs you can choose from are limited to those already selected on your Member Information on the MERS® System. you will indicate the appropriate Line of Business (LOB). then a group of Fannie Mae MINs. Non-MOM. MIN status is displayed as I for iRegistration. you must choose to have the data further sorted either by MIN within a Member’s group of MINs or by Pool/Investor number within a Member. Y for MOM and N for Non-MOM. “Any” will select MOM. Group MINs • The MINs on the report will be grouped by the Line of Business you select on the “Group the Selected MINs by” field.g. active. For a detailed description of these reports. • Reports The following reports are associated with this procedure. Report Sort Criteria • When the Report Detail option is selected. you may want to show all MINs for which you are the Servicer. For example. You can also select which Organizations you want included on your report.). MIN Status and MIN MOM Values • You can select MINs with a MOM value of “MOM” or “Non-MOM” or “iRegistration” or “Any”. So you’d have a group of Freddie Mac MINs.• Select MINs To select the MINs to be included on the report. you can group the MINs for which you are Servicer by Investor. You can also select MINs with any MIN status or limit the report to MINs with certain MIN statuses (e. see the MERS® System Reports Handbook: Detail Portfolio Analysis Report (OB) Summary Portfolio Analysis Report (OC) Reporting • 130 MERS® System Procedures Manual – Release 23. etc. etc. Building on the above example. and broadcast messages generated by the MERSCORP Holdings Help Desk are sent to the Member’s email address. that for the same reason. All communication.0 – 12/10/2012 MERSCORP Holdings Mail Services • 131 . whether in the form of paper or funds.) All types of mail currently received and handled by Servicers continue to be the Servicer’s responsibility.MERSCORP Holdings Mail Services Overview Members must not use the MERS address as the return address for documents sent to be recorded. MERSCORP Holdings has established a mail facility as part of its operation. and for forwarding documents to the new servicer or subservicer if you have sold the loan and not completed the TOS transaction to reflect the transfer on the MERS® System. To address these situations and ensure that correspondence is promptly routed to the correct destination. Ensure that personnel assigned to manage the mailbox are given the appropriate password and trained to handle and distribute communication received. The MERSCORP Holdings Mail Center and Customer Service areas are responsible for the receipt. It is also possible. and scanning of physical mail documents into electronic images. The Member’s email address given to MERSCORP Holdings for official communications from MERSCORP Holdings is used to route the images to MERS® System Members. mail or service of process for iRegistration loans. MERS should never receive. hazard insurance companies and taxing authorities. MERS® System Procedures Manual – Release 23. MERS could receive funds intended for current Servicers or Subservicers. MERS frequently receives mail from organizations that search the county land records to identify the mortgagee(s) with an interest in property. You are responsible for notifying the MERSCORP Holdings Help Desk if this email address changes. and will not forward. As the mortgagee of record. but unlikely. handling. See Training Bulletin 2011-04 for subject line conventions. (For example. All mail. The MERS address should not be given directly to organizations that normally direct mail to the Servicer or Subservicer. You can also create email rules to automatically redistribute email to the appropriate persons or departments. is indexed to the appropriate MIN and images are routed electronically to the current Servicer or Subservicer for that MIN. mail images. Original documents are filed in a temporary storage area in the MERSCORP Holdings Mail Center. the following occurs: • You can create email rules to automatically redistribute email to the appropriate person or department.) Help Desk documents the date and time of this action in its tracking system. Mail is received by the MERSCORP Holdings Mail Center. 3. Mail is assigned an Image Control Number (ICN) and scanned by the MERSCORP Holdings Mail Center. Scanned images are transmitted to Help Desk for routing to the correct MERS® System Member. MERSCORP Holdings Mail Center performs a quality assurance review on all images to ensure clarity and legibility. Inc. Help Desk will: MERS® System Procedures Manual – Release 23. opened and prepared for electronic scanning. • If the document image cannot be associated with a MIN.0 – 12/10/2012 MERSCORP Holdings Mail Services • 132 . Offices Business Procedure 1. by Member’s email address. 5.Impact Document imaging and retrieval affects the following types of organizations: • • • Servicers Subservicers MERSCORP Holdings. (See Training Bulletin 201104 for subject line conventions. 6. 2. Contact the MERSCORP Holdings Help Desk whenever your document handling information changes. 4. If the document images are successfully matched to a MOM (MERS as Original Mortgagee) or Non-MOM (assigned to MERS) MIN. Document images are forwarded to the Subservicer if one exists on the MIN. Help Desk attempts to identify the current Servicer or Subservicer of the document image based on the information contained in the document or by using the MERS® System to index the MIN. otherwise to the Servicer. forwards the remittance plus any accompanying attachments to the MERS® System Member Servicer or Subservicer by overnight delivery. For items successfully routed to the current MERS® System Member Servicer or Subservicer. Block. • For funds. • For original mortgage documents. Help Desk also handles the disposition of the original mail document. or by overnight delivery at your expense. MERS® System Procedures Manual – Release 23. the Overnight Address and overnight account information from your Member Profile is used. Help Desk then ships the documents to the Member using the mailing instructions indicated in the profile. You can choose to have original mortgage documents delivered to you by regular mail. Parcel. and documents to whom the funds were sent. otherwise to the Servicer. Help Desk updates the date and time of this action in its tracking system. Help Desk accesses the Member’s profile in the MERS® System to determine how the Member has designated the documents be forwarded to its operation. MERSCORP Holdings Help Desk will research the county land records* *A fee may be assessed to the Member not meeting the MERS® System Quality Assurance Standards. and/or other identifying information (Lot. address.• Send broadcast email message (with “Member Notice: Unidentified Mail” in subject line) to all MERS® System Members with borrower name.0 – 12/10/2012 MERSCORP Holdings Mail Services • 133 . Original mortgage documents and funds are forwarded to the Subservicer if one exists on the MIN. Help Desk logs when the funds were received.) Contact the sender for further identifying information • If the above steps have been taken and the Servicer still hasn’t been identified. If you have chosen overnight mail. Please refer to Training Bulletin 2012-01 for details 7. etc. • • The Regular Address in your Member Profile is used for regular mail. • All other unclaimed paper mail is stored in its physical hard copy form for a period of 30 calendar days. MERS® System Procedures Manual – Release 23. Reports No reports are associated with this process.0 – 12/10/2012 MERSCORP Holdings Mail Services • 134 . At that point. all paper mail is destroyed. mail images. Broadcast bulletins regarding connectivity or system issues posted for MERS® System Members by email and OnLine broadcast message.MERSCORP Holdings Help Desk Overview The MERSCORP Holdings Help Desk serves as a point of contact for MERS® System Members in support of the following: All communication. and broadcast messages generated by the MERSCORP Holdings Help Desk are sent to each Member’s official communication from MERSCORP Holdings email address.org) and telephone Servicer Identification System (SIS) at 1888-679-MERS(6377) available to general public and Members to provide Servicer contact information and Investor name at the MIN level. 1-888-680MERS(6377). a browser-based application that provides you information regarding the current Servicer of a mortgage registered on the MERS® System. Online MERS® ServicerID (www. Faxback feature on SIS can confirm Servicer contact information and Investor name in writing. Monday through Friday. • • • • • The MERS® System Functional questions associated with mortgage banking Technical support The MERS® System connectivity Changes to your official communication from MERSCORP Holdings email address Other highlights of the MERSCORP Holdings Help Desk are: • Toll-free access to the Help Desk.mers-servicerid.0 – 12/10/2012 MERSCORP Holdings Help Desk • 135 . Ensure that personnel assigned to manage the mailbox are given the appropriate password and trained to handle and distribute communication received. Eastern Time. After hours technical support available for emergency technical issues.m. Real-time tracking system used for all open inquiries and issues to ensure timely resolution. • • • • • MERS® System Procedures Manual – Release 23.m. MERS® Link. 8 a. to 10 p. mersonline. MERSCORP Holdings Help Desk • 136 • • MERS® System Procedures Manual – Release 23. An interim status is provided to the Member at a predetermined frequency based on the following service levels. A Help Desk representative answers the call.org.• XML Inquiry and Batch Inquiry transactions provide information on loans matching search criteria entered using a system-to-system interface. • Impact The Customer Service/Help Desk impacts the following types of organizations: • • Members MERSCORP Holdings Offices Business Procedure—Help Desk • • • • Member calls the MERSCORP Holdings Help Desk at 1-888680-MERS(6377). If the Help Desk representative determines that further action is required: • The Help Desk representative coordinates the resolution of the problem with the appropriate MERSCORP Holdings area(s) and monitors the progress. Processing of system enhancement requests submitted from Members via the “Enhancement Request” option available on www. A record is opened in the tracking system One of the following occurs: • If the item is a general inquiry or training support issue and does not impact additional users or processing.org and members.0 – 12/10/2012 . and no further action is necessary.mersinc. the Help Desk representative resolves the problem or responds to the Member’s request. updates the tracking record. except for scheduled holidays Within 5 days Description Application Support—Severity 1 Application Support—Severity 2 Other problems—Severity 1 Other problems—Severity 2 Service Level 4 hours 8 hours 24 hours 48 hours ◊ ◊ The Help Desk representative confirms with the Member that resolution is acceptable. user can continue processing with minimal loss of efficiency or functionality Severity 4—User inquiry or problem that does not affect the user Service Level Immediately Within 2 hours Within 48 hours.mers-servicerid. The Help Desk representative verifies that all action taken has been documented and closes the record in the tracking system.Initiate Problem Resolution Description Severity 1—Significant problem affecting multiple users Severity 2—Significant problem affecting a single user Severity 3—Problem has reasonable circumvention.MERS® ServicerID • A MERS® System Member or a member of the public accesses MERS® ServicerID at www. MERSCORP Holdings Help Desk • 137 MERS® System Procedures Manual – Release 23. Business Procedure .org.0 – 12/10/2012 . borrower and/or property information. • If the MIN/SSN is on file but deactivated. Business Procedure . or FHA/VA/MI certificate. If the loan is an iRegistration. the system displays a disclaimer indicating the loan is registered on the MERS® System for informational purposes only. • • MERS® System Procedures Manual – Release 23. and MERS is not the mortgagee on this loan. If the MIN/SSN is on file and active.Servicer Identification System (SIS) • A MERS® System Member or a member of the general public calls the Servicer Identification System (SIS) at 1-888-679MERS(6377). and telephone number of the last known MERS® System Member Servicer. the system provides the name.0 – 12/10/2012 MERSCORP Holdings Help Desk • 138 . • • The borrower can access the name. the system provides the name.• User chooses to search by the MERS® System Mortgage Identification Number (MIN). city. city. the system indicates the Servicer/MIN is not on file. The SIS prompts the caller to enter a MERS® System Mortgage Identification Number (MIN) or the Social Security Number (SSN) of the primary borrower and property ZIP code (optional). state and telephone number of the current Servicer. the system indicates no loans matched the criteria entered. state. One of three scenarios occurs: • • If no loan matching those search criteria is found. city. One of three scenarios occurs: • If the MIN/SSN entered by the caller is not on file. and state of the current Investor (if disclosed) by providing more information. If the loan is an iRegistration. OR a MERS® System Member or MERS® Link Subscriber selects the MERS® Link Sign On tab on the corporate website. and Password to log in. If the information entered by the User does match a loan on file. and MERS is not the mortgagee on this loan. If the MIN/SSN is on file but deactivated. and telephone number of the last known Servicer. the system includes a disclaimer indicating the loan is registered on the MERS® System for informational purposes only. city. the system provides the name. User ID. city. The borrower can access the name. state.0 – 12/10/2012 . • • Prospective Members can also ® obtain general MERS System membership information through this faxback feature. MERS® Link prompts the user to enter one or more identifying characteristics on a loan. • • • Business Procedure—MERS® Link • Any MERS® System Member with access to MERS® OnLine selects the MERS® Link option on the MERS® OnLine Main Menu. and enters their Org ID. If the caller chooses the faxback option.• If the MIN/SSN is on file and active. the system provides the name. he or she is prompted to enter the 10-digit facsimile number. city. state and telephone number of the current Servicer. the system indicates that the MIN is not on file. The SIS sends the Servicer name. address and telephone number to the caller by facsimile using the number entered by the caller. and state of the current Investor by providing more information. the system provides a loan summary page MERSCORP Holdings Help Desk • 139 • • • MERS® System Procedures Manual – Release 23. One of two results occurs: • If the information entered by the User does not match any loan on file. N for MOM or Non-MOM) Owner Occupied indicator Servicer Org ID and Name Subservicer Org ID and Name. for larger volumes.0 – 12/10/2012 . unless the requester is not associated with the loan and the Investor has chosen not to disclose their contact information in proprietary applications MERSCORP Holdings Help Desk • 140 • MERS® System Procedures Manual – Release 23. The MERS® System returns a synchronous response containing the requested information for up to 20 loans matching those search criteria. the response contains.including Servicer. or borrower. information for the 20 loans registered most recently is returned. or Pre-Closing) MOM Indicator (Y for MOM loan. N for Non-MOM or iRegistration) iRegistration Indicator (Y for iRegistration. with an indicator that more than 20 loans matched the criteria in the request. property. except during scheduled maintenance windows. if present Investor Org ID and Name. • A MERS® System Member sends an XML Inquiry Request to the MERS® System. You may send up to 30 requests per minute. see Batch Inquiry on the next page. Investor (unless the Investor has chosen not to disclose their contact information in proprietary applications) and Property Preservation Company information. If more than 20 loans match the search criteria. requesting status or summary information for a specific MIN. Business Procedure—XML Inquiry XML Inquiry is available both during and outside normal processing hours. • For a status request. for each MIN: • • • • • • • • MIN Status (active. inactive. the response contains the same information included on the MIN Summary page in MERS® OnLine. or borrowers. • For a status request.• • Property Preservation Company Org ID and Name. MERSCORP Holdings Help Desk • 141 MERS® System Procedures Manual – Release 23. if present Investor Org ID and Name. the response contains. unless the requester is not associated with the loan and the Investor has chosen not to disclose their contact information in proprietary applications • • For a summary request. inactive. specific fields included depend on whether the requesting Member is associated with the MIN and whether the MIN has been archived. For more information about the XML MIN Inquiry transaction. for each MIN: • • • • • • • MIN Status (active. specific fields included depend on whether the requesting Member is associated with the MIN and whether the MIN has been archived. N for Non-MOM. Business Procedure—Batch Inquiry • A MERS® System Member sends a Batch Inquiry via flat file to the MERS® System. The MERS® System returns a flat file containing the requested information matching those search criteria. or I for iRegistration) Owner Occupied indicator Servicer Org ID and Name Subservicer Org ID and Name. see MERS® Integration Handbook Volume II. properties. or Pre-Closing) MOM Indicator (Y for MOM loan. if present For a summary request. the response contains the same information included on the MIN Summary page in MERS® OnLine.0 – 12/10/2012 . requesting status or summary information for one or more specific MINs. MERS® System Procedures Manual – Release 23. including the current parameters for maximum requests in the same file. see MERS® Integration Handbook Volume II.0 – 12/10/2012 MERSCORP Holdings Help Desk • 142 . Reports No reports are associated with this process.For more information about the Batch Inquiry transaction. MERS® System Procedures Manual – Release 23. to facilitate the processing of Member requests for new and updated CRs and the appointment of identified Member officers as SOs. the service provider for MERS. has established the CRMS. which are used to appoint authorized SOs from third-party vendors that perform services for Members Download of a Member’s CRs issued via the CRMS Quarterly attestation that each CR is up to date Request for a MERS Corporate Seal • • • New Members who will be servicing or subservicing MOM or non-MOM loans are given access to CRMS during their MERS® System integration. Through this appointment. a web-based application. SOs are empowered to perform limited actions in the name of MERS as the mortgagee of record.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 143 .Corporate Resolution Management System (CRMS) Overview An essential aspect of the MERS business model is the issuance of a MERS Corporate Resolution (“CR”) to Members who register loans on the MERS® System for which MERS is the mortgagee of record. MERSCORP Holdings. The CR appoints specified officers of the Member as MERS Signing Officers (“SOs”). The business functions supported by the CRMS include the following: • • • • Identification of a Member’s SO candidates Certification of SO candidates through an online examination Submission of Member requests for new and updated CRs appointing SOs Submission of Member requests for Signing Authority Agreements (“SAAs”). 4.0 – 12/10/2012 . Business Procedure . All fields are required. This email welcomes the Member to the CRMS. 3. but if it does appear. Corporate Resolution Management System (CRMS) • 144 • • MERS® System Procedures Manual – Release 23.Impact These processes have potential impact on all MERS Members who will service or sub-service loans.Initial Request for MERS Corporate Resolution During Integration. The PM logs on to the CRMS using the login credentials provided. it must exactly match what is listed on the CR. any request to approve an SO using a personal email address will be rejected First Name This will be printed on the CR. Once the Org ID is phased in: 1. 2. and the password is system-generated. The user name is the PM’s full email address. Members are phased in to the CRMS by their Business Integration Resource. The PM adds the following information for each officer of the Member organization for whom SO authorization is to be requested. The SO’s middle name does not need to appear on a document signed by the SO. The CRMS sends an automated email to the Member’s MERS® Project Manager (“PM”). and must exactly match the first name printed on any document to be signed as an SO Middle Name This will be printed on the CR. and provides the CRMS URL and the PM’s login credentials (user name and password). • Email Address This must be the unique business email address of that individual. The PM selects the “Create a New Corporate Resolution” link to display the Corporate Resolution page. and must exactly match the last name printed on any document to be signed as an SO Job Title This will not print on the CR Enter the title of the individual as an officer within the Member organization • 5. MERS® System Procedures Manual – Release 23. The username is the SO candidate’s full email address. • Last Name This will be printed on the CR. If the individual does not have a middle name. 6.Either middle name or initial is acceptable. 8. 7. The PM clicks the Submit for Approval button on the Corporate Resolution page to submit a request for a new CR. the Submit for Approval button appears on the PM’s Corporate Resolution page for that Org ID. select the NMN checkbox. and the initial password is system-generated. New SO candidates appear in Pending status unless they have previously been added to the CRMS for another Org ID. • The CRMS displays a pop-up window asking the PM to attest that every SO candidate being submitted with this request is a current officer of that organization.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 145 . their status on the PM’s Corporate Resolution page changes to Test Passed. Once all SO candidates are in Test Passed status. 9. The PM instructs the CRMS to notify all pending SO candidates to take the Certification Exam. When an SO candidate passes the Certification Exam. and generates an automated email to each identified SO candidate. This email provides the CRMS URL and the SO candidate’s login credentials (username and password). • The CRMS changes any identified SO candidates in Pending status to Notified status. The CRMS sends an automated email to the new SO candidate when instructed by the PM. each SO candidate must correctly answer at least eight (8) out of ten (10) randomly selected questions. This email welcomes the SO candidate to the CRMS. The certification process consists of reading the MERS Signing Officer Primer (“Primer”) and successfully completing the SO Certification Exam (“Exam”).MERS Signing Officer Certification Each SO candidate is required to complete a certification process before their PM can request that they be appointed as an SO. advising that MERS has approved the Member’s request by issuing a CR. and provides the Corporate Resolution Management System (CRMS) • 146 MERS® System Procedures Manual – Release 23. All information needed to answer the questions on the Exam is included in the Primer.0 – 12/10/2012 . the SO candidate must attest that they have read and understood the MERS® System Rules of Membership (“Rules”) and Procedures applicable to them. However. the CRMS sends an email to the PM advising that the request has been denied and explaining next steps. To pass the Exam. the PM must select No. 11. and is available immediately for the PM to download from CRMS. BCC’ing all SOs. and the CRMS submits the request to MERS for review. If all SO candidates listed are officers of that organization. • 10. Business Procedure .• If any SO candidate listed is not an officer of that organization. then return to the Corporate Resolution page. The CR that appoints the SOs is attached to that email. 1. before starting the Exam. as well as the Primer. If the request is rejected by MERS. and remove the SO candidates who are not officers of that organization before selecting the Submit for Approval button again. the CRMS sends an email to the PM. the PM selects Yes. If the request is approved by MERS. The user name is the SO candidate’s full email address. Once the SO candidate attests to all statements in the popup. the CRMS displays the Exam results. 4. The SO candidate logs on to the CRMS using the login credentials provided. 5. and that they understand if they do not pass the Exam within three (3) consecutive attempts they will become permanently ineligible to serve as an SO. 7. the SO must correctly answer at least eight (8) of the ten (10) randomly selected questions. The SO must answer each question. the SO candidate selects the “Click Here to take the Certification Exam” link. that they are a current officer of the Member organization. 3. they should X out of the window. 6.pdf format and the SO reads it. and the password is system-generated. The SO candidate selects the “Download the Primer” link from the Start page. that they will abide by the Rules and Procedures. 9. The Primer displays in . If they cannot attest because they are not an officer of the Member organization. If the SO candidate has failed the Exam on their first or second attempt: MERS® System Procedures Manual – Release 23. They can then read the Primer and Rules before selecting the “Click Here to take the Certification Exam” link again. 8. then click Next to proceed to the next question.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 147 . To pass the Exam. 10. The CRMS displays a pop-up window asking the SO candidate to attest that they have read and understood the Primer and the Rules. When the SO has answered all ten questions. the CRMS displays the first Exam question. If the SO candidate cannot attest to the statements in the pop-up window. 2. After reading the Primer. they should inform their PM so they can be removed from the list of SO candidates for that organization.CRMS URL and the SO candidate’s login credentials (user name and password). on the PM’s Corporate Resolution page. fifteen (15). An SO associated with multiple Org IDs need only take the Exam once annually in order to be certified across all Org IDs. Their status displays as Test Failed on the PM’s Corporate Resolution page. If the SO candidate has passed the Exam: • Any question they did not answer correctly is displayed with the answer they chose. and the date they passed the Exam will be displayed. The SO must re-take the Exam annually to maintain their certification. they may continue to serve as a PM although they are permanently ineligible to serve as an SO. The SO’s certification is valid for a period of one (1) year. If that SO is also a PM. The SO candidate’s status in the CRMS will change to Test Passed. • 11. and seven (7) calendar days prior to the expiration of their certification. The SO reviews the Primer to ensure their understanding of its contents. 12.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 148 . The SO is notified of the annual requirement to recertify via email thirty (30).• A message appears with the Exam results instructing the SO candidate that they may take the Exam again on the next calendar day. Their status displays as Ineligible on the PM’s Corporate Resolution page. • • • MERS® System Procedures Manual – Release 23. If the SO candidate has failed the Exam three consecutive times: • • • The message tells them they are permanently ineligible to serve as an SO. the CRMS does not allow the password to be changed or viewed by anyone other than that user.View Only Contacts The CRMS allows each Org ID or Vendor ID to be assigned a View Only Contact that may view the SO information (name. The CRMS sends an email to the View Only Contact for each Org ID/Vendor ID to which they were added. and view current and previous CRs issued via the CRMS. providing the following information: • Org ID(s) and/or Vendor ID(s) to be updated • View Only Contact Email Address • View Only Contact First. A user’s password for the CRMS must meet the following standards. email address. The View Only Contact logs into the CRMS using the login credentials provided 5. and will send a reset password email only to that user. including login credentials 4. but may not make any updates in CRMS. The View Only Contact is added to the CRMS 3.org requesting a View Only Contact be added to the CRMS. Corporate Resolution Management System (CRMS) • 149 MERS® System Procedures Manual – Release 23.Password Changes and Resets Each CRMS user (PM.Business Procedure . as well as current and previous CRs or SAAs issued via the CRMS. last test passed date. SO. The View Only contact may also be a PM and/or SO. and may change their password.0 – 12/10/2012 . Middle. The View Only contact may view SO information. and current status) on the Corporate Resolution page. job title. The View Only Contact is not able to edit or update any information in the CRMS. 1. The PM sends an email to helpdesk@mersinc. and/or View Only Contact) is responsible for maintaining their own password. Business Procedure . and Last Names 2. On first login. 2. To change your password when you are logged in: 1. To unlock the account. %) CRMS passwords do not expire. $#. 5. Select the “Forgot your password?” link from the login page. The CRMS sends an email to you with a strong password. MERS® System Procedures Manual – Release 23.• • • It must not be based on account name It must contain at least eight characters It must contain characters from at least three of the following four categories: o Uppercase alphabet characters (A–Z) o Lowercase alphabet characters (a–z) o Arabic numerals (0–9) o Non-alphanumeric characters (for example. A pop-up window displays with three fields that must be entered: • Old Password Enter your existing password • New Password Enter your new password • Confirm New Password Re-enter your new password 3. Select the “Change Password” link from the bottom of the Activities page. 3. To reset your password when you are not logged in: 1.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 150 . The CRMS displays a Forgot Password page. 2. Enter the old password and new password in the appropriate fields and select the “Change Password” button. change your password to one you will remember that meets CRMS password requirements. Enter your email address and click the Reset Password button. that username is automatically locked out. If a user fails to gain access to the CRMS in three (3) attempts. 4. The CRMS displays a pop-up window asking the SO candidate to attest that they have read and understood the Primer and the Rules. The SO candidate selects the “Download the Primer” link from the Start page. and that they understand if they do not pass the Exam within three (3) consecutive attempts they will become permanently ineligible to serve as an SO. they should inform their PM so they can be removed from the list of SO candidates for that organization. 1. Thirty days before an SO’s certification is due to expire: The CRMS changes the SO’s status from Test Passed to ReCertify • The CRMS sends an email to the SO notifying them that they must recertify in the next 30 days.org. 7. 2. that they will abide by the Rules and Procedures.pdf format. If they cannot attest because they are not an officer of the Member organization. they should X out of the window. After reading the Primer. 3. If the SO candidate cannot attest to the statements in the pop-up window. Business Procedure . They can then read the Primer and Rules before selecting the “Click Here to take the Certification Exam” link again. and the SO reads it. 6. 5.contact the MERSCORP Holdings Help Desk at 1-888-680-MERS (6377) or through email at
[email protected] Signing Officer Recertification Each SO is required to complete a recertification process annually to retain their authorization as an SO. 4. the SO candidate selects the “Click Here to take the Certification Exam” link. The recertification process consists of reading the current Primer and passing a new Exam. MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 151 • . that they are a current officer of the Member organization. The SO candidate logs on to the CRMS using their existing login credentials. The Primer displays in . Their status displays as Ineligible on the PM’s Corporate Resolution page. The certification applies across all Org IDs where the SO is named. 11. and the most recent date they passed the Exam is displayed. If the SO candidate has failed the Exam three consecutive times: • • • A message appears with the Exam results telling them they are permanently ineligible to serve as an SO. 9. then click Next to proceed to the next question. The CRMS sends a notification email to the SO and PM stating that the former SO’s authority to act as an SO is revoked. Their status in the CRMS displays as Test Passed. the SO must answer at least eight of the ten randomly selected questions correctly. If that SO is also a PM. on the PM’s Corporate Resolution page. If the SO candidate has failed the Exam on their first or second attempt: • • A message appears with the Exam results telling them they may take the Exam again on the next calendar day. To pass the Exam. the CRMS displays the first Exam question.8. the CRMS displays the Exam results. Once the SO candidate attests to all statements in the popup. The SO must answer each question. Their status in the CRMS remains ReCertify. • 12. If the SO candidate has passed the Exam: • Any question they did not answer correctly is displayed with the answer they chose. • • MERS® System Procedures Manual – Release 23. The SO should review the Primer to ensure their understanding of its content. When the SO has answered all ten questions. 10.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 152 . they may continue to serve as a PM although they are ineligible to serve as an SO. 2. The SO who allowed their certification to expire is no longer an authorized SO and may not sign or act in the name of MERS. PM clicks the Submit for Approval button to submit a request for an updated CR. PM receives notification from CRMS (copying the Legal Contact from the MERS® System) of SO expiration. the PM must attest that all remaining SOs are still officers of the Member organization. Removing a MERS Signing Officer from a CR If an SO leaves the Member organization. and for ensuring the CR remains current.Maintaining MERS Signing Officer Information The PM is responsible for maintaining name. or learns an authorized SO is no longer an officer of the Member organization. email address. the PM may add them back to the Corporate Resolution page and submit a Corporate Resolution Management System (CRMS) • 153 • • MERS® System Procedures Manual – Release 23. 1. or allows their certification to expire. PM clicks on the Edit icon for that SO entry on the CRMS Corporate Resolution page to display a pop-up window. ceases to be an officer of the Member organization. the PM must remove that individual from the Member’s Corporate Resolution page in the CRMS and then submit a request for approval of an updated CR. Pending approval of the updated CR: • Any SOs appearing on the Member’s current CR whose certification remains current may continue to serve as SOs for the Member while its request for an updated CR is pending.Business Procedure . and job title information for all SOs and SO candidates. and then clicks “Remove from this Corporate Resolution” to remove that SO entry. If the SO who allowed their certification to expire recertifies by passing the Exam. To submit. 3. 4.0 – 12/10/2012 . and is available immediately for the PM to download from CRMS.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 154 . When an SO’s name has changed. advising that MERS has approved the Member’s request for an updated CR. When the request is approved by MERS. If SO email address has changed: • SO receives email notification of change at both old and new addresses. 1. The updated CR is attached to that email. and/or email address of an authorized SO needs to be changed. the CRMS sends an email to the PM. 1. the PM must update the SO entry for that SO in the CRMS. advising that MERS has approved the Member’s request for an updated CR. Updating a MERS Signing Officer’s Information If an SO changes their name. edits the entry appropriately. Adding a MERS Signing Officer If a Member wishes to have additional officers appointed as SOs. or job title. but that individual will not be authorized as an SO until the request is approved and an updated CR is issued by MERS. PM learns the name. If SO name has changed. 5. The updated CR is attached to that email. BCC'ing all SOs. and chooses an update reason from the Reason dropdown. and is available immediately for the PM to download from CRMS. BCC’ing all SOs. PM clicks on the Edit icon for that SO entry to display a pop-up window. the PM must add an SO entry for the new SO candidate(s) and submit a request for approval of an updated CR via the CRMS. PM clicks Submit for Approval button to submit a request for an updated CR. The PM selects the Add Signing Officer button on the Corporate Resolution page to display a pop-up window. 4. email address. When the request for an updated CR is approved by MERS. the CRMS sends an email to the PM.request to MERS for an updated CR. the PM must also submit a request for an updated CR. 3. MERS® System Procedures Manual – Release 23. 5. 2. job title. The PM adds the following information for the officer for whom SO authorization is to be requested. select the NMN checkbox. it must exactly match what is listed on the CR.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 155 . • The CRMS changes the SO candidate from Pending status to Notified status.2. Last Name This will be printed on the CR. • Email Address This must be the unique business email address of that individual First Name This will be printed on the CR. All fields are required. MERS® System Procedures Manual – Release 23. and must exactly match the first name printed on any document to be signed as an SO Middle Name This will be printed on the CR. Enter the title of the individual as an officer within the Member organization • • • • 3. If the individual does not have a middle name. Either middle name or initial is acceptable. and generates an automated email providing the CRMS URL and the SO candidate’s login credentials (username and password). but if it does appear. The SO’s middle name does not need to appear on a document signed by the SO. 4. and must exactly match the last name printed on any document to be signed as an SO Job Title This will not print on the CR. The PM can notify the SO candidate individually via the CRMS by clicking the Edit icon for that SO candidate and selecting the Send Email button in the pop-up window. The new SO candidate appears in Pending status unless they have previously been added to the CRMS for another Org ID. Business Procedure . and the initial password is system-generated.Updating the MERS® Project Manager To change a PM.org to request the change. the Submit for Approval button appears on the PM’s Corporate Resolution page for that Org ID. After the PM is updated in the CRMS: • The CRMS sends an email to the new PM welcoming them to the CRMS and providing them with login credentials. and is available immediately for the PM to download from CRMS. and cannot act in the name of MERS Active SOs (who still maintain current certification) included on the organization’s most recent CR remain authorized as MERS Signing Officers.The username is the SO candidate’s full email address. When the SO candidate passes the Certification Exam. the CRMS sends an email to the PM. Pending approval of the updated CR: • • The new SO candidate is not authorized as a MERS Signing Officer. and the PM attests that all SO candidates are officers of the Member organization. The updated CR is attached to that email. 8. their status on the PM’s Corporate Resolution page changes to Test Passed. BCC’ing all SOs. 6. 5. When the request for an updated CR is approved by MERS. MERS® System Procedures Manual – Release 23. Once all SO candidates are in Test Passed status. The PM clicks the Submit for Approval button on the Corporate Resolution page to submit a request for an updated CR. 7. advising that MERS has approved the Member’s request for an updated CR.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 156 . a manager or higher level employee of the Member organization must contact the MERSCORP Holdings Help Desk at helpdesk@mersinc. A Vendor ID representing the relationship between the Member and Vendor is created in the CRMS. The Vendor SO candidates certify and recertify in the same way SO candidates certify and recertify for Org IDs.• The CRMS sends an email to the old PM telling them they no longer have administrative access to the CRMS for that Org ID. The Member must provide the full legal name of the Vendor. with the Member PM as PM for the Vendor ID.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 157 . and confirm the Member’s legal name and Org ID. The CRMS sends an email to the PM advising they have been given administrative access to CRMS for the new Vendor ID. 3. The Member submits a request to the Law Department contact responsible for receiving such requests for an SAA for its third-party Vendor. Business Procedure – Signing Authority Agreements A Member can establish a relationship with a third-party vendor (“Vendor”) to execute a Signing Authority Agreement (“SAA”) between the Member. MERS® System Procedures Manual – Release 23. 1. 5. the Vendor. MERSCORP Holdings and MERS. 4. All Vendor SO candidates must be either officers of the Vendor organization or licensed attorneys (in good standing with a state Bar association) employed by the Vendor. not the Vendor. The PM adds any SO candidates from the Vendor organization on the Corporate Resolution page for the Vendor ID in the same way they would add SO candidates from their organization on the Corporate Resolution page for their Org ID. 6. The request for an SAA must be made by the Member. 2. Once all Vendor SO candidates are in Test Passed status.7. If any Vendor SO candidate listed is neither an officer of the vendor organization nor a licensed attorney in good standing with a state bar association. MERS will review the request for a new or updated CR for the Vendor. or a licensed attorney in good standing with a state bar association. 12. The MERSCORP Holdings Law Department contacts the Member to get additional information for the SAA. the MERSCORP Holdings Law Department sends an email to the PM attaching an unexecuted SAA for execution by the Member and Vendor. 9. 11. 15. the PM selects No. the Submit for Approval button appears on the PM’s Corporate Resolution page for that Vendor ID. then returns to the Corporate Resolution page. 14. The status of that Vendor ID in CRMS is changed to Approved. 16. When the PM selects Yes. and removes any Vendor SO candidates who do not qualify before selecting the Submit for Approval button again. MERS® System Procedures Manual – Release 23. 10. MERS will issue a CR to the Vendor. 8. The CRMS displays a pop-up window asking the PM to attest that every Vendor SO candidate being submitted with this request is a current officer of that organization. When all necessary information is collected. When the SAA is fully executed. The Member and Vendor execute the SAA and send it back to the Law Department for execution by MERS and MERSCORP Holdings. the request is submitted to MERS for review. The PM clicks the Submit for Approval button on the Corporate Resolution page. and MERS and MERSCORP Holdings will execute the SAA. the SAA and the CR are sent by email to the PM and uploaded to the applicable Vendor ID in CRMS. and if approved.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 158 . 13. 3. 2. and are therefore unable to comply with Rule 3. along with the grounds for such. If Counsel determines that the Member has officers and therefore does not qualify for the Rule 3 Exception. or organizational charts.. certain government agencies. Since the SO candidates are not officers. Additionally the PM will be instructed to remove any SO candidates who are not officers of the Member before the PM submits the request for a new or updated CR.Business Procedure – Rule 3 Exceptions Rule 3 of the MERS® System and MERS® Commercial Rules of Membership provides that only an officer of a Member is eligible to be appointed as an SO.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 159 . the PM informs MERSCORP Holdings (in a process external to CRMS) that they are unable to make the attestation due to the fact that the Member does not have officers as part of their organizational structure. 4. but is not limited to.g. For those Members. incorporating documents. The MERSCORP Holdings Law Department counsel (“Counsel”) requests that the PM provide documentation supporting its claim that it does not have officers. Some Members do not have officers in their organizational structure (e. Documentation may include. The procedure for Rule 3 Exceptions is the same as that for a regular Member until the PM comes to the step of submitting a CR request for approval. internal board resolutions. 1. Counsel will inform the PM of the determination. limited liability corporations). The resubmitted request will then follow the usual procedures instead of these Rule 3 Exception procedures. the MERS Board of Directors established a limited exception to Rule 3 whereby “officerequivalents” of those Members may be appointed as SOs. If Counsel determines that the Member does not have officers and therefore qualifies for the Rule 3 Exception: MERS® System Procedures Manual – Release 23. when he or she would normally attest that each SO candidate is a current officer of the organization. If any SO candidates remain certified at the time of reactivation.• • • Counsel will verify with the PM that the Member wishes to be issued a CR Counsel confirms that all of the Member’s SO candidates are in Test Passed status in the CRMS Counsel drafts a Rule 3 Exception CR. SOs and any SO candidates listed in CRMS advising that any existing CR for that Org ID has been revoked by MERS. and presents to the MERS Corporate Secretary/Associate Corporate Secretary for signature The Rule 3 Exception CR is sent to the PM via certified mail and email. A copy is uploaded to the CRMS and the Member’s status in CRMS is changed to Approved. The CRMS generates an email to the PM welcoming them to the CRMS and providing new login credentials. they will appear in Test Passed status when they are added to the list of SO candidates on the Corporate MERS® System Procedures Manual – Release 23. and attached list of SOs. Access to the Resigned Org ID from the PM “Activities” page is denied as a result of the “Resigned” status. The PM must create a new CR request. Any CRs previously issued to the Member were revoked upon its resignation. • Business Procedure – Status Changes Change to “Resigned” Status When a Member is placed in “Resigned” status: • The CRMS sends an email to the PM. The SOs retain access to the Certification Exam on the “Activities” page. 2. the Member will appear in New status in the CRMS. • • Reactivation after “Resigned” Status When a Member in “Resigned” status reactivates its membership. 3.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 160 . 1. Starting on the first day of each quarterly attestation window. the Submit for Approval button appears on the PM’s Corporate Resolution page for that Org ID. Quarterly Attestation Requirement Each quarter. and November 1st of each calendar year. 4. or submit a request via the CRMS for an updated CR to be issued to any Org ID or Vendor ID having as CR that is not upto-date. MERS® System Procedures Manual – Release 23. If the current list of authorized SOs for any Org ID or Vendor ID with which the PM is associated is not up-todate.Resolution page. August 1st. all PMs have a thirty (30) day window in which they are required to either attest that the current list of SOs for each Org ID and Vendor ID with which they are associated is up-to-date and accurate. and the PM would then need to submit a request for approval to MERS via CRMS.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 161 . 1. the CRMS will display a pop-up message when the PM logs in. and clicks the Agree button to complete the attestation. otherwise the SOs will need to complete the certification or recertification process. the PM navigates to the Corporate Resolution page of that Org ID or Vendor ID. whichever comes first. 2. selects the “Quarterly Attestation” button from the navigation pane on the left side of the page to display an attestation pop-up window. the PM must make the appropriate updates and then submit a request for approval of an updated CR for that Org ID or Vendor ID. or until the PM attests for all Org IDs. informing them of the pending attestation requirement. Submitting the request for approval satisfies the quarterly attestation requirement for that Org ID or Vendor ID. Once all SO candidates are in Test Passed status. If the current list of authorized SOs for an Org ID or Vendor ID with which the PM is associated is up-to-date. May 1st. The message will be displayed for one month. The thirty (30) day windows for completing the Quarterly Attestation requirement will begin on February 1st. 3. MERS Corporate Seals In certain jurisdictions. and the “Quarterly Attestation” button will no longer be displayed on the “Corporate Resolution” page for that Org ID or Vendor ID. the PM selects the “Order New Corporate Seal” button to display a pop-up window. 3. Once the PM completes the quarterly attestation for all Org IDs and Vendor IDs with which the PM is associated. 5. and then selects the “Save and Close” button to complete the order. 1. The CRMS will redirect the PM to the “Corporate Seal” page. state. From the “Corporate Seal” page. 6. 5.4. that Org ID or Vendor ID will no longer appear in the attestation pop-up when the PM logs in to CRMS. and will complete the order by shipping the requested Seal(s) to the Member.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 162 . The PM requests a seal through the “Corporate Resolution” page of the CRMS by selecting the “Corporate Seal” link from the navigation pane on the left side of the page. the MERS® System/MERS® Commercial Members may be required to affix a MERS Corporate Seal (“Seal”) to documents that are sent for recording and related to mortgage loans where MERS is the mortgagee. the attestation pop-up will no longer display when the PM logs in to CRMS. If the PM does not complete the quarterly attestation for all Org IDs and Vendor IDs with which the PM is associated. 4. and zip code). The Member will be charged $25 plus shipping charges for each Seal. the attestation pop-up and quarterly attestation button will no longer display after the end of that attestation month. MERS® System Procedures Manual – Release 23. street address. city. 2. The PM fills out the order information (quantity. Once the PM completes the quarterly attestation for an Org ID or Vendor ID. MERSCORP Holdings receives the order from CRMS. Appointment only occurs once MERS issues a CR appointing an attached list of individuals as SOs. the SO must first pass the Exam in the CRMS. an individual is not yet an SO and may not sign or take any actions in MERS’ name (see the SO Primer). MERSCORP Holdings does not accept requests for Seals via phone or email. the order will be billed and shipped to the Member. The scope of authority granted by MERS to an SO is limited by the terms of the CR that appointed him or her. Until appointment. then his or her authority to act in the name of MERS is revoked (see SO Primer.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 163 .O. The Member’s PM must then submit a request for a new CR (including the expired individual’s name in the request). To extend MERS signing authority to a third-party Vendor.Seals cannot be sent to a personal residence or P. Signing Officer Best Practices The following guidelines should be followed by all SOs when executing documents in the name of MERS: 1. 2. 4. If an SO’s certification expires. Certification involves an individual reviewing the SO Primer. the Seal should be destroyed. Certification is not the same thing as appointment. All SOs are required to certify. available on the CRMS). via the CRMS. and then passing the Exam in the CRMS. and maintain that certification. the Member and its Vendor must enter into an SAA with MERS® System Procedures Manual – Release 23. The expired SO’s authority is only restored once MERS issues the new CR reappointing the individual as an SO. If a Member (or its Vendor) no longer needs a Seal in its possession. If a Member wishes to order Seals for one of their Vendors. Box. Seals are shipped via UPS Ground for tracking purposes. 3. To restore the authority of an expired SO. and the Member must then forward the Seals to their Vendor directly. MERSCORP Holdings does not send Seals to non-Members. MERS began issuing CRs that appoint SOs with the additional title of Assistant Vice President. Those titles are found in the CR that appointed the particular SO. 2012 appointed each SO as an Assistant Secretary and Vice President of MERS. CRs issued before April 1. SOs may only sign for MERS using the titles that MERS granted to them.0 – 12/10/2012 Corporate Resolution Management System (CRMS) • 164 .MERS and MERSCORP Holdings. 6. then his or her authority as an SO was revoked upon the issuance of the new CR. 5. Beginning April 1. 2012. Inc. Reports No reports are associated with this process. Once an SAA is in place. If an individual was appointed as an SO by a previous CR. Only the CR and corresponding list of SOs that are currently issued to a Member are valid. Every CR supersedes and replaces all previously issued CRs. MERS may issue a CR to the Member’s Vendor appointing certain Vendor employees as SOs and granting them authority to perform limited functions in the name of MERS on loans registered to that Member in either the MERS® System or MERS® Commercial (see the SO Primer). MERS® System Procedures Manual – Release 23. but a new CR has been issued that does not name the individual. 0 – 12/10/2012 Quality Assurance Policy • 165 . (“MERS”). In the case of Ginnie Mae pools. the Processing Standards are designed to ensure that: • • • • • A valid MIN is assigned to the loan and affixed in the proper location on the Note. it also eliminates the cost of endorsing the notes to the buyer.Quality Assurance Policy Overview Membership in the MERS® System 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. So that buyer and seller realize the full value of the MERS® System. or assignment to MERS MERS is accurately recorded in the county land records as mortgagee after loan origination or assignment to MERS The loan information is accurately registered on the MERS System after origination. MERS® System Procedures Manual – Release 23. If the servicer sells the servicing rights in the future to another MERS® System Member. The primary value to the seller is eliminating the cost of preparing and recording assignments. assignment to MERS. The primary value to the buyer of the servicing rights is reducing post closing and lien release costs due to the grounding of title in the name of Mortgage Electronic Registration Systems Inc. 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. but especially Members who service or sub-service loans. MERS is 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. paid off. it eliminates the cost of preparing and recording assignments. the seller and buyer update the MERS System to reflect the new ownership interests When a loan is foreclosed. or acquisition of servicing When beneficial or servicing rights are sold to another Member. MOM security instrument. or servicing is sold to a non-Member. Impact These processes impact all MERS® System Members. Organization Name) and indicate if specific sections are not applicable and provide the reason why they’re not applicable. The current servicer of a loan for which MERS has been named mortgagee inherits from the seller the responsibility for meeting the Processing Standards. reject/warning report process. and adherence to your organization’s internal MERS® System Quality Assurance Plan.mersinc. MERSCORP Holdings expects your company to integrate the MERS® System Quality Assurance Standards into your everyday business practices. To determine whether you are required to perform your system-to-system reconciliation monthly or quarterly: o Members servicing 1. training. and tools (or assistance in creating tools) that ensure the quality of generating MINs.000 or more active registered loans as of March 31st of that year must conduct at least monthly system-to-system reconciliations for all of the MERS® System required and conditional reporting fields.e. complete our QA Plan template and include your QA Plan as an addendum. We expect you to self-audit your performance against the Processing Standards by developing a quality assurance plan that is designed to meet or exceed the standards.0 – 12/10/2012 Quality Assurance Policy • 166 • . MERSCORP Holdings will provide the knowledge. Steps to complete your Quality Assurance Plan: • • Download the current Quality Assurance Plan template for your membership type from members. MERS® System Procedures Manual – Release 23. If you have written your own QA Plan. and the information on the MERS System. we require an annual report of the control structure of your organization’s system to system reconciliation process. We require that you keep your most recent MERS® System Quality Assurance Plan on file with MERSCORP Holdings.Strategy Your company committed to abide by the MERS® System Quality Assurance Standards by signing the Member Application. We expect your company to monitor your performance and to review your plan at least annually for accuracy and effectiveness. preparing and recording documents. Org ID. You must submit an updated QA Plan to MERSCORP Holdings at least annually. Quality Assurance Plan All Members are required to have in place a current MERS® System Quality Assurance (“QA”) Plan using the appropriate template. If you service loans registered on the MERS® System.org Insert values into fields that are highlighted (i. 000 active registered loans as of March 31st of that year must conduct at least quarterly system-to-system reconciliations for all of the MERS® System required and conditional reporting fields • Submit your Quality Assurance Plan o Email the documents to
[email protected] – 12/10/2012 Quality Assurance Policy • 167 . and that the limited document review. and procedures. Description Document Review This is a system-to-system comparison of “active” MIN data from the MERS® System to the Member’s System. and may issue Quality Assurance Profiles requiring a response. Quality Assurance standards and a MERS Signing Officer signature validation. Members are asked to provide tab delimited text files that include all “active” MINs serviced on the MERS® System from the Member’s servicing system or loan origination system on a particular date. Type of Review Data Review Selection Criteria Members are selected for a data review because they are currently a Servicer and/or Subservicer for MERS loans. MERSCORP Holdings will compare this data to a file from the MERS® System for the same date.o Members servicing fewer than 1. the MERSCORP Holdings Product Performance Department conducts Member data and document reviews. MERS® System Procedures Manual – Release 23. by the Member. Member is following the MERS® System • Adverse action has occurred documentation and quality assurance standards. Member compliance reviews may be conducted on-site at MERSCORP Holdings’ discretion. loan status and rights holder interests reflected on the MERS® System match the Member’s system.org. • An annual review is This review will be for active as well as MINs conducted where MERSCORP Holding’s largest deactivated in the past twelve months. A data review is to ensure that all required and conditional data fields. Quality Assurance Plan (submit one Plan per Org ID) Monitoring To monitor the effectiveness of our Members’ training. tools. These documents are then compared to reasons including: the MERS® System. Member will provide electronic copies of Members are selected for a document review because of various mortgage documents for a random sampling of MINs. A Members are selected for a document review is to ensure that the data on the MERS® System is correct. Please see Quality Assurance Review for a sample of the type of information that we typically request during a Quality Assurance Review. The Annual Report confirms: • Member has in place procedures designed to provide reasonable assurance that it has submitted to MERSCORP Holdings data for all the MERS® System required and conditional reporting fields. If a Servicer’s portfolio is subserviced and their Subservicers complete the Annual Report process. Member has conducted system-to-system reconciliations for all the MERS® System required and conditional reporting fields at the required frequency (monthly or quarterly. MERSCORP Holdings generates a Quarterly Quality Assurance Profile for selected Members. and discrepancies and remediation Quality Assurance Policy • 168 • • MERS® System Procedures Manual – Release 23.Type of Review On-Site Compliance Review Selection Criteria On-site reviews occur as a result of adverse conditions. the Servicer must identify their Subservicers in an attachment to the Servicer’s Annual Report. error percentage when compared to the MERS® System. see Requirements below). Annual Report The Annual Report of MERS® System Quality Assurance Standards Compliance ensures that each Member Servicer is compliant with the MERS® System Quality Assurance Standards.0 – 12/10/2012 . Required and conditional fields entered on the MERS® System on behalf of Member match those values in Member’s internal system. The owner of servicing rights for loans registered on the MERS® System is required to complete the Annual Report of MERS® System Quality Assurance Standards Compliance and submit it to MERSCORP Holdings. and sends it to each Member’s Executive Sponsor contact via email. Each selected Member must complete the Response page and return it within 30 days with information about the total MINs in the Member’s most recent reconciliation comparison. The On-Site review will be at the Member’s expense when the Member is selected due to a high number of exceptions. Description MERSCORP Holdings schedules a date with selected Members for MERSCORP Holdings to conduct an on-site review which will include observation of the Member’s MERS department workflows and procedures and meeting with the staff to discuss process improvement opportunities. Servicers must submit an Annual Report each calendar year for each Org ID. Quality Assurance Members are selected for quality assurance profile generation based Profile on factors including regulatory requirements. and total MIN status exceptions. 0 – 12/10/2012 Quality Assurance Policy • 169 • • . • • Your Annual Report is signed by your Executive Sponsor. third party review organization.000 MINs as of March 31st of that year. o Members servicing fewer than 1.000 or more active registered loans as of March 31st of that year are required to conduct at least monthly system-to-system reconciliations for all the MERS® System required and conditional reporting fields. Members must reconcile their portfolio according to the guidelines below. you may use an internal reviewer that is not affiliated with the MERS® System function of your organization. o Members servicing 1. or you may use an external. and status updates on open-item aging reports.activities necessary to align the two systems are tracked and monitored on aging reports until cleared. and by your third party review organization or internal reviewer (as applicable).000 MINs or more as of March 31st of that year. o Third party review organizations can be external auditors or third party compliance/consulting organizations. transfers. Member has monitored its performance against Member’s Quality Assurance Plan and has reviewed the plan at least annually for effectiveness and has revised the plan as necessary. • Member has in place procedures designed to provide reasonable assurance that it has conducted daily capture of all reject/warning reports associated with registrations. • If your organization is listed on the MERS® System as the Servicer of less than 1. All Members (except Lite Members) complete the Annual Report and attach to the Report any noted exceptions. third party review organization. you must use an external. Requirements: • If your organization is listed on the MERS® System as the Servicer of 1.000 active registered loans as of March 31st of that year are required to conduct at least quarterly system-to-system MERS® System Procedures Manual – Release 23. Member has in place procedures that are designed to provide reasonable assurance of compliance with the MERS® System rules and procedures applicable to the MERS Signing Officers. o Your organization’s Executive Sponsor must sign the Report. the external. third party review organization that reviewed your performance must sign the Report. • To verify or change who your Executive Sponsor is on the MERS® System. If the third party review organization refuses to sign the Annual Report.org.reconciliations for all the MERS® System required and conditional reporting fields o All Members completing the Annual Report must certify that they are conducting system-to-system reconciliations at the required frequency (monthly or quarterly). • Submit your Annual Report and Quality Assurance Plan each year. • Members must obtain the required signatures on the Annual Report. Quality Assurance Plan (submit one Plan per Org ID) Annual Report (submit one Report per Org ID) • Members must submit their completed Annual Report no later than December 31st of each year. the internal reviewer or external third party must sign the Report.000 or more active registered loans as of March 31st of that year. MERS® System Procedures Manual – Release 23.000 active registered loans as of March 31st of that year. If your portfolio is subserviced and your Subservicer(s) complete(s) the Annual Report process. you must still complete an Annual Report and identify your Subservicer(s) in an attachment to your Annual Report. o For Members servicing 1. see the Member Information Contacts Quick Reference Guide. o Email the documents to
[email protected] – 12/10/2012 Quality Assurance Policy • 170 . an alternate option is as follows: • Enter the name of the third party review organization on the “Signature of third party reviewer” signature line on the Annual Report Submit the signed engagement letter from the third party review organization o The engagement letter must specifically address each of the requirements listed on the Annual Report o For Members servicing less than 1. The accuracy of the information entered into the MERS® System affects the ability of MERSCORP Holdings to immediately and correctly identify the party to whom service of process should be directed. MERS as Original Mortgagee (MOM) Security Instrument Processing Standards • You must name Mortgage Electronic Registration Systems Inc. This created a number of problems and costs for buyers and sellers of servicing rights. • • Following are the MERS® System standards established for Member processing of MOM security instruments. lien releases and data integrity. industry participants agreed there were no industry-wide standards for the processing of assignments and lien releases. (“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. Recording and lien release processing standards are important because: • The ability of MERS® System Members to sell mortgage loans to each other without recording assignments is contingent on Mortgage Electronic Registration Systems Inc. To benefit consumers. many assignments and lien releases were not recorded in a timely manner. or were never recorded at all.0 – 12/10/2012 .Quality Assurance Standards Overview As the MERS System was being developed. The majority of mortgage industry participants that helped MERSCORP Holdings define standards for processing recording documents believed the entire industry would benefit. (“MERS”) being properly recorded as the mortgagee in the county land records. were improperly recorded. liens must be released as soon as possible after a loan is paid off. Sample MOM language is included in Sample Changes to Deed of Trust or Mortgage naming MERS as mortgagee. Without standards. and to avoid the possibility of MERS and MERS® System Members being assessed penalties for not having liens released in a timely manner. Quality Assurance Standards • 171 MERS® System Procedures Manual – Release 23. assignments for non-MOM security instruments. In all cases. and the Security Instrument is not recorded in the county land records. but not in any space reserved for the jurisdiction’s recorder per jurisdictional requirements. reverse the registration on the MERS® System within 10 calendar days of discovering the error. If a loan is registered but does not close. 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. but not in any space reserved for the jurisdiction’s recorder per jurisdictional requirements. • • For all loans assigned to MERS.• Place the Mortgage Identification Number (MIN) and Servicer Identification System telephone number (888-679-6377) in a visible location on the first page of the security instrument. county recorder requirements take precedence over the MERS® System requirements. Place the MIN and Servicer Identification System telephone number (888-679-6377) in a visible location on the first page of the assignment. In all cases. ensure MERS is named as Assignee in the county land records in accordance with the MERS® System document standards. • • • • Non-MOM Processing Standards Prepare the assignment document naming Mortgage Electronic Registration Systems Inc. If a loan is registered but does not close. Register (or convert from iRegistration to Non-MOM) the loan being assigned to MERS on the MERS® System within seven calendar days of the effective transfer date. the buyer must ensure that the loan is registered on the MERS® System within 14 calendar days of the Note Date (or Funding Date as applicable for refinance loans or in escrow states). In accordance with the Rules of Membership. If purchased before registration. the originator must register the loan with a MOM security instrument on the MERS System within seven calendar days of the Note Date (or Funding Date as applicable for refinance loans or in escrow states). for loans assigned into MERS by the originator or Purchaser. reverse the registration on the MERS® System within 10 calendar days of discovering the error. • MERS® System Procedures Manual – Release 23. the security instrument must still be recorded in the county land records. county recorder requirements take precedence over the MERS® System requirements. For originations. Execute and record the security instrument within state requirements and investor guidelines. the assignment date. (“MERS”) as mortgagee. if the jurisdiction doesn’t require recording. or is never assigned to MERS.0 – 12/10/2012 Quality Assurance Standards • 172 . and no document reflecting MERS has ever been recorded in the land records. iRegistration Processing Standards • • • Ensure MERS is not the current mortgagee or assignee. If MERS is the original mortgagee on the security instrument, ensure an assignment out of MERS has been recorded. Ensure no MIN, SIS telephone number, MERS address, or other reference to MERS is included on security instrument or assignments, unless MERS was once the mortgagee. Additional Recordable Documents Processing Standards • For MOM and Non-MOM loans, place the MIN and Servicer Identification System (SIS) telephone number (888-679-6377) in an area that is under or close to your company’s loan number on the document, unless that placement is not in compliance with county recorder requirements. In all cases, county recorder requirements take precedence over the MERS® System requirements. See Sample Documents for sample changes to documents and links to sample documents. For iRegistration loans, do not place the MIN, SIS telephone number, MERS address, or other reference to MERS on documents Enter the additional loan information (e.g. Assumption, Modification information for CEMA or construction loan, etc.) on the MERS® System within seven calendar days of its effective date, or of the Registration Date if later. • • Loan Information Processing Standards Note: The current Servicer and Subservicer are responsible for ensuring that all loan information is entered. • • For MOM loans, you must enter on the MERS System all loan information at the time of Registration. For non-MOM loans assigned to Mortgage Electronic Registration Systems Inc. (“MERS”), you must enter on the MERS System all loan information except Originating Organization at the time of Registration. You must enter Originating Organization on the MERS System within 90 calendar days of the effective transfer date or Assignment date: o Originating Org ID if originated by a MERS® System Member o Original Note Holder if originated by non-Member MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Quality Assurance Standards • 173 • For MERS® iRegistration loans, you must enter on the MERS System all loan information except Originating Organization at the time of Registration. You must enter Originating Organization on the MERS System within 90 calendar days of the Registration date: o Originating Org ID if originated by a MERS® System Member o Original Note Holder if originated by non-Member Lien Release Processing Standards • For MOM and Non-MOM loans: o Prepare the lien release document with MERS as mortgagee, signed by an individual authorized on the MERSCORP Holdings Corporate Resolution. 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, unless that placement is not in compliance with county recorder requirements. In all cases, county recorder requirements take precedence over the MERS® System requirements. o Execute and record the lien release document in accordance with state and investor guidelines. In accordance with the MERS® System Rules of Membership, if the jurisdiction doesn’t require recording, the lien release must still be recorded in the county land records. • For iRegistration loans: o Do not place a MIN, SIS number, MERS address or other reference to MERS on documents. • Change the MIN status to “paid in full” and enter the Effective Payoff Date on the MERS System within five calendar days of payoff of the loan on the Member’s system. Foreclosure Processing Standards • • For MOM and Non-MOM loans, obtain an assignment from MERS before foreclosure is initiated and send it for recording. Change MIN status to “Deactivate - Assigned from MERS for Default or Bankruptcy” for MOM or Non-MOM, or “Foreclosure Pending Option 3” for iRegistration, within five calendar days of when the foreclosure is initiated. MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Quality Assurance Standards • 174 • For iRegistrations, and MOM and Non-MOM loans in Pending status, change MIN status to “Foreclosure Complete” or “Foreclosure Reinstated” within five calendar days of this action taking place. Bankruptcy Processing Standards • • If borrower files bankruptcy and the servicer chooses not to file a Proof of Claim or Motion for Relief from Stay, MIN may stay in an active status. If borrower files bankruptcy and servicer chooses to file a Proof of Claim or Motion for Relief from Stay, servicer MUST execute an assignment from MERS prior to filing the Proof of Claim or Motion for Relief from Stay. The Deactivate-Assigned from MERS for Default or Bankruptcy transaction needs to be completed within five calendar days of filing. Deactivation Processing Standards • • • If a deactivation was performed in error, reverse the deactivation on the MERS® System within ten (10) calendar days of discovering the error. Change MIN status to deactivation reason on the MERS® System within five calendar days of the event that caused the deactivation. For all MOM and Non-MOM loans deactivated for reason of “Transfer to Non-MERS Status,” “Default by Servicer,” or “Default by Subservicer,” execute assignments within seven calendar days of the deactivation date and ensure they are recorded. Member Information Update Standards • At least monthly, ensure that all Member Information on the MERS® System is current and accurate. This includes: o o o o o Member name (contact MERSCORP Holdings to change) Member address(es) Member phone and fax numbers Member URL Member contact information (names, addresses, phone numbers, and email addresses), including at a minimum: • Primary Customer Service • Primary System Administrator • Operational • Accounts Billing Quality Assurance Standards • 175 MERS® System Procedures Manual – Release 23.0 – 12/10/2012 • Executive Sponsor • Legal • Quality Assurance Officer • Technical (required if using system-to-system interface to the MERS® System) (For definitions of these contact types, see Member Information section.) Service of Process Standards • • • Maintain a valid Global Address List (GAL) email address for official MERS® communications including the receipt of Service of Process, which is monitored daily Respond to Service of Process forwarded by the MERSCORP Holdings Help Desk within the timelines outlined in the document received, or recording jurisdictions Provide MERSCORP Holdings with information requested in accordance with Rule 14 Corporate Resolution Management System (CRMS) Update Standards • At least monthly, review all information on the CRMS and in your MERS Corporate Resolution and ensure that is current and accurate. This is an internal check and is separate and apart from the quarterly attestation that you will be required to perform within the CRMS. Check for the following: o All MERS Signing Officers (“Signing Officers”)listed for your Org ID are currently officers of your organization o All Signing Officers listed on your current MERS Corporate Resolution have a current certification (are in Test Passed or ReCertify status) o The email address for each Signing Officer is the unique business email address of that officer o All information entered for each Signing Officer is current o All Signing Officers listed for your Vendor ID(s) are currently officers of the vendor organization or licensed attorneys in good standing of a state bar association o All Signing Officers listed for your Vendor ID(s) have a current certification (are in Test Passed or ReCertify status) MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Quality Assurance Standards • 176 g. name changes for marriage/divorce). not the borrower's name as signed by the borrower. and note for borrower information). the MERS® System. Note: If a specific investor’s requirements are more stringent than the MERS® System requirements. and your loan origination system or servicing system. 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 Member’s system (including middle name or initial). complete the quarterly attestation for each active Org ID and Vendor ID in the CRMS. otherwise to the data on the internal system of the Servicer. Non-MOM loans include Quality Assurance Standards • 177 • • • • • • MERS® System Procedures Manual – Release 23. Subject property address must match exactly the property address in the Member’s system.. For assumed loans. Loan which was assigned into the MERS® System (MERS is the mortgagee through assignment). the investor’s requirements supersede the MERS® System policy. All borrower social security numbers or tax identification numbers on the MERS® System must match the corresponding number on the Member’s system. it may be necessary to examine other documents in the overall loan file to verify that the information is accurate. SSN Numbers. • • Loan status on the Member’s system must match the MERS® System. These names should match the printed name of the borrower on the note. Note Date and Note Amount must match the date and amount on the Member’s system.• Each quarter.0 – 12/10/2012 . Property County or FIPS code must match the county listed on the Member’s system. the current borrower name(s) on the MERS® System must match the borrower name(s) on the Member’s system. MOM Indicator is set to the appropriate value for the loan: MOM Indicator Value MOM Non-MOM Condition Loan which was originated with MERS as the Original Mortgagee. For certain validations (e. Upon registering a loan on the MERS® System. ensure a three-way validation occurs between the information on the loan documents (recorded security instrument. Data Integrity Standards These Standards apply to the data on the internal system of the Subservicer if one is named on the MERS® System. if required by the investor. • • • • Note: When the Investor field contains a securitization trustee. correctly reflects loan originator. if required by the Investor. FHA/VA Case numbers. Investor Pool Number in Pool Number field on the MERS® System must match the Member’s system. Members are required to populate the Pool field for Agency securitizations only and populate the Securitization field for non-Agency securitizations. must match those on the Member’s system. Loan which was registered on the MERS® System for informational purposes only (MERS is not the mortgagee of record). Investor Loan Number and Agency ID. 2012 contains Originating Org ID. Owner Occupied flag on the MERS® System must match the Member’s system. Originating Org ID for the MERS® System Member. Subservicer identified as current Subservicer on the MERS® System must be the subservicer designated on the Member’s servicing system. Quality Assurance Standards • 178 MERS® System Procedures Manual – Release 23. Securitization field on the MERS® System must match the Member’s system.MOM Indicator Value Condition iRegistration loans subsequently converted to a Non-MOM. • • • Servicer identified as current Servicer on the MERS System must be the servicer designated on the Member’s system.0 – 12/10/2012 . iRegistration • • • Lien Type on the MERS® System must match the Member’s system. Investor identified as the current Investor on the MERS System must be the investor designated on the Member’s system. o Example: ABC Trustee 2010-10 or ABC as Indenture Trustee of the 2008HE325trust. if the investor is either an Option 1 or an Option 2 Member Investor. o You may identify a non-Member investor with an alias by using Org ID 1000002 (Undisclosed Investor). must match those values on the Member’s system. and MOM loan registered after March 31. • The seller must initiate all Transfer of Beneficial Rights transactions within five calendar days of the effective transfer date. If applicable. or Original Note Holder for NonMember. or property (e. borrower. Data Reconciliation Standards Loan Information You must reconcile the following fields from the MERS® System to your internal system for all active loans at the required frequency (monthly if you service 1. • • Required = Must be present for all loans Conditional = Required if field applies to that loan.000 or more active registered loans or quarterly if you service under 1. coborrower information if present on note.0 – 12/10/2012 Quality Assurance Standards • 179 . whichever is later. Originating Org ID if MOM loan) Any fields that contain data on the MERS® System must be reconciled with your internal system as well.• The seller must initiate all Transfer of Servicing Rights transactions within five calendar days of the effective transfer date.g. 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. Please refer to the Glossary for field level definitions. Any fields populated on your internal system but not on the MERS® System do not need to be reconciled. MERS® System Field Name MIN_NBR MIN_STAT LIEN_TYPE NOTE_AMT NOTE_DT ORGNL_MRGTE_ID NOTE_HLDR_NM SERVR_ORG_ID Field Description MIN (Mortgage Identification Number) MIN Status Indicator Lien Type Note amount Note date Originating Org ID Original Note Holder Servicer Org ID Required or Conditional Required Required Required Required Required Conditional Conditional Required MERS® System Procedures Manual – Release 23. Note: Both buyer and seller are responsible to MERS for ensuring that transfers are completed within 30 days of the sale date or batch creation date.000 active registered loans. MERS® System Field Name SUB_SERVR_ORG_ID INVST_ORG_ID OWNR_OCC_FLG PPC1_ID BORR_CORP_NM BORR_FST_NM BORR_MID_NM BORR_LST_NM BORR_SSN BORR_CORP_NM BORR_FST_NM BORR_MID_NM BORR_LST_NM BORR_SSN PROP_NBR PROP_STRT PROP_UNIT_NBR PROP_CITY PROP_ST PROP_ZIP PROP_DESCR_VAL Field Description Subservicer Org ID Investor Org ID Owner Occupied Flag Property Preservation Co 1 Org ID Borrower corporate name Borrower first name Borrower middle name Borrower last Name 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 Street Number Property Street Name Property Unit number Property City Property State Property Zip Property County FIPS Code Required or Conditional Conditional Required Required Conditional Conditional Conditional Conditional Conditional Required Conditional Conditional Conditional Conditional Conditional Required Required Conditional Required Required Required Required MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Quality Assurance Standards • 180 . 0 – 12/10/2012 Quality Assurance Standards • 181 . you must reconcile the following information at least monthly: • • • Member Information on the MERS® System MERS Signing Officer information on the CRMS Ensure reconciliation of the MINs for the Same Primary Borrower SSN.MERS® System Field Name SI_IN_MERS INVST_LOAN_NBR FHA_VA_MI_NBR POOL_NBR SECURITIZATION AGENCY_NBR Field Description MOM Indicator Investor Loan number FHA/VA/Mi loan number Pool Securitization Agency ID Required or Conditional Required Conditional Conditional Conditional Conditional Conditional In addition to the loan information you reconcile between the MERS® System and your internal system(s). Property and First Lien – Monthly (RI) Report Member Information on the MERS® System o Name o Address(es) o Telephone and fax numbers o URL o Contact information for all required contacts MERS Signing Officer Information on the CRMS: o All MERS Signing Officers listed for your Org ID are currently officers of your organization o All MERS Signing Officers listed on your current MERS Corporate Resolution have a current certification (are in Test Passed or ReCertify status) MERS® System Procedures Manual – Release 23. 0 – 12/10/2012 Quality Assurance Standards • 182 .o The email address for each MERS Signing Officer is the unique business email address of that officer o All information entered for each MERS Signing Officer is current o All MERS Signing Officers listed for your Vendor ID(s) are currently officers of the vendor organization or licensed attorneys in good standing of a state Bar association o All MERS Signing Officers listed for your Vendor ID(s) have a current certification (are in Test Passed or ReCertify status) Loans reflected on the MINs for the Same Primary Borrower SSN. Note: Deactivated MINs. create the appropriate transaction to reflect the transfer of servicing to the correct Member. o If the Member servicing the associated MIN is unresponsive. Servicers and Subservicers should also reconcile daily your loans reflected on the MINs for the Same Primary Borrower SSN. Note: Duplicate MINs do not appear on either report until after five calendar days have passed from the first occurrence of the MIN being identified as a duplicate. This reconciliation process is comprised of MIN and Member data extracts from the MERS® System. Property and First Lien – Monthly (RI) Report: o Contact the Servicer or Subservicer of the associated MIN to ensure two first liens were not originated for the same borrower and property combination. o If a listed loan has been refinanced. including MINs with a Status of Foreclosure Complete. are not included in the Member Reconciliation Extracts (MREs). Property and First Lien – Daily (RH) report. Both the RH and RI reports report all matching MINs. o If your company is not servicing a loan listed for your Org ID.org. request that the Servicer or Subservicer deactivate the old MIN. The files are as follows: MERS® System Procedures Manual – Release 23. contact RI@mersinc. The data extracts are provided monthly to Active Members in the form of nine tab-delimited output files placed in the Member's FTP “out” folder. Member Reconciliation Extract (MRE) MERSCORP Holdings has a reconciliation process to assist larger Members with their monthly system-to-system reconciliation. Member: member information by Org ID 8. MIN Holders: primary rights holder information by MIN 3. designate the certificate type. Contacts: contact information for each Org ID for target member 9. Please contact compliance@mersinc. Associated Members: additional rights holder information by MIN 4. If you would like to schedule the monthly member extract output files for your organization. Legal Description: legal description information by MIN 7. MIN Information: general data by MIN 2. Certificates of Ownership are available which authorize MERSCORP Holdings to initiate transfers on behalf of resigning Members.000 MINs). you find that there are MINs naming a resigning Member in the MERS® System but for which your organization is servicer. Quarterly Reconciliation Extract (QRE) For members who are required to reconcile quarterly (less than 1.org. This information can be downloaded and compared to the data on your internal system. Borrowers: all borrower information by MIN 5. Please be aware that in submitting a certificate you are indemnifying MERS and MERSCORP Holdings if inaccurate information in the certificate subjects MERS and/or MERSCORP Holdings to damages. enter the MERS® System Procedures Manual – Release 23. Assignment Information: assignment information by MIN 6. we have an alternate reporting solution – the quarterly reconciliation extract. Using these extract files requires FTP connectivity to your MERS® System FTP folders. subservicer or investor. Modification Data: a MIN’s Modification Agreement information The MERS® System Recon Output File Layouts in the MERS® System Integration Handbook Volume II outline information contained in each of the tab delimited output files. The Online form allows you to log in using an authorized Org ID and User ID combination.1. the MINs can be claimed using the below process. Reconciliation of MINs Naming a Resigning Member If during your reconciliation.org for additional information or to have this scheduled for your organization. please contact the MERSCORP Holdings Help Desk at
[email protected] – 12/10/2012 Quality Assurance Standards • 183 . you assert the requestor is authorized to commit your organization to the transaction requests and resulting fees. and the associated User Name must match name of requestor) Requestor’s business email address (domain must match that for Org ID) When the transaction has been processed on the MERS® System. an email is sent from certificates@mersinc. and automatically submit the certificate to MERSCORP Holdings for approval.0 – 12/10/2012 Quality Assurance Standards • 184 .org. Access to submit the Online certificates is obtained by providing the below information for each Org ID to ppd@mersinc. MERS® System Procedures Manual – Release 23.appropriate previous and new rights holder information. By submitting these credentials. upload the MIN list. but the User ID must be active.org to your GAL email address that contains the transfer batch number to be confirmed. • • • Name of authorized requestor Requestor’s MERS® OnLine User ID (No particular security role is required. but are not limited to. to help us understand and improve your MERS® System processing. and/or servicing or loan origination system data to compare the information to the MERS® System. and that the Member is following the MERS® System documentation and quality assurance standards. and procedures. the MERS® System Rules of Membership state Mortgage Electronic Registration Systems Inc. reviewing mortgage documents for the MERS® System registered loans serviced/originated by the Member and/or data from the Member’s servicing or loan origination system. Checklist Items MOM Security Instrument Document Review Approved MOM language used Correct MIN and SIS Number placed on documents MIN and SIS Number positioned in correct location on required documentation Security Instrument recorded in accordance with state and investor guidelines. MERSCORP Holdings may request a random sampling of documents (for MOMs.0 – 12/10/2012 Quality Assurance Review • 185 . 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. non-MOMs and iRegistrations). If the loan is a co-op. MERSCORP Holdings may also conduct an on-site review of your MERS® System processes.Quality Assurance Review To ensure compliance with MERS® System Quality Assurance standards. MERSCORP Holdings performs quality assurance reviews which may include. however. even if the jurisdiction does not require recordation. a UCC-1 or UCC-3 may be submitted MERS® System Procedures Manual – Release 23. departments. This helps ensure that the data on the MERS® System is correct. and speak with the staff performing your MERS® System functions. workflow. must be named in the county land records MOM indicator is set to “MOM” in the MERS® System Originating Org ID correctly reflects loan originator Security Instrument registered on the MERS® System within seven calendar days of Note Date (or Funding Date as applicable for refinance loans or in escrow states). verify that the MERS Signing Officer signature is valid: MERS® System Procedures Manual – Release 23. or other reference to MERS on security instrument or assignments MOM indicator is set to “iRegistration” in the MERS® System Where an assignment from MERS has occurred. or assignment out of MERS recorded before registration as iRegistration loan No MIN. SIS telephone number.Non-MOM Document Review 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 Assignor name (when assigning to MERS) or Assignee (when assigning from MERS) name indicated on the MERS® System match the executed Assignment MOM indicator is set to “Non-MOM” in the MERS® System For documents other than the initial assignment to MERS. verify that the MERS Signing Officer signature is valid: o MERS Signing Officer was authorized to act (at the time of execution) in the name of MERS pursuant to appointment by a MERS Corporate Resolution issued to that Org ID o MERS Signing Officer is proven to be an officer (at the time of execution) of the Member company to which the MERS Corporate Resolution was issued o Signing Officer is present on approved Signing Officer list for that ORG ID and date Loan registered or converted from iRegistration to Non-MOM within seven calendar days of Transfer Date or Assignment Date Assignment executed within seven calendar days of Registration Date and recorded iRegistration Document Review No MERS-related language used.0 – 12/10/2012 Quality Assurance Review • 186 . o MERS Signing Officer was authorized to act (at the time of execution) in the name of MERS pursuant to appointment by a MERS Corporate Resolution issued to that Org ID o MERS Signing Officer is proven to be an officer (at the time of execution) of the Member company to which the MERS Corporate Resolution was issued o Signing Officer is present on approved Signing Officer list for that ORG ID and date Lien Release Document Review For MOM and non-MOM loans: o Approved MERS as Mortgagee language used o Correct MIN and SIS number placed on documents o MIN and SIS Number positioned in correct location on required documentation o Lien Release recorded o MERS Signing Officer signature is valid: MERS Signing Officer was authorized to act (at the time of execution) in the name of MERS pursuant to appointment by a MERS Corporate Resolution issued to that Org ID MERS Signing Officer is proven to be an officer (at the time of execution) of the Member company to which the MERS Corporate Resolution was issued Signing Officer is present on approved Signing Officer list for that ORG ID and date For iRegistration loans: o No MIN.0 – 12/10/2012 . SIS number. or other reference to MERS placed on documents o MIN status on the MERS® System is updated to reflect Paid in Full within five calendar days of pay off Foreclosure Document Review Foreclosure documentation matches foreclosure status transacted on the MERS® System Member supplies proof that foreclosure was initiated Pending option in the MERS® System matches documentation Quality Assurance Review • 187 MERS® System Procedures Manual – Release 23. or other reference to MERS placed on documents Bankruptcy Document Review Bankruptcy documentation matches bankruptcy status transacted on the MERS® System Member supplies proof that assignment from MERS was executed and sent for recording before bankruptcy was initiated Quality Assurance Review • 188 MERS® System Procedures Manual – Release 23. provide subsequent deed immediately removing MERS from title For iRegistration loans: o No MIN. For MOM and Non-MOM loans: o Member supplies proof that assignment from MERS was executed before foreclosure was initiated. and that MERS was removed from the applicable public land records o Assignment from MERS contains: 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 Valid MERS Signing Officer signature: o MERS Signing Officer was authorized to act (at the time of execution) in the name of MERS pursuant to appointment by a MERS Corporate Resolution issued to that Org ID o MERS Signing Officer is proven to be an officer (at the time of execution) of the Member company to which the MERS Corporate Resolution was issued o Signing Officer is present on approved Signing Officer list for that ORG ID and date o For foreclosures initiated in the name of MERS(allowed prior to July 22. SIS number. MERS was not left in title on sale documentation (unless in a state where this was temporarily allowed) If title was deeded to MERS temporarily. 2011): If property went to sale.0 – 12/10/2012 . Please note that MERS Corporate Resolutions are Org ID specific. If borrower files Bankruptcy and servicer chooses to file a Proof of Claim or Motion for Relief from Stay. Additional Legal-Specific Guidelines for Document Reviews MERS Signing Officer Name • The name of the MERS Signing Officer on the document must match a name appearing on a MERS Corporate Resolution issued to that Member or a Signing Authority Agreement issued to one of the Member’s vendors. MERS® System Procedures Manual – Release 23. servicer MUST execute an assignment from MERS prior to filing the Proof of Claim or Motion for Relief from Stay. Member supplies proof that bankruptcy was initiated (Proof of Claim or Motion for Relief from Stay) Pending option in the MERS® system matches documentation Assignment out of MERS contains: o Correct MIN placed on Assignment o MIN positioned in correct location on Assignment o Correct SIS Number positioned in correct location on Assignment Valid MERS Signing Officer signature: o MERS Signing Officer was authorized to act (at the time of execution) in the name of MERS pursuant to appointment by a MERS Corporate Resolution issued to that Org ID MERS Signing Officer is proven to be an officer (at the time of execution) of the Member company to which the MERS Corporate Resolution was issued o Signing Officer is present on approved Signing Officer list for that ORG ID and date If borrower files Bankruptcy and the servicer chooses not to file a Proof of Claim or Motion for Relief from Stay MIN may stay in an active status.0 – 12/10/2012 Quality Assurance Review • 189 . the MERS Corporation Resolution must match the Org ID that the loan was registered to at the time the document was executed. Deactivate-Assigned from MERS for Default or Bankruptcy transaction needs to be completed within five calendar days of filing. The MERS Signing Officer must be an officer of the Member or third-party vendor. The signature of the MERS Signing Officer need not match exactly.o The MERS Signing Officer that executed the document must be on the MERS Corporate Resolution that was active at the time the document was executed. o Documents confirming the MERS Signing Officers internal status as an officer of the Member or Vendor may include. and affidavits from a different corporate officer. o The only permitted exception to this requirement is for licensed attorneys (who are in good standing with a state Bar) that were appointed as MERS Signing Officers for a third-party law firm (pursuant to a Signing Authority Agreement).” or of “Mortgage Electronic Registration Systems. and the loan document was executed on 3/1/11. Please note that when new MERS Corporate Resolutions (and accompanying lists of authorized MERS Signing Officers) are issued.0 – 12/10/2012 Quality Assurance Review • 190 . MERS® System Procedures Manual – Release 23. they replace any pre-existing ones that the Member may have had in place. the 2/1/11 MERS Corporate Resolution was the one that was effective at the time the loan document was executed. or Vice President of “Mortgage Electronic Registration Systems.: if a Member has been issued two (2) MERS Corporate Resolutions (on 1/1/11 and 2/1/11). middle name does not need to appear on the document. as nominee for [Name of Original Lender on Security Instrument] its successors and assigns. • The name printed on the document should exactly match (first and last name. Inc. Inc. internal corporate resolutions. but are not limited to. board consents. but if it does.g. then it must exactly match) the name appearing on the appropriate MERS Corporate Resolution.” Date Discrepancies • The document should not have an effective date that is different from the date on which the document was actually signed. • • MERS Signing Officer Title • The title appearing with the MERS Signing Officer’s signature should be either Assistant Secretary. charters. Assistant Vice President. E. but it should be consistent with the printed name on the document. MERS is Accurately Described in the Document • If MERS is referred to as a nominee in the document. then the language “its successors and assigns” must also be included.. its successors and assigns” • MERS should not be referred to as any of the following: o Servicer o Lender o Beneficial owner o Owner o Investor • Appropriate references to MERS include the following: o Mortgagee o Beneficiary o Grantee o Mortgage Holder o Lienholder MERS Corporate Seal • If a corporate seal is affixed to the document. o E.g. Inc. MERS® System Procedures Manual – Release 23. as nominee for [Original Lender Named on Security Instrument]. it must be a MERS Corporate Seal that matches the seal example provided below. “Mortgage Electronic Registration Systems.0 – 12/10/2012 Quality Assurance Review • 191 . 0 – 12/10/2012 . Current Borrower Name(s) on the MERS® System match current borrower(s) on Member’s servicing system All Borrower Social Security or Tax ID numbers on the MERS® System match Member’s servicing system and reflect valid SSNs or TINs (except 111111111 used for foreign national with no SSN) Property address matches the address on the Member’s system Property County or FIPS code matches the legal description on the Member’s system (County where property is located) Note Date on the MERS® System matches Member’s system Quality Assurance Review • 192 MERS® System Procedures Manual – Release 23. please ensure that MERS is appropriately described in the assignment (refer back to the “MERS is Accurately Described…” section.If the Document is an Assignment • Assignment from MERS o MERS should only be reflected as assigning the Mortgage/Deed of Trust/Security Deed. above). Data Integrity Review MOM Indicator correctly reflects MERS as Mortgagee status Original Borrower Name(s) on the MERS® System match Member’s system and the original note. MERS should not be reflected as assigning the promissory note. The following are examples of language that should not be included in a MERS assignment: • Together with the note/promissory note/indebtedness And the note/promissory note/indebtedness Along with the note/promissory note/indebtedness Assigns the note/promissory note/indebtedness Transfers the note/promissory note/indebtedness Assignment to MERS If a mortgage loan is assigned to MERS. 0 – 12/10/2012 Quality Assurance Review • 193 . and MOM loan registered after March 31. complete Company Information Change Request form and submit to MERSCORP Holdings o Member addresses are current and complete o Member phone and fax numbers are current o Member URL is current o Contact information is present and accurate for all the following contact types: Accounts Billing Primary System Administrator MERS® System Procedures Manual – Release 23. and matches Member’s system Securitization field on the MERS® System for MINs in rated securities contains trust name if securitization trustee is not an Agency. FHA/VA case numbers match Member’s system Pool Number field on the MERS® System for MINs in rated securities contains pool number if securitization trustee is an Agency. o Member name reflects legal name For name change. 2012 contains Originating Org ID Investor Loan Number and Agency ID (if required) match Member’s system If applicable. correctly reflects loan originator. Note Amount on the MERS® System matches Member’s system Lien Type on the MERS® System matches Member’s system Investor on the MERS® System matches Member’s servicing system Servicer on the MERS® System matches Member’s servicing system Subservicer on the MERS® System matches Member’s servicing system Originating Org ID for the MERS® System Member. and matches Member’s system Owner Occupied flag on the MERS® System matches Member’s system Member Information Review All Member Information (including Contact Information) on the MERS® System is current and accurate. or Original Note Holder for NonMember. 2) The 18-digit mortgage identification number (“MIN”) required for each loan registered on the MERS® System.. MI 48501-2026. (c) assignment of security instruments to or from MERS. 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. Inc. (888) 679MERS (6377). (b) other security instruments. Placement of the MIN on other loan documentation is optional for the Lender. However. Box 2026. as well as the SIS telephone number. (d) lien releases or reconveyances and (e) any other instruments recorded in the public land records in which MERS has a legal interest. 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. and is monitored daily. o To change this address. MERS® System Procedures Manual – Release 23. tel. Flint.O. a Delaware stock corporation with an address and telephone number of P. contact the MERSCORP Holdings Help Desk Sample Documents for MOM Loans and Loans Assigned to MERS MERSCORP Holdings does not mandate specific language changes to mortgage loan documents.0 – 12/10/2012 Quality Assurance Review • 194 . Primary Customer Service Legal Operational Quality Assurance Officer Executive Sponsor Technical (if using system-to-system interface to the MERS® System) o Contact information for required contacts includes at a minimum: Name Address Telephone number Email address GAL email address is current and accurate. 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. Specific state or local recording laws. MERS is the [grantee/beneficiary/mortgagee] under this Security Instrument. Below is just a generic sample of what changes may need to be made. MI 485012026. e. In the Definitions section: MERS as Grantee/Mortgagee language. and all renewals. For this purpose. (888) 679-MERS (6377). Box 2026. “MERS” is Mortgage Electronic Registration Systems.g. Borrower does hereby [mortgage. the following described property located in or MERS® System Procedures Manual – Release 23. but not within the top recording margin or on the right margin. The specific language and placement may vary from state to state. e. tel. Sample Changes to Deed of Trust or Mortgage naming MERS as the Original Mortgagee (MOM Document) The 18-digit MIN must be visible on the Security Instrument. with power of sale. Flint. and (ii) the performance of Borrower’s covenants and agreements under this Security Instrument and the Note. In the granting clause: MERS noted as grantee solely as nominee for lender. and has an address and telephone number of P. Please check with your documentation preparation vendor for state specific forms. extensions and modifications of the Note. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender’s successors and assigns. The following materials are provided to give Lenders guidance on the changes that may be appropriate to achieve our requirements. This Security Instrument secures to Lender: (i) the repayment of the Loan.0 – 12/10/2012 Quality Assurance Review • 195 . Place the MIN to the right of the form title.O. and agency or investor requirements.g. deed of trust and other security instruments should be modified to add Mortgage Electronic Registration Systems. Inc. Inc. may require other changes to the documents.] grant and convey to MERS (solely as nominee for Lender and Lender’s successors and assigns) and the successors and assigns of MERS.3) Notice provisions in the mortgage. MERSCORP Holdings is not rendering legal advice to Lenders. MERS is organized and existing under the laws of Delaware. e.mersinc.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. but. in trust. Borrower irrevocably grants and conveys to Trustee. the right to foreclose and sell the Property. Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument. Sample Documents The following sample documents are available on the Members website at https://members. but not limited to. MERS (as nominee for Lender and Lender’s successors and assigns) has the right: to exercise any or all of those interests. This Security Instrument secures to Lender: (i) the repayment of the Loan. For this purpose. then Forms): MOM Deed of Trust or Mortgage Corrective Affidavit for Assignment Corrective Affidavit for Security Instrument 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 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. Extension and Modification Agreement Sample California Assignment MERS to MERS Sample Subordination Agreement Sample Subordination of Lien Sample Security Deed Quality Assurance Review • 196 MERS® System Procedures Manual – Release 23. including. if necessary to comply with law or custom. releasing and canceling this Security Instrument. extensions and modifications of the Note. but not limited to. and all renewals. and to take any action required of Lender including. with power of sale.org (select the MERS® System tab.0 – 12/10/2012 . the following described property located in Add Borrower consent sentence.g. and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. Also known as MECA The final digit of the 18-digit Mortgage Identification Number (MIN). A group of one of more MINs identified to be included in a Transfer of Beneficial or Servicing Rights transaction. Names listed on the Security Instrument but not listed on the Note should not be entered on the MERS® System. this results in replacement of the Primary Borrower and all Co-Borrowers. A MERS® System Member that has been granted inquiry only access to loan information by the Servicer/Subservicer of a mortgage registered on the MERS® System. These transfers are tracked for MERS® System Members on the MERS® System. real or personal. A system-to-system transaction used to update the MERS® System.0 – 12/10/2012 Glossary • 197 . The MERSCORP Holdings employee who assists you in incorporating the MERS® System into your business processes. In the MERS® System. Each additional borrower listed on the Note is a Co-Borrower for that loan on the MERS® System. Consolidation. 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. which is calculated using the MOD 10 Weight 2 algorithm.Glossary Term Acquisition Date Agency ID Assignment Associated Member Definition The date of acquisition recognized in the books and records of the Purchaser. Business Integration Resource. A number assigned by a government agency to uniquely identify a mortgage company. Transaction used to look up information on loans matching search criteria entered using a flat file format. or Subservicer to indicate if a pending transfer transaction should be accepted or rejected. Assumption Batch Batch File Batch Inquiry Beneficial Rights Transfer BIR Bulk Transfer CEMA Check digit Co-Borrower Confirmation MERS® System Procedures Manual – Release 23. Servicer. Extension. Names listed on the Note but not the Security Instrument should be entered as borrowers on the MERS® System. Taking over by one party of an obligation that was originally incurred by another. A transfer to another of any property. and Modification Agreement. or of any rights or estates in said property. The transaction used by an Investor. The first borrower listed on the Note is the Primary Borrower for that loan on the MERS® System. IMPORTANT: There can only be one individual designated for this contact type. eRegistry (mandatory for eRegistry Members) Contact for MERS® eRegistry questions. Compliance Officer Contact responsible for regulatory internal requirements for your organization. and resetting passwords.0 – 12/10/2012 . System Administrator Primary (mandatory) Person responsible for setting up unique User ID for each person at your company needing access to MERS® OnLine. Appears in the Member Summary on the member website. Quality Assurance Officer (mandatory) Contact responsible for the MERS® System Quality Assurance. Executive Sponsor (mandatory) The senior executive within your organization under whose management the MERS® System operation falls. Legal (mandatory) Contact responsible for coordinating communication between the MERSCORP Holdings Law Department and the Member’s internal law department regarding litigation and other legal issues. (MERSCORP Holdings Help Desk refers user security requests for your Glossary • 198 • • • • • • • • • • • MERS® System Procedures Manual – Release 23. Mail Room Contact responsible for handling mail received by MERSCORP Holdings Mail Center for your organization. Property Preservation Contact responsible for handling property preservation for your organization. and MERS® Link. MERS® OnLine. Customer Service Primary (mandatory) Contact who handles public requests for information about loans registered on the MERS® System Customer Service Secondary Back-up for Customer Service Primary contact. Operational (mandatory) Person(s) responsible for overseeing or conducting the day-to-day MERS® System functions. Appears on Member Summary in MERS® OnLine and MERS® Link for the MERS® System Members and MERS® Link Subscribers to contact regarding property maintenance issues.Term Contact Types • Definition Accounts Billing (mandatory) Contact designated to receive monthly invoices and respond to billing inquiries. and keeping your Member Information (including Contacts) current. maintaining your organization’s User IDs and Roles. A Transferable Record as defined by ESIGN or UETA. etc.0 – 12/10/2012 Glossary • 199 . if not superseded by certain state laws otherwise authorizing such activities. contracts. When a loan becomes inactive on the MERS System for one of the following reasons: • Paid in Full (includes payoff. Uses the Registration transaction. deed in lieu. Document Type Definition. and other document features.) • Transfer to non-MERS Status • Involuntary transfer/default by Servicer • Involuntary transfer/default by Subservicer • Foreclosure Complete • Deactivated .Term organization to this contact) • Definition System Administrator Secondary Back-up for System Administrator Primary. and manage the list of MERS Signing Officer candidates included in each request. The system-to-system exchange of business transactions between one or more business partners in a standard format. short sale. Electronic Signatures in Global and National Commerce Act. • Conversion CRMS The process by which an iRegistration loan is converted to a Non-MOM loan if it is assigned to MERS. It defines and names the elements that can be used in the document. and other records in interstate and foreign commerce transactions. Electronic Data Interchange. EDI eNote ESIGN ETA MERS® System Procedures Manual – Release 23. The Corporate Resolution Management System. Electronic Tracking Agreement.Assigned from MERS for Default or Bankruptcy Deactivation Deactivation Reversal DTD The process for reactivating a MIN that was deactivated in error. A file that defines the “markup language” that will be used to describe the data. Technical (mandatory for Members using System to System connectivity) Person responsible for providing technical support to ensure compatibility of your internal system(s) with the MERS® System. A federal statute that establishes the legal validity and enforceability of electronic signatures. a web platform (operated by MERSCORP Holdings) wherein Members submit requests to MERS for a new/updated MERS Corporate Resolution. 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. the order in which the elements can appear. the element attributes that can be used. whichever is applicable. iRegistration* • Reinstated or modified (option 2)** • Reinstated or modified (option 3) • Foreclosure complete • Foreclosure status reset • Assigned from MERS for Default or Bankruptcy Flat File Format Flow Loan Registration Flow Transfer Foreclosure Status * This option is no longer available. this may be different from the date the borrower signs the note. In some states. MERSCORP Holdings defines flow as a Transfer Date 270 days or less after the Note Date. The following is a list of the MERS® System foreclosure statuses: • Foreclosure pending (option 2). “Foreclosure Complete. not assigned back to MERS-deactivation* • Reinstated or modified (option 1).” “Reinstated or modified (option 1). iRegistration • Reinstated or modified (option 1). There is no fee for this transaction nor limitation to the number of times a MIN can be included in Flow Transactions.” and “Assigned from MERS for Default or Bankruptcy” statuses deactivate the MIN. not assigned back to MERS. assigned back to MERS* • Reinstated or modified (option 1). The field reflecting the current status of a MIN in foreclosure on the MERS® System. MERS® System Procedures Manual – Release 23.Term FIPS Code Definition 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. FTP Funding Date File Transfer Protocol Funding Date is defined as the date the borrower becomes obligated for the debt and interest starts to accrue. **This option is only available as an update to a loan in pending (option 2) status. Members that are not X12 capable can use this format. This is the optional proprietary format for system-to-system input to the MERS® System. and the possessions and freely associated areas of the United States.0 – 12/10/2012 Glossary • 200 . not assigned back to MERS-deactivate. District of Columbia. A loan registered on the MERS System 270 days or less after the note date. retained on the MERS System* • Foreclosure pending (option 3). or the date the note is drawn. and system testing of transactions prior to being live in the MERS® System. The financial interest on a loan that an organization has prior to the sale of the loan to the permanent Investor.. reconveyance). training. Guarantees investors the timely payment of principal and interest on mortgage backed securities backed by federally insured or guaranteed loans. Loan registered on the MERS® System for information purposes only. or partnership organization which has signed and submitted a Membership Application to MERSCORP Holdings Inc. The GAL email address must be monitored daily by the Member. via telephone and email. Refers to any non-Member who requests information.Ginnie Mae Help Desk Integration Interim Funder Interim Funder Interest Intracompany Transfer Investor iRegistration Lender Lien Release Line of Business (LOB) Lockout Member MERS® System Procedures Manual – Release 23. Examples of organizations are warehouse lenders. who has chosen to have their secured interest in each loan represented in a way that only they can release on the MERS® System . The process by which a Member completes procedural changes. Wall Street firms. General Public Guarantor .0 – 12/10/2012 Glossary • 201 . The owner of the legal (or legal and beneficial/equitable) interest in a mortgage loan. The types of business in which a Member is active on the MERS® System.Term GAL Contact Definition The email address provided by the Member for Service of Process and other MERS® System communications. The payee on the note. a Member’s access to the MERS® System is temporarily blocked until the issue that caused the lockout has been resolved. These are listed in the Member’s Member Profile. and who has not completed Resignation. satisfaction. To change this email address. Process whereby. Appears in the Investor field although Ginnie Mae is neither the owner of the beneficial interest in the loan nor the securitization trustee. Organization with an interim financial interest on a loan prior to the sale of the loan to the permanent Investor. received an Organization Identification Number. and other parties that extend interim funding to originators. limited liability company. Transactions reflecting seasoned servicing transfers between the Org IDs named in a Parent/Child agreement are billed Intracompany Transfer fees rather than Seasoned Servicing Transfer fees. Only selected information will be accessible through an automated servicer identification system (SIS) and the customer must provide required information to activate and release requested information. and status with which. Provides support for the MERS® systems and procedures. A corporate entity. An instrument releasing the security interest recorded in the county land records (also discharge. and has been approved for Integration. to the MERS® System Members. the Member must contact the Help Desk. where MERS is not the mortgagee of record. and other relevant information.Term Member Profile Definition Information about a MERS® System Member that is required at the time of initial setup. MERS® Link also can be accessed via the American Land Title Association web site or through a subscription to the service A lender that has signed a MERS® System Member Agreement solely so that it can sell loans with MERS as the nominee for the lender on the security instrument to other MERS® System Members. A MERS Corporate Resolution is Org ID specific. Receives Integration Surveys. and the specific authorities granted to MERS Signing Officers are limited to loans registered to that Org ID on the MERS® System. An individual appointed by MERS (via a MERS Corporate Resolution) and granted limited authority to take certain actions as enumerated in the MERS Corporate Resolution on behalf of MERS. or grantee. A loan for which MERS is the mortgagee. Person responsible for managing the implementation and integration of the MERS® System process into the Member’s operations. Mortgage Electronic Registration Systems. and administrative access to the CRMS. Available to the public at www. An initiative to provide more transparency regarding residential mortgage loans. MERS MERS Corporate Resolution MERS Loan MERS Signing Officer MERS® MERS® eDelivery MERS® eRegistry MERS® InvestorID MERS® Link MERS® Lite Member MERS® OnLine MERS® Project Manager MERS® Servicer ID MERS® System Procedures Manual – Release 23. Browser-based access to the MERS® System to retrieve information about the current Servicer of a mortgage registered on the MERS® System. Inc. If supported by the Servicer. granting specifically identified persons the limited authority to take certain actions as enumerated in the resolution and on behalf of MERS. Browser-based access to servicer contact information for loans registered on the MERS® System. billing. beneficiary. MERS Signing Officers are formerly known as MERS “Certifying Officers.org. MERS acts as the mortgagee of record in the public land records and as nominee for the lender and its successors and assigns.. The browser-based interface used by a Member to access and update the MERS® System regarding mortgage loans.mers-servicerid.0 – 12/10/2012 Glossary • 202 . it may have a “hot link” to the Servicer’s website for Customer Service information. A system of record that identifies the owner (Controller) and custodian (Location) of the authoritative copy for registered eNotes. A resolution adopted by the board of directors of Mortgage Electronic Registration Systems. using the existing MERS® eRegistry infrastructure and transaction security requirements.” The trade name used by MERSCORP Holdings and MERS regarding products and/or services relating to MERS’s role as mortgagee. a Delaware corporation wholly owned by MERSCORP Holdings. The Member Profile indicates the Member’s MERS® System process preferences. A secure method for distributing eMortgage packages from one MERS® eRegistry Member to another. Lite Members are organizations who sell all loans “servicing-released” within 30 days of the Note Date. Inc. (formerly known as MERSCORP. MERS as the Original Mortgagee. A unique 18-digit number composed of the 7digit Organization Identification Number (Org ID). The field reflecting the reason for current status of a loan on the MERS® System. and CRMS. This person maintains your organization’s User IDs and Security Roles. Inc. the Delaware corporation that wholly owns and operates the MERS® System. it cannot be canceled. the date the borrower signs the note. In some states. and the check digit. Language written into security instruments that establishes MERS as the Original Mortgagee and nominee for the Lender. A loan for which MERS is the mortgagee through an assignment. Inc. the 10-digit sequence number. when delivery has been attempted to an Option 1 Investor. MIN MIN Archival MIN Status MOM My MERS Non-MOM Note Date Operational Contact Option 1 (beneficial rights) Option 1 MIN Cycling Option 1TOS (Default by Servicer) MERS® System Procedures Manual – Release 23. the MERS® eRegistry. Mortgage Identification Number. MERSCORP Holdings. This transaction is billed to the Investor. The cycle and reprocess occurs for 10 calendar days from the effective Transfer Date. using MIDANET or MORNET)..g. Once the X12 file is submitted. An Option 1 Investor may use this transaction to reflect a transfer of servicing on that Investor’s loans to another MERS® System Member Servicer due to default by the previous MERS® System Member Servicer. MERSCORP Holdings is the service provider for MERS. The MERS® OnLine functionality that allows Members to create a list of frequently used Org IDs. may or may not be the actual date on which interest begins to accrue (see Funding Date). Person(s) responsible for overseeing or conducting the day-to-day MERS® System functions The lender/seller of the beneficial interest initiates the transfer of beneficial rights outside of MERS (e.). The process that removes MINs that have been deactivated on the MERS System. including password resets.0 – 12/10/2012 Glossary • 203 . The automated transaction that reprocesses MINs that have been rejected due to reason of non-registration. or the date the note is drawn. Non-MOM loans include iRegistration loans subsequently converted to a Non-MOM. its successors and assigns. Person from the Member’s organization responsible for setting up unique User ID(s) for each person at your company needing access to MERS® OnLine. Note Date is the date on the Note. MERS® eDelivery.Term MERS® System MERS® System Administrator MERSCORP Holdings Definition An electronic registry owned and operated by MERSCORP Holdings that tracks changes in loan servicing and note ownership rights for registered mortgage loans. The Investor sends confirmation of the transfer to MERS through an X12 transaction. and leaves the loan active on the MERS® System. Limited information is still available on the MIN. Interim funding interests are released automatically when the X12 transaction is processed by the MERS® System. MERS® Commercial. and seasoned servicing transfer transactions between the included Org IDs are billed the Intracompany Transfer Fee rather than the Seasoned Servicing Transfer Fee. Only the parent Org ID is billed Membership fees. the Originating Organization must be a MERS® System Member. if not a MERS® System Member. MOM. See Flat File format. the current Investor. The original Lender on the Note. If the originator is a MERS® System Member. Then the new Investor confirms the transfer. 2012. May be different from the current borrower on a loan if the loan has been assumed.Term Option 2 (beneficial rights) Definition In the Option 2 process. The date that the loans are transferred in the MERS® System database. The loan originator. Each Member is responsible for ensuring that their internal policies for determining whether a property is owner occupied are reflected on the MERS® System. Servicer. This organization’s Org ID and Name are displayed as Originating Organization. The seven digits of the Org ID comprise the first seven digits of the 18-digit MIN. Y (property is owner occupied) or N (property is not owner occupied). The Org ID of the loan originator. that Member’s Org ID is entered in the Originating Org ID field. Optional EDI Format Organization Identification Number (Org ID) Original Borrower Original Note Holder Originating Org ID Originating Organization Owner Occupied Parent/Child Relationship Passive Investor Physical Transfer Date Pool Number Pre-Closing Post-Closing MERS® System Procedures Manual – Release 23. or Subservicer creates a beneficial rights transfer transaction. Displayed as Originating Organization. because only MERS® System Members are allowed to originate MOM loans as of that date. but a Pre-Closing may not be updated or included in any other transaction except Registration Reversal. required for securitization. Interim funding interests must be released separately. The number assigned to a grouping of loans by the Investor. or NonMOM when the loan closes. For MOM loans registered after March 31. The entity listed as the borrower on the original note. If the originator is not a MERS® System Member. May be registered as an active iRegistration. An Option 2 Investor that is a MERS® System Member but does not actively confirm transfers to or from it on the MERS® System. Transaction used to activate a loan previously registered as a Pre-Closing on the MERS® System when the loan closes. the originator’s name is entered in the Original Note Holder field and displayed for Originating Organization. Loan registered on the MERS® System before the note date with a status of PreClosing (not active). Relationship reflected on the MERS® System for Members who execute a Parent/Child Agreement. A seven-digit number uniquely identifying a Member Profile on the MERS® System. and its Org ID and Name are displayed for Originating Organization.0 – 12/10/2012 Glossary • 204 . This date will be the same as the Transfer Date unless the buyer does not confirm the transfer on time. 2012. This field is required for all MOM loans registered after March 31. The process of activating a previously deactivated MIN for the same borrower. MINs deactivated by Paid in Full or Foreclosure Complete cannot be reactivated. Property Preservation Company Property Preservation Contact Reactivation Recordation Registrar Registration Registration Reversal Resignation Resigned Member Resigning Member Sale Date (servicing rights) Seasoned Loan Registration Seasoned Transfer Security Instrument (SI) Sequence Number MERS® System Procedures Manual – Release 23. with approval from MERSCORP Holdings. MERSCORP Holdings defines “seasoned” as Transfer Date more than 270 days after the note date. the date the contractual servicing rights are transferred from seller to buyer. and otherwise completes the Rule 7 Resignation of Membership requirements. The 10-digit number assigned by the MERS® System Member to uniquely identify a loan. This date is stipulated in the Purchase and Sale Agreement. The process of reversing a loan that was registered in error. at some future date. Each additional borrower listed on the Note is a Co-Borrower for that loan on the MERS® System. deactivates their registered loans. The process of entering required information into the MERS System to report that a loan exists with MERS as the Mortgagee. The process by which a Member withdraws its membership from the MERS® System. May still be shown as a rights-holder on active loans registered on the MERS® System. A MERS® System Member with which a Servicer or Subservicer contracts to maintain a property. A Member who has completed its resignation of membership as required under the Procedures Manual but remains eligible to resume its membership and Org ID.0 – 12/10/2012 Glossary • 205 . and lien type. A loan registered on the MERS System more than 270 days after the note date. Contact for inquiries about maintenance of properties. security deed. A legal document creating an interest in or lien against property as collateral to protect or secure against non-payment of a debt. but not completed. A seasoned loan transfer fee is charged to the seller for seasoned servicing transfers. or to reflect an iRegistration. deed of trust. property. the Resignation process. A Member who has begun. or any such other instrument. a mortgage. The 10 digits of the sequence number comprise the 8th through 17th digits of the 18-digit MIN. The act of recording the loan assignment and/or security instrument in the public land records.Term Primary Borrower Definition The first borrower listed on the Note is the Primary Borrower for that loan on the MERS® System. A third party to whom a Member has contracted certain business activities such that the Registrar would be the initiator of the business activity that gives rise to a transaction on the MERS® System on behalf of the Member. In a servicing transfer. In response to Member inquiries regarding “good standing. it’s a method of transmitting information directly from a Member or vendor system to the MERS® System. Transaction used by an Option 1 Investor to reflect a Transfer of Servicing Rights on the MERS® System due to default by servicer. See Beneficial Rights Transfer. A terminated membership may not be reinstated under an existing Org ID. In some cases the Servicer may contract with a Subservicer. However. Process by which a Member’s membership is revoked by MERSCORP Holdings through the Termination of Membership process described in Rule 7. Transaction used to reflect a Transfer of Beneficial rights on the MERS® System. Telephone-based access to the MERS System.” the response shall be that the terminated Member in question is no longer a Member. An alternative to using MERS® OnLine. The date that the Investor. Transaction used to reflect a simultaneous transfer of beneficial rights and servicing rights to an Option 2 Investor. This membership category is available for an organization that will close loans in their name with MERS as original mortgagee (MOM loans). Transaction used to reflect a Transfer of Servicing rights on the MERS® System. Servicer or Subservicer creates the transfer transaction the MERS System. It allows anyone to query the system to obtain information on the current servicer on a MERS® System registered loan. These transfers are tracked for MERS® System Members on the MERS® System. The sale of servicing rights from the current Servicer to a new Servicer. the Servicer continues to be responsible for compliance with the Procedures with respect to the loans serviced. The Subservicer is not the legal owner of servicing rights. System to System Termination TOB TOS TOS Option 1 (default by servicer) TOS/TOB Combo TPO Transfer Cancellation Date Transfer Creation Date MERS® System Procedures Manual – Release 23.0 – 12/10/2012 Glossary • 206 . Third Party Originator. This includes flat files and EDI X12 transmissions. The ownership rights of the current Servicer for servicing loans.Term Servicer Definition The entity that possesses the contractual right to collect payments from a debtor and otherwise service a loan. This system was previously named the Voice Response Unit (VRU). See Servicing Rights Transfer. Servicer Identification System number: 888-679-MERS(6377) Servicer Identification System (SIS) Servicing Rights Servicing Rights Transfer SIS Number Standard EDI Format Subservicer Accredited Standards Committee X12 standard. Both flow and seasoned loans may be included in this transfer. The entity with whom the Servicer has contracted to perform certain servicing functions on behalf of the Servicer. but will not perform transactions or review reports on the MERS® System The date the transfer transaction is canceled on the MERS System if all MIN confirmations and rejections are not received. Transaction used to register loans on the MERS® System using an XML request. contracts. Uniform Electronic Transaction Act. In creating an XML document. and/or the Member no longer wishes to track it as an iRegistration on the MERS® System. A uniform form of statute that various states have enacted to establish the legal validity and enforceability of electronic signatures. etc. it may take the place of the provisions of ESIGN. The Warehouse/Gestation Lender has view only access to the loan on the MERS® System. when enacted by a state.) A MERS® System Member who performs various transactions on the MERS® System on behalf of another Member under a contractual agreement. Extensible Markup Language. Transaction used to look up information on loans matching search criteria entered using an XML request.Term Transfer Date (beneficial rights) Transfer Date (servicing rights ) Transfer to Non-MERS Status UETA Definition The date beneficial ownership of a loan is transferred from one Investor to another. the user creates and assigns the element names. A change to information outside of a previously defined business process (corrections. Update Vendor Warehouse/Gestation Lender X12 Format XML XML Inquiry XML Registration MERS® System Procedures Manual – Release 23. updates to previously null fields. In most cases this will be concurrent with the funding date by the new Investor. Transaction used to deactivate a loan on the MERS® System when it is assigned out of MERS. transferred to a Non-Member. and other records within the enforcing state. This is the recommended format for system-to-system transmissions to the MERS® System. XML is a markup language designed specifically for delivering information over the World Wide Web. the date the responsibility for servicing the loans passes from seller to buyer. Their interest in each loan is released automatically when servicing is transferred.0 – 12/10/2012 Glossary • 207 . A predefined non-proprietary layout at a transaction set level. Associated Member with an interim financial interest on a loan prior to the sale of the loan to the permanent Investor. According to the Purchase and Sale Agreement between the buyer and the seller. 0 (see draft for changes) Revised for Release 14.0 (see draft for changes) Revised for Release 18.0 – 12/10/2012 Glossary • 208 .1) and CRMS Procedures.0 (see draft for changes) Revised for Release 16.0 (see draft for changes) Revised for Releases 20.Revision History: Procedures Manual: Revision Date 8/10/12 Details Revised for Release 22.1 (see draft for changes) MERS® System Procedures Manual – Release 23. 2012. added 2012 Quality Assurance Requirements (22.0.0. Effective Date for implementation: October 10.1 to incorporate Quality Assurance Procedures Manual.0 (see draft for changes) 10/03/2012 Quality Assurance Procedures Manual: Revision Date 6/5/06 6/4/07 12/9/07 6/16/08 12/8/08 6/9/09 6/14/10 6/20/11 7/25/11 9/6/11 10/12/11 2/27/12 6/4/2012 7/16/2012 Details Revised for Release 12.0 (see draft for changes) Revised for Release 15.0 Revised for Rule 8 changes Revised for Release 20.0 Revised for Annual Report requirements changes Revised for Release 21.0 (see draft for changes) Revised for Release 22.0.0 (see draft for changes) Revised for Release 17. Revised for Release 23.0 (see draft for changes) Revised for Release 19.0 (see draft for changes) Revised for Release 22.0 and 21.