Mortgage Electronic Registration System (MERS®)

As the number of foreclosures increase, the focus has turned to the servicing of mortgage loans. It is in the best interest of all servicers to avoid challenges in the foreclosure process by implementing “best practices” and putting quality control checks in place. MERS® is an important aspect of Loan Servicing. Quality Mortgage Services, LLC offers our clients a specialized audit which targets information reported to Mortgage Electronic Registration System (MERS®).

MERS® Compliance Reviews

Because of the uproar in the mortgage loan servicing world, some actions require mortgage servicers to correct other deficiencies in residential mortgage loan servicing and foreclosure practices. Many mortgage servicers are correcting these deficiencies by the use of servicing quality control companies that enhance oversight of foreclosure service providers. The consulting of the mortgage servicing functions has gone as far as evaluating management information systems associated with mortgage servicing and foreclosure processing as well as the mortgage loan servicing consulting for the assessment to improve communication with the customer by establishing a single point of contact in order to prevent problems wherein the mortgage servicers are pursuing foreclosures even when a borrower may have been approved or when the borrower is performing under the terms of a loan modification or trial modification.

Mortgage servicing quality control will now require an independent mortgage servicing quality control company to conduct the mortgage servicing review. The mortgage servicers are required for corrective actions as the expectations are discovered.

Compliance with MERS®

Quality Mortgage Services, LLC offers our clients a specialized audit which targets information reported to Mortgage Electronic Registration System (MERS®).

MERS® is a mortgage industry utility which tracks servicing rights for loans registered on the MERS® System. MERS® acts as the mortgagee of record in the public land records and as nominee for the lender and its successors and assigns.

FNMA reiterated its policy (SEL-2011-04) on May 24, 2011 regarding MERS® Fannie Mae requires lenders to report the valid, registered MERS® Mortgage Identification Number (MIN) for mortgages originated with MERS® as the nominee for the mortgagee or assigned to MERS®. Fannie Mae requires that document custodians must be able to identify MERS® registered mortgages; lenders must have controls to readily identify MERS® registered mortgages; MERS® cannot be named as the insured or loss payee on title and property insurance policies; and by delivering the MIN, the lender warrants that the mortgage is properly registered in MERS® and names the lender as the investor.

Data integrity is key to ensuring smooth processes in the sale, transfer and conveyance of the Note or Security Instrument. Let QMS provide you with the comfort that the data reported is accurate and the process conforms to agency requirements.