MERS System Procedures Manual - the ICE

1 MERS System Procedures Manual Release Effective Date: July 26, 2021 2021 MERSCORP Holdings, Inc. All rights reserved. MERS System Procedures Manual Release i Contents INTRODUCTION .. 1 CONVENTIONS IN USE IN THIS DOCUMENT ..1 MERS System OVERVIEW ..1 Types of Loans Registered on MERS System .. 1 MERS Loans .. 2 Registering Loans before Closing .. 2 Other MERS System 2 MIN Record 3 SUPPORTING MERS System MEMBERSHIP .. 5 REQUIREMENTS: MERS System MEMBERSHIP ..5 Loans Closed by a Lite-R Member .. 5 Requirements: Loans Closed by a Lite-R 6 PROCEDURE: MEMBER INTEGRATION ..6 MEMBERSHIP CHANGES ..6 Requirements: Membership Changes .. 6 Procedure: Membership Changes .. 7 MEMBER INFORMATION ..7 Requirements: Maintaining Member Information .. 7 Procedure: Maintaining Member Information .. 8 Information Maintained by MERSCORP.

2 9 MEMBER RESIGNATION ..9 Requirements: Member Resignation .. 9 Procedure: Member 11 Certificates of Ownership .. 11 Procedure: Certificates of Ownership .. 11 System Actions: Certificates of Ownership .. 12 MERS ONLINE USER AUTHENTICATION .. 13 MERS System USER REQUIREMENTS: System SECURITY ..14 THIRD-PARTY VENDORS ..14 ASSOCIATED XML AND BATCH INQUIRY TRANSACTIONS ..15 MORTGAGE IDENTIFICATION NUMBER ( MIN ) .. 16 PROCEDURE: CREATING A MIN ..16 loan REGISTRATION .. 17 REQUIREMENTS: loan REGISTRATION ..17 Requirements: All loan Registrations .. 17 Requirements: MOM loan Registrations .. 18 MERS System Procedures Manual Release ii Requirements: Non-MOM loan Registrations .. 18 REQUIREMENTS: MERS System DATA INTEGRITY ..18 Procedures : loan Procedure: MERS loan Registration .. 21 Procedure: Completing a Pre-Closing Registration.

3 22 Procedure: Re-registration after Reversal .. 22 Procedure: Re-registration after Deactivation .. 23 System ACTIONS: loan REGISTRATION ..23 REGISTRATION REVERSAL ..25 Requirements: Registration Reversal .. 25 Procedure: Registration Reversal .. 26 System Actions: Registration Reversal .. 27 INTERIM FUNDING INTERESTS .. 28 REQUIREMENTS: REMOVING AN INTERIM FUNDING ORG PROCEDURE: REMOVING AN INTERIM FUNDING ORG ID ..28 System ACTIONS: REMOVING AN INTERIM FUNDING ORG TRANSFERS .. 30 TRANSFER OF BENEFICIAL Requirements: TOB Transactions .. 31 TOB Option 1 Transfer .. 31 Procedure: TOB Option 1 Transfer .. 32 System Actions: TOB Option 1 Transfer .. 32 TOB Option 2 Transfer .. 33 Procedure: TOB Option 2 Transfer .. 34 System Actions: TOB Option 2 Transfer .. 34 TRANSFER OF servicing Requirements: TOS 37 Procedure: TOS Transaction.

4 38 System Actions: TOS Transaction .. 39 TOS/TOB COMBINATION ..41 Requirements: TOS/TOB Combo Transactions .. 42 Procedure: TOS/TOB Combo 42 System Actions: TOS/TOB 43 MEMBER-TO-MEMBER PETITIONS ..45 Requirements: Member-to-Member 45 Procedure: Member-to-Member 45 MEMBER NOTICE OF DEFAULT ( NOD ) DISPUTE ..46 Procedure: Member NOD Dispute .. 46 MIN RECORD DEACTIVATION .. 47 PAID IN FULL DEACTIVATION ..48 Requirements: Paid in Full Deactivation .. 48 Procedure: Paid in Full Deactivation .. 48 System Actions: Paid in Full 49 TRANSFER TO NON-MERS STATUS DEACTIVATION ..49 MERS System Procedures Manual Release iii Requirements: Transfer to Non-MERS Status Deactivation .. 49 Procedure: Transfer to Non-MERS Status Deactivation .. 50 System Actions: Transfer to Non-MERS Status Deactivation .. 50 DEACTIVATE-ASSIGNED FROM MERS FOR DEFAULT OR BANKRUPTCY DEACTIVATION.

5 50 Requirements: Deactivate-Assigned from MERS for Default or Bankruptcy 50 Procedure: Deactivate-Assigned from MERS for Default or Bankruptcy 51 System Actions: Deactivate-Assigned from MERS for Default or Bankruptcy Deactivation .. 51 FORECLOSURE COMPLETE DEACTIVATION (INITIATED BEFORE 7/22/11) ..52 Requirements: Foreclosure Complete Deactivation .. 52 Procedure: Foreclosure Complete Deactivation .. 52 System Actions: Foreclosure Complete Deactivation .. 53 DEACTIVATION Requirements: Deactivation Reversals .. 53 Procedure: Deactivation Reversals .. 54 System Actions: Deactivation Reversals .. 54 MODIFICATION 55 REQUIREMENTS: MODIFICATION AGREEMENTS ..55 PROCEDURE: MODIFICATION AGREEMENTS ..55 System ACTIONS: MODIFICATION AGREEMENTS ..55 CONSTRUCTION AND CEMA LOANS .. 56 REQUIREMENTS: CONSTRUCTION AND CEMA LOANS ..56 Procedures : CONSTRUCTION LOANS.

6 56 Procedure: Construction loan Modified to Become Permanent .. 56 Procedure: Construction loan Paid off by Permanent loan .. 57 PROCEDURE: CEMA loan System ACTIONS: CONSTRUCTION AND CEMA LOANS ..57 ASSUMPTION OF MORTGAGE .. 58 REQUIREMENTS: ASSUMPTION OF MORTGAGE ..58 PROCEDURE: ASSUMPTION OF MORTGAGE ..58 System ACTIONS: ASSUMPTION OF MORTGAGE ..58 PROPERTY PRESERVATION .. 59 PROCEDURE: PROPERTY PRESERVATION MEMBER PROCEDURE: PROPERTY PRESERVATION MIN UPDATES ..59 System ACTIONS: PROPERTY PRESERVATION ..59 MERS System QUALITY ASSURANCE PROGRAM .. 61 REQUIREMENTS: MERS System QA MERS System QA Requirements: MERS System QA 61 Procedure: MERS System QA Plan 62 ANNUAL REPORT ..62 Requirements: Annual Report .. 62 Procedure: MERS System Annual Report Submission .. 63 MERS System Procedures Manual Release iv DATA RECONCILIATION.

7 63 Requirements: Data Reconciliation .. 63 Member Reconciliation Extract (MRE) .. 64 MERS loan Data Reconciliation Requirements .. 64 Conditionally-Required Field Criteria .. 65 QUALITY ASSURANCE REVIEWS ..67 Requirements: Quality Assurance Reviews .. 67 MERSCORP MAIL SERVICES .. 68 REQUIREMENTS: SERVICE OF PROCESS AND OTHER MAIL ..68 PROCEDURE: UNIDENTIFIED MAIL ..68 CORPORATE RESOLUTION MANAGEMENT System ( CRMS ).. 70 REQUIREMENTS: PROCEDURE: REQUESTING A CORPORATE RESOLUTION APPOINTING SIGNING OFFICERS ..72 PROCEDURE: SIGNING OFFICER CERTIFICATION ..73 PROCEDURE: RULE 3 EXCEPTION ..74 PROCEDURE: REQUESTING A SIGNING AUTHORITY AGREEMENT ( SAA ) ..75 PROCEDURE: TERMINATING A SIGNING AUTHORITY AGREEMENT ( SAA ) ..75 PROCEDURE: DEACTIVATING THE MEMBER'S CRMS ACCOUNT ..76 PROCEDURE: QUARTERLY ATTESTATION ..76 System ACTIONS: CRMS STATUSES FOR ORG IDS AND SAA RELATIONSHIPS.

8 77 System ACTIONS: CHANGES IN STATUS OF MERS System MEMBERSHIP ..78 System ACTIONS: AUTO-SUBMISSION OF REQUEST FOR A CORPORATE RESOLUTION ..78 MERS DOCUMENTS .. 80 REQUIREMENTS ..80 General Requirements .. 81 Document-Specific Requirements .. 84 State-Specific 86 BORROWER 88 REQUIREMENTS: BORROWER PROCEDURE: BORROWER DISPUTES ..88 DISCIPLINARY ACTIONS .. 89 LOCKOUT STATUS ..89 MERSCORP HELP DESK .. 90 CONTACTING THE HELP DESK ..90 RECEIVING EMAIL COMMUNICATIONS FROM MERSCORP ..90 MERSCORP AND MERS EMAIL 93 REQUIREMENTS: MERS System REPORTS ..94 PROCEDURE: RETRIEVING REPORTS ..94 INVOLUNTARY TOS TO A MERS System MEMBER .. 95 MERS System Procedures Manual Release v PROCEDURE: INVOLUNTARY TOS (OPTION 2 INVESTOR) ..95 PROCEDURE: INVOLUNTARY TOS (OPTION 1 INVESTOR) ..95 System ACTIONS: INVOLUNTARY TOS TRANSACTION ..96 GLOSSARY.

9 97 APPENDIX A: MERS SIGNING OFFICER 110 APPENDIX B: TRACKING IREGISTRATION LOANS ON MERS 125 REQUIREMENTS: IREGISTRATION LOANS ..125 Procedures : IREGISTRATION LOANS ..126 Procedure: iRegistration loan Registration .. 126 Procedure: iRegistration to Non-MOM Conversion .. 127 Procedure: iRegistration for REO Property .. 127 Procedure: Completing a Pre-Closing iRegistration .. 128 Procedure: iRegistration after Reversal .. 128 Procedure: iRegistration after 128 IREGISTRATION TRANSFER TRANSACTIONS ..128 IREGISTRATION loan DEACTIVATION ..129 Tracking iRegistration Foreclosure Activity .. 129 IREGISTRATION DATA RECONCILIATION REQUIREMENTS ..129 MERS System Procedures Manual Release Introduction 1 Introduction The MERS System Procedures Manual ( Procedures ) forms part of the Governing Documents that govern the relationship between each Member, the MERS Entities, and MERS System .

10 The Procedures set out requirements pertaining to MERS System membership including, but not limited to, the use of MERS System , the MERS System Quality Assurance Program, MERS Documents, the use of the Corporate Resolution Management System ( CRMS ), and Mortgage Electronic Registration Systems, Inc. ( MERS ) Signing Officers. This version of the Procedures replaces and supersedes, in their entirety, any and all previously published Procedures in place up to the effective date noted on the cover page. Each Member is bound by the Procedures and any amendments made to it. If a Member believes that there is a conflict between the requirements set forth in the Procedures and the requirements of any trading partner or jurisdiction, the Member should contact the MERSCORP Holdings, Inc. ( MERSCORP ) Help Desk at Conventions in Use in This Document Certain terms or items in this document have special formatting applied to them: o MERS System Reports: MERS System reports are formatted in italic font ( , Registration Rejects/Warnings (RG) Report).