The MERS® Annual Report of Quality Assurance Standards Compliance is a report that is required by the Executive Sponsor for each Member Servicer or Subservicer each calendar year and requires the following:
- Procedures in place for assurance that the MERSCORP data for all MERS® System required and conditional reporting fields.
- Conducted system-to-system reconciliations for all MERS® System required and conditional reporting fields at the required frequency.
- All the required and conditional fields entered on the MERS® System match those values in Member’s internal system, and discrepancies and remediation activities necessary to align the two systems are tracked and monitored on aging reports until cleared.
- Practiced procedures designed to provide reasonable assurance that daily capture of all reject/warning reports associated with registrations, transfers, and status updates on open-item aging reports are addressed.
- Practiced procedures that are designed to provide reasonable assurance of compliance with the Rules and Procedures applicable to the MERS® Signing Officers.
- Active monitoring of performance against Member’s Quality Assurance Plan and has reviewed the plan at least annually for effectiveness and has revised the plan as necessary.
- Documentation of any exceptions to the above conditions.
The Annual Report is due by December 31 and may be completed by an independent control function inside your organization like a corporate compliance risk manager or by an independent quality control company not affiliated with member’s organization.
Lite Members are not required to submit an Annual Report of MERS® System Quality Assurance Standards Compliance. However, if a Lite Member is upgraded to General membership status because they are servicing one or more loans for more than 90 days, they become responsible for all Member Servicer requirements as soon as they are upgraded.
Due to the revised format of this Annual Report, there is an updated QA manual and QC Plan.