Mortgage Electronic Registration Systems, Inc. is a privately held corporation that serves as a nominee on mortgages. After the century, the corporation is no longer a party to the mortgage, but rather serves as a nominee. This is a major advantage for borrowers. It provides a single point of contact for mortgages and makes the entire process easy and hassle-free.
The system’s centralized database allows title companies and consumers to determine who owns mortgages. It also enables real estate professionals to obtain a discharge on a loan. It can also help identify mortgage fraud or owner-occupancy issues. The centralized database can also be used to detect property flipping schemes.
The company’s mission is to protect consumers from fraudulent mortgage companies and to increase mortgage funding. MERS is a private corporation that monitors mortgage rights across the country. It is owned by several mortgage finance companies and is registered in Delaware. Its main office is in Reston, Virginia. The company is a subsidiary of MERSCORP Holdings, Inc.
The MERS system is a nationwide database that complements centuries-old public land-recording systems. As of 2007, the MERS system held two-thirds of all home loans in the U.S. This makes it a vital tool in the real estate finance industry. If you’re considering getting a mortgage, it may be a good idea to check whether the company is registered in Delaware.
MERS is a national electronic registry that tracks the transfer of ownership interests and servicing rights for mortgage loans. Participating mortgage lenders must apply to be a member of MERS. Membership fees are charged to MERS. These fees help MERS pay for its services. In addition to tracking mortgage loan ownership, MERS also acts as a mortgagee of record for the participating members.
However, not all mortgages are recorded electronically. Before MERS was created, mortgage bankers had to manually record mortgage transfers. County land records had to be searched and recorded. This process cost both time and money, and many recording offices could not keep up with the volume of recorded transactions. However, MERS database eliminates the need to search and pay for manual records. Instead, changes in ownership can be registered electronically and avoid the need for recording fees.
Before a mortgage is registered in MERS, it must be assigned to a MERS mortgage servicer. The MERS servicer then enters the loan into the MERS database. MERS can also be designated as the mortgagee of record in the county recorder’s office. This is important, because MERS becomes the assignee of record for the life of the mortgage.