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Point of View: Assignments Becoming A Thing of the Past.
Mr. McLaughlin is executive vice president of MERS, the industry-owned utility for tracking ownership interests in mortgage loans and servicing rights.
An article in the April 2007 issue of Mortgage Servicing News entitled "The Snoozeth-Looseth Doctrine" discussed problems caused by a failure to promptly record an assignment of a mortgage. With the use of Mortgage Electronic Registration Systems Inc., the need for assignments is a thing of the past.
Today, the assignment-related scenario painted in the April issue has been eliminated for the 3,000-plus members of MERS that trade mortgages with other members. As of this writing, MERS members have avoided the woes described in the article on nearly 50 million loans.
The MERS concept works whether a loan is sold once, several times, or not at all. It also works if the loan is a subordinate lien. It works while the loan is performing and if it goes to foreclosure. Here's how: a mortgage company originates a loan naming MERS as the mortgagee of record on the security instrument using the Fannie Mae and Freddie Mac-approved language. When this document is sent for recording, MERS becomes the mortgagee of record. The lender registers the loan on the MERS system and identifies the current servicer at the time of registration. When the loan is sold, the registration record is updated by the relevant trading partners to reflect the new servicer and/or investor on the loan. No assignments are needed because MERS remains as the mortgagee of record for the life of the loan.
Current servicer information on the MERS system is accessible to the public via a toll-free number (888 679-6377) or by accessing Servicer ID, our Web-based solution at www.mers-servicerid.org. This information can be accessed by anyone, anywhere, anytime for loans registered on the MERS system.
Turning to the case described in the April article regarding negligence in recording assignments, let's see how MERS could have helped.
The case involved the holder of a second ...
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- Press release article from: Business Wire April 26, 2004 700+ words
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- News wire article from: The America's Intelligence Wire February 19, 2007 700+ words
...on how to e-sign PDFs in a manner that MERS will accept them as binding e-notes...out R.K. Arnold, president and CEO at MERS. "One of the requirements when e-notes...The question we were getting was is the MERS system ready to accept PDF? The answer...
- MERS, Inc. announces marketing alliance with Stewart Title.
- Press release article from: Business Wire November 1, 1996 700+ words
...Electronic Registration Systems, Inc. (MERS) announced the formation of a strategic...alliance to accelerate the early usage of MERS by the mortgage finance industry. Stewart...Partners Ltd., and MGIC will jointly market MERS through their established sales and marketing...
Source: HighBeam Research, Point of View: Assignments Becoming A Thing of the Past.