Mortgage Electronic Registration Systems (MERS) is a privately held company and is designed to track servicing rights as well as ownership of mortgage loans in the United States. The entity serves as the mortgagee of records for loan servicers, lenders, and investors in the county land records. MERS claims that it helps in eliminating the need for filing assignments in county land records and reduces costs for consumers as well as lenders. It does so by mitigating county recording revenues from real estate transfers in addition to providing a central tracking and information source for mortgage loans.

• Information enclosed in the MERS System can assist in identifying probable mortgage fraud involving the identity of a potential buyer and owner-occupancy issues. The centralized database of MERS can also facilitate in discovering property flipping plots and procurements conducted on behalf of ‘straw buyers’ in search of defrauding lenders and sellers. Created by MERS, the Mortgage Identification Number (MIN) is an exclusive 18-digit number that is utilized to track a mortgage loan throughout its life, from the beginning to securitization to payoff or foreclosure.
• The MERS eRegistry is a system of record that identifies the possessor (Controller) and custodian (Location) for registered eNotes. Constructed by MERS with the support of the Mortgage Bankers Association and commenced in 2004, the MERS eRegistry meets the “safe harbor” requirements of E-SIGN and UETA legislation. Both Fannie Mae and Freddie Mac necessitate the registration of eNotes on the MERS eRegistry ahead of purchase they are eligible for.
• Through MERS ServicerID, homeowners can seek out their mortgage servicer, not considering whether the mortgage has changed hands since the loan was created. By recognizing the loan servicer, homeowners might try to find their lender to begin negotiations for amended mortgage terms and take actions that can circumvent foreclosure.
• In February 2009, MERS was chosen to administer the everyday business of the Mortgage Industry Standards Maintenance Organization (MISMO), even though the Mortgage Bankers Association will carry on its full control over MISMO. MBA President and CEO John A. Courson said the selection of MERS as a managing partner “will result in the continued enhancement of data standards and transparency, which are critical to the return of investor confidence and liquidity in our marketplace.” More information about the company can be found on their website mersinc.org.

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