Quality Assurance

Procedures Manual

Release 19.05
June 14, 2010Draft
Table of Contents
MERS Quality Assurance Policy 1
Purpose ..................................................................................................................... 1
Strategy ..................................................................................................................... 2
Monitoring ................................................................................................................ 2
Independent Attestation ............................................................................................. 2

MERS Processing Standards 4

Overview ................................................................................................................... 4
MERS as Original Mortgagee (MOM) Security Instrument Processing Standards ..... 4
Non-MOM Security Instrument Assignment Processing Standards ........................... 5
iRegistration Processing Standards ............................................................................ 5
Additional Recordable Documents Processing Standards ........................................... 6
Security Instrument Processing Standards ................................................................. 7
Lien Release Processing Standards............................................................................. 8
Foreclosure Processing Standards .............................................................................. 8
Deactivation Processing Standards ........................................................................... 10
Member Information Update Standards .................................................................. 10
Data Integrity Standards ......................................................................................... 10
Monthly Reconciliation Standards ........................................................................... 13

Appendix A 16
MERS Quality Assurance Review ............................................................................ 16
Checklist Items.................................................................................................. 16
MOM Security Instrument Document Review...........................................................16
MERS Assignments Document Review .....................................................................16
MERS® iRegistrations Document Review ................................................................17
Data Integrity Standards .............................................................................................20
Member Information Standards ..................................................................................20

Appendix B 21
Sample Documents for MOM Loans and Loans Assigned to MERS .......................... 21
Sample Changes to MERS as Original Mortgagee (MOM) Document ....................... 23
Sample Corrective Affidavit for Assignment ............................................................ 24
Sample Corrective Affidavit for Security Instrument ............................................... 25
Sample Loan Security Agreement ............................................................................ 26
Sample UCC-1 Naming MERS as the Original Secured Party .................................. 27
Sample UCC-3 Assigning Security Interests to MERS .............................................. 28
Sample UCC-3 Assigning Security Interests from MERS.......................................... 29
Sample of UCC-3 Termination, When Debt is Paid in Full........................................ 30

Glossary 31

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 MERS Quality Assurance Policy

Purpose
MERS provides value to your company by eliminating the need to prepare and record
assignments when your company sells or buys the beneficial (investor) interest and/or servicing
rights to/from another Member. The primary value to the seller is eliminating the cost of
preparing and recording assignments. The primary value to the buyer of the beneficial interest is
eliminating the cost of tracking and storing assignments, and in providing best execution for the
seller. The primary value to the buyer of the servicing rights is reducing post closing,
foreclosure and lien release costs due to the grounding of title in the name of MERS.
If the servicer sells the servicing rights in the future to another MERS Member, it eliminates the
cost of preparing and recording assignments. In the case of Ginnie Mae pools, it also eliminates
the cost of endorsing the notes to the buyer.

So that buyer and seller realize the full value of MERS, the MERS Processing Standards are
designed to ensure that:

• A valid MIN is assigned to the loan and affixed in the proper location on the Note, MOM
security instrument, or assignment to MERS

• MERS is rapidly and accurately recorded in the county land records as mortgagee after loan
origination or, assignment to MERS, or acquisition of servicing

• The corresponding loan information is rapidly and accurately registered on the MERS
System after origination, assignment to MERS, or acquisition of servicing

• When beneficial or servicing rights are sold to another Member, the seller and buyer rapidly
update the MERS System to reflect the new ownership interests

• When a loan is foreclosed, paid off, or servicing is sold to a non-MERS Member, MERS is
quickly released in the county land records as the mortgagee of record and the MIN assigned
to the loan is affixed in the proper location on the lien release document or assignment from
MERS to the buyer

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Strategy
Your company committed to abide by the MERS Processing Standards by signing the Member
Agreement. The current servicer of a loan for which MERS has been named mortgagee inherits
from the seller the responsibility for meeting the MERS Processing Standards.

MERS will provide the knowledge, training, and tools (or assistance in creating tools) that ensure
the quality of generating MINs, preparing and recording documents, and the information on the
MERS System.
MERS expects your company to integrate the MERS Processing Standards into your everyday
business practices. We expect you to self-audit your performance against the MERS Processing
Standards by developing a quality assurance plan that is designed to meet or exceed the
standards (for a sample MERS Quality Assurance Plan you may use the sample MERS Quality
Assurance Plan as a model in creating the plan for your organization, click here). We require
that you keep your most recent MERS Quality Assurance Plan on file with MERS. We expect
your company to regularly conduct monthly internal reviews reconciliations to monitor your
performance, against the plan, and to and review theyour plan at least annually for accuracy and
effectiveness. We require an annual independent attestation to the control structure of your
organization’s monthly system to system reconciliation process, reject/warning report process,
and adherence to your organization’s MERS internal Quality Assurance Plan at least annually.

Monitoring
To monitor the effectiveness of our Members’ training, tools, and procedures, we the MERS
Product Performance Department periodically select Members for a conducts quality assurance
review based on their relative risk to MERS and other MERS Members. bi-annual Member data
reviews. Member compliance reviews may be conducted on-site at MERS’ discretion. Please see
Appendix A for a sample of the type of information that we typically request during a Quality
Assurance Review.

Independent Attestation
The Attestation of MERS Quality Assurance Standards Compliance required annually from each
Member attests to your reconciliation of all required and applicable conditional fields to the
MERS® System fields at least monthly, that all required and applicable conditional fields entered
on the MERS® System match those values in your internal system, and that your reconciliation
includes a system-to-system comparison of your portfolio to the MERS® System and the MERS®
System to your portfolio. It also attests to your reconciliation at least monthly of the portfolio
analysis report against registrations, transfers, paid in full MINs, foreclosures and Transfers to
non-MERS Status. And it attests that you have reconciled all mandatory reject warning reports,
and that you have monitored your performance against your Quality Assurance Plan and have
reviewed the plan at least annually for accuracy and effectiveness.

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Your annual attestation must be executed by an independent auditor and delivered to MERS
within 90 days of your membership anniversary date.

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 MERS Processing Standards
Overview
As the MERS System was being developed, industry participants agreed there were no
industry-wide standards for the processing of assignments and lien releases. Without standards,
many assignments and lien releases were not recorded in a timely manner, were improperly
recorded, or were never recorded at all. This created a number of problems and costs for buyers
and sellers of servicing rights. The majority of mortgage industry participants that helped MERS
define standards for processing recording documents believed the entire industry would benefit.
Creating recording and lien release processing standards is important because:
1. The ability of MERS Members to sell mortgage loans to each other without recording
assignments is contingent on MERS being properly recorded as the mortgagee in the county
land records.
2. Likewise, recording of documentsThe accuracy of the information entered into the MERS®
System affects the ability of MERS to immediately and correctly identify the party to whom
service of process should be directed.
3. To benefit consumers, and to avoid the possibility of MERS and its Members being assessed
penalties for not having liens released in a timely manner, liens must be released as soon as
possible after a loan is paid off.
Following are the MERS standards established for Member processing of MOM security
instruments, assignments for non-MOM security instruments, lien releases and data integrity.

MERS as Original Mortgagee (MOM)

Security Instrument Processing Standards
• You must name MERS as mortgagee in accordance with investor guidelines and include the
Servicer Identification System telephone number (888-679-6377) in the MERS as Mortgagee
language. Sample MOM language is included in Appendix B.
• Place the Mortgage Identification Number (MIN) in a visible location on the first page of the
security instrument, but not in any space reserved for the jurisdiction’s recorder per
jurisdictional requirements. In all cases, county recorder requirements take precedence over
the MERS requirements.
• Send the security instrument for recording within seven calendar daysin accordance with
state or investor guidelines. If the jurisdiction doesn’t require recording, the security
instrument, MERS must still be namrecorded in the county land records in accordance with
the MERS Rule of Membership. of the Note Date or Funding Date.
• For originations, the originator must register the loan with a MOM security instrument on the
MERS System within ten seven calendar days of the Note Date or Funding Date.

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• If a loan with a MOM security instrument is purchased before registration, the buyer must
ensure that the loan is registered on the MERS System within ten 14 calendar days of the
purchase (funding) date.
• If a loan is registered but does not close, and the Security Instrument is not recorded in the
county land records, reverse the registration on the MERS® System within ten calendar days
the same day the error is discovered.of discovering the error.

Non-MOM Security Instrument

Assignment Processing Standards
Prepare the assignment document naming MERS as mortgagee. Place the MIN and Servicer
Identification System telephone number (888-679-6377) in a visible location on the first page of
the assignment, but not in any space reserved for the jurisdiction’s recorder per jurisdictional
requirements. In all cases, county recorder requirements take precedence over the MERS
requirements. A sample of an assignment is included in Appendix B.
• Register (or convert from iRegistration to Non-MOM) the loan being assigned to MERS on
the MERS® System within 14 seven calendar days of the effective transfer date. The
effective transfer date is the date defined in the Purchase and Sale Agreement on which the
buyer begins servicing the loans on its servicing system or, for loans assigned into MERS by
the originator or Purchaser, the assignment date.
• For all loans assigned to MERS, send the assignment for recording no later than 14 calendar
days after the Registration Date on the MERS Systemensure MERS is named as Assignee
in accordance with the MERS document standards in the county land records.
• Update the Assignment Sent Date field on the MERS System within five calendar days of
sending the assignments to the county recorder. You cannot update assignment recording
information on the MERS System until you populate the Assignment Sent Date field on the
MERS System.
Note: MERS requires the Member and/or assignment provider to have on file the details for
any exceptions where the Member or provider was not able to meet the expected timeframes,
whether due to county recorder requirements or lack of sufficient information to complete the
assignment.
• If a loan is registered but does not close, or is never assigned to MERS, and the documents
are not recorded in the county land records, reverse the registration on the MERS® System
the same day the error is discoveredwithin ten calendar days of discovering the error.

iRegistration Processing Standards

• Ensure MERS is not the current mortgagee or assignee.
• If MERS is the original mortgagee on the security instrument, ensure an assignment out of
MERS has been recorded.

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Additional Recordable Documents Processing
Standards
Place the MIN and Servicer Identification System telephone number (888-679-6377) in an area
that is under or close to your company’s loan number on the document, unless that placement is
not in compliance with county recorder requirements. In all cases, county recorder requirements
take precedence over the MERS requirements. See Appendix B for sample changes to
documents and links to sample documents.
• Enter the additional loan information (Modification,(e.g. Assumptions, etc.) on the MERS®
System within seven calendar days of its effective date, or of the Registration Date if later.
• Enter the recording information on the MERS® System within six months of the effective
date, or within seven calendar days of the Registration Date if later.

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Security Instrument and Recording Information
Processing Standards
Note: The current sServicer and Subservicer isare responsible to MERS for ensuring that all
security instrument and recording information is entered. However, your trading partner
agreements may require you to update recording information when it is received even if the loan
has already been transferred.
• For all MOM loans, you must enter the security instrument information on the MERS
System all the security instrument and recording information within thirty (30) calendar
days* at the time of the Registration. Date. This includes:
• MOM Indicator set to MOM
• Originating Org ID
• Mortgagee/Beneficiary
• Security Instrument Type
• Trustee (for Deed of Trust)
• Recording Date
• Instrument or Document Number
• Book or Liber
• Page or Folio
• Recording Type (Recording or Re-Recording)
• For all loans assigned to MERS, you must enter all security instrument and assignment
information on the MERS System all security instrument, and assignment, and recording
information within six months* sevensixty calendar days of the Registration Dateeffective
transfer date or Security Instrument or Assignment date. This includes:
• MOM Indicator set to Non-MOM
• Originating Organization
• Originating Org ID if originated by MERS Member
• Original Note Holder if originated by non-MERS Member
• Mortgagee/Beneficiary
• Security Instrument Type
• Trustee (for Deed of Trust)
• Recording Date
• Instrument or Document Number
• Book or Liber
• Page or Folio
• Recording Type (Recording or Re-Recording)
• Assignee and Assignor Names
• For all modified MOM and Non-MOM loans, you must receive and enter on the MERS
System all modification agreement recording information within six months* of the
Modification Date, or within seven calendar days of the Registration Date if later.
• For all MOM and Non-MOM loans, set the Quality Review Flag to Y on the MERS System
within 12 months of the Registration Date. In setting the Quality Review Flag to Y, you
warrant that you have entered all security instrument, assignment, and modification recording
information correctly on the MERS System, there is a complete chain of title with MERS

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 recorded as the final mortgagee, and you have performed a quality control check to verify the
integrity of the data that you entered. (See Data Integrity Standards for the items required for
certification.)
*MERS grants an exception to the recording standards for those counties where recording time
frames exceed the established MERS standards. You are expected to receive and enter all
recording information within 3 months of the average recording time for these counties.
• For all MERS® iRegistration loans, you must enter all security instrument information on the
MERS System within sixty calendar days of the Registration date. This includes:
• MOM Indicator set to iRegistration
• Originating Organization
o Originating Org ID if originated by MERS Member
o Original Note Holder if originated by non-MERS Member
• Mortgagee/Beneficiary
• Security Instrument Type

Lien Release Processing Standards

• Change the MIN status to “paid in full” and enter the Effective Payoff Date on the MERS
System within seven four calendar days of payoff of the loan on your company’s servicing
system.
• For MOM and Non-MOM loans:
• Prepare the lien release document with MERS as mortgagee. Place the MIN and Servicer
Identification System telephone number (888-679-6377) in an area that is under or close
to your company’s loan number on the document, unless that placement is not in
compliance with county recorder requirements. In all cases, county recorder
requirements take precedence over MERS requirements. An example of a lien release is
included in Appendix B.
• Send the lien release document for recording no later within state-imposed time frames
and per the MERS rRules of Membership, Members must record an instrument of
satisfaction releasing MERS from the lien.
• than 45 calendar days after the effective payoff date.
• Note: Send lien releases to the county recorder within the state-imposed time frames
established for the applicable counties and states, if more stringent than the MERS
requirements, but no later than 45 calendar days after the effective payoff date.

Foreclosure Processing Standards

• For MOM and Non-MOM loans, prepare assignment to Servicer and send it for recording
before taking first legal action.

• Change MIN foreclosure status to “Foreclosure Pending Option 1 (assigned to servicer) for a
MOM or Non-MOM loan, or “Foreclosure Pending Option 3 (iRegistration only)” for an

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 iRegistration, within seven four calendar days of when the first legal action is taken. Some
examples of First legal action may be defined bywhat might be considered first legal action
are:
o Publication
o Recording of the notice of default
o Recording notice of sale
o Filing of the complaint
o Filing with public trustee
o Notice of hearing
Petition

Prepare assignment to Servicer and send it for recording within four calendar days of the
status change on the MERS System.
•o
• Change Deactivate the MINChange foreclosure status to status towith “Foreclosure
Complete” or “Foreclosure Reinstated or Modified (option 1), not assigned back to MERS –
Deactivate” or Foreclosure Reinstated” within four seven calendar days of this action taking
placeforeclosure completion, reinstatement or modification to deactivate MIN.

Each Servicer must include in its Quality Assurance Procedures a definition of when it deems
a foreclosure complete or reinstated, and hold to it consistently.
•o Upon deactivation, Members must ensure MERS is no longer named in the
County land records
• Change MINforeclosure status to “Foreclosure Reinstated or Modified (option 1), assigned
back to MERS” within threefour calendar days of the reinstatement or modificationaction
taking place.
o If the loan reinstates and is assigned back to MERS, pPrepare the assignment to
MERS and send it for recording within four calendar days of the status change on
the MERS® System.
• Change MIN foreclosure status to “Foreclosure Reinstated or Modified (option 1), not
assigned back to MERS - keep active as iRegistration” within threefour calendar days of the
reinstatement or modificationaction taking place.
• If loan assigned to Servicer for foreclosure:
o Change MIN status to “Foreclosure Pending, Assigned to Servicer” on MERS®
System within seven calendar days of initiating foreclosure by Servicer.

o Prepare assignment to Servicer and send it for recording within 14 calendar days of
the status change on the MERS System.
o If the loan reinstates and is assigned back to MERS, prepare the assignment to MERS
and send it for recording within 14 calendar days of the status change on the MERS®
System.

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Deactivation Processing Standards
• Change MIN status to deactivation reason on MERS® System within seven four calendar
days of the event that caused the deactivation.
• For all MOM and Non-MOM loans deactivated for reason of “Transfer to non-MERS
ServicerStatus,” “Default by Servicer,” or “Default by Subservicer,” prepare assignments and
send them for recording, and update Deactivation Assignment Sent Date on the MERS
System, within 14 seven calendar days of the Deactivation Date.
• If a deactivation was performed in error, reverse it on the MERS® System the same day the
error is discoveredwithin seven calendar days of discovering the error.

Member Information Update Standards

• Ensure that all Member Information on MERS® System is kept current and accurate. This
includes:
• Member name (contact MERS to change)
• Member address(es)
• Member phone and fax numbers
• Member URL
• Member contact information (names, phone and fax numbers, and email addresses),
including at a minimum:
• Primary Customer Service contact
• Primary System Administrator contact
• Operational contact
• Accounts Billing contact
• Executive Sponsor
• Lawegal
• Technical (required if using system-to-system interface to MERS® System)

Data Integrity Standards

These Standards apply to the data on the internal system of the Subservicer if one is named
on the MERS® System, otherwise to the data on the internal system of the Servicer.
Upon registering a loan on the MERS® System, ensure a three-way validation occurs and the
information on the recorded security instrument matches the MERS® System and your LOS or
Servicing system.
o Loan status on the Member’s system must match the MERS® System.

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•o The current borrower name(s) or Corporate name(s) on the MERS System must match
exactly the borrower name(s) or Corporate name(s) on the original security
instrumentMember’s system (including middle name or initial), title, and honorific, if present
on the security instrument) unless the loan has been assumed.
o For assumed loans, the current borrower name(s) on the MERS System must match the
borrower name(s) on your company’s servicing system.
• , and the original borrower name(s) on the MERS System must match exactly the borrower
name(s) on the original security instrument. (Exception may be made if the loan was
assumed before being registered on the MERS® System.)
•o Primary Current BorrowersThe social security number or tax identification number for all
current borrowers must match the numbers used for IRS 1098 reporting on your company’s
servicing system.
•o Subject property address must match exactly the property address on the security
instrumentin the Member’s system unless the subject address has been changed by
governmental decree.
•o Property County must match the county listed in the legal description made part of the
security instrument.on the Member’s system.
Note: You must correct all “County Unknown” warnings before you set the Quality Review
Flag equal to Y on the MERS® System
•o Note Date and Note Amount must match the date and amount specified in the original Note
or eNote.on the Member’s system.
•o If applicable, Funding Date must match the date specified on the Member’s Servicing
system.
•o MOM Indicator is MOM for loans with MERS as Original Mortgagee (MOM) which have
never been assigned out of MERS, Non-MOM for loans assigned into MERS, and
iRegistration for loans on which MERS is not the mortgagee.
•o Mortgagee/Beneficiary, Lien Type, and Security Instrument Type, and Owner Occupied flag
on MERS® System must match the original Security InstrumentMember’s system
If Deed of Trust, Trustee on MERS® System matches original Deed of Trust.
• Specified MINs, selected for a Document MERS Quality Assurance Review, may
require the Member to enter the Substituted Trustee in the Trustee field.
• Security Instrument Recording Information on MERS® System matches recording
information on original Security Instrument.
• If applicable, Assignment Recording Information on MERS® System matches recording
information on Assignment.
• If applicable, Modification Agreement Recording Information on MERS® System matches
recording information on Modification Agreement.
•o Investor identified as the current Investor on the MERS System must be the investor
designated on your company’s servicing system, if the investor is either an Option 1 or an
Option 2 Member Investor. You may identify a non-Member investor with an alias or by

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 using Org ID 1000002 (Undisclosed Investor); however, you must disclose the actual
investor’s name to MERSCorp, Inc.
•o Servicer and Subservicer (if applicable) identified as current Servicer or Subservicer on the
MERS System must be the servicer and subservicer designated on your company’s
servicing system.
o Subservicer identified as current Subservicer on the MERS System must be the subservicer
designated on your company’s servicing system.
•o Originating Org ID for MERS Member, or Original Note Holder for Non-MERS Member,
correctly reflects loan originator.
•o The seller must initiate all Transfer of Beneficial Rights transactions within 14 five calendar
days of the effective transfer date.
•o The seller must initiate all Transfer of Servicing Rights transactions within 14 five calendar
days of the effective transfer date. The effective transfer date is the date defined in the
Purchase and Sale Agreement on which the buyer begins servicing the loans on its servicing
system.
Note: Both buyer and seller are responsible to MERS for ensuring that transfers are
completed in a timely manner.
•o Investor Loan Number, Investor Pool Number (or Trust Name), and Agency ID if required
by the investor, must match those numbers values on your company’s servicing system.
o When the Investor field contains a securitization trustee, Members are required to
enterpopulate the “Pool” field to better define the Investor legal entities holding the note.
Enter the pool number for an Agency and the name of the trust otherwise.
o Example: ABC Trustee 2010-10 or ABC as Indenture Trustee of the 2008HE3-
25trust
• For MINs in rated securities, you must enter the securitization serial number either in the
Pool Number field or in the Investor Loan Number field.
•o If applicable, FHA/VA Case numbers, if required by the Investor, must match those on your
company’s servicing system.
Note: If a specific investor’s requirements are more stringent than the MERS requirements, the
investor’s requirements supersede MERS policy.

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Monthly Reconciliation Standards
At a minimum, the following fields must be reconciled monthly between your internal system
and the MERS® System. If you update additional fields on the MERS® System, you must
reconcile them with your internal system as well.
Required or
Field name Additional Condition
Conditional

MOM & Non-MOM Registration Data

MIN R
Mortgagee/Beneficiary R
Lien Type R
Note Date R
Note Amount R
Servicer R
Subservicer C Required if Subservicer is a MERS Member
Investor R
Required for MOM Loan
Originating Org ID C
or if Originated by MERS Member
Required within 60 days of Registration if
Original Note Holder C
Originated by Non-MERS Member
Property Street name R
Property Street number R
Property City R
Property State R
Property Zip R
County R
MOM Indicator R
Security Type R
Property Unit type C
Required if
Assignee Name C
Assigned out of MERS
Required if
Assignee Address C
Assigned out of MERS
Required if
Assignee City C
Assigned out of MERS
Required if
Assignee State C
Assigned out of MERS
Required if
Assignee Zip C
Assigned out of MERS
Required if
Funding Date C
different from Note Date
Corporate name C
Borrower First name C
Borrower Middle name C

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 Required or
Field name Additional Condition
Conditional
Borrower Last name C
Primary Borrower
R
Social Security number
Co-borrower Corporate Name C
Co-borrower First name C
Co-borrower Middle name C
Co-borrower Last name C
Co-borrower Social Security number C
Property Unit number C
Investor Loan number C
FHA/VA/Mi loan number C
Required if Investor field contains
securitization trustee
Pool Number C
Enter pool number for Agency Trustee
Otherwise enter name of trust
Agency ID C
Required if
Assignment Sent Date C
Assigned into MERS
Required if
Assignor Name C
Assigned into MERS
Required if Member Property Preservation
Property Preservation Org ID C
Company Assigned to Property
Owner Occupied Indicator R

MERS® iRegistration Data

MIN R
Mortgagee/Beneficiary R
Lien Type R
Note Date R
Note Amount R
Servicer R
Subservicer C Required if Subservicer is a MERS Member
Investor R
Required if
Originating Org ID C
originated by MERS Member
Required if not
Original Note Holder C
originated by MERS Member
Property Street name R
Property Street number R
Property City R
Property State R
Property Zip R
County R

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 Required or
Field name Additional Condition
Conditional
MOM Indicator (must = iRegistration) R
Property Unit Type R
Corporate name C
Borrower First name C
Borrower Middle name C
Borrower Last name C
Primary Borrower
R
Social Security number
Co-borrower Corporate Name C
Co-borrower First name C
Co-borrower Middle name C
Co-borrower Last name C
Co-borrower Social Security number C
Property Unit number C
Required if Member Property Preservation
Property Preservation Org ID C
Company Assigned to Property
Owner Occupied Indicator R

NOTE: REO MERS® iRegistrations must be registered in accordance with Announcement 2010-05.

MIN Status:
Active R
Paid In Full R
Foreclosure Complete R

Foreclosure Status:
Pending Foreclosure R
Foreclosed in MERS’ Name (Y/N) R

Contacts
Accounts Billing R
Primary System Administrator R
Primary Customer Service R
Operational R
Required if using
Technical C
System-to-System Interface
Executive Sponsor R
Legal R

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 Appendix A
MERS Quality Assurance Review
To ensure compliance with MERS Quality Assurance standards, MERS completes performs
biannual a variety ofMember Data Reconciliation quality assurance reviews which may include,
but are not limited to, reviewing mortgage documents for MERS loans serviced/originated by the
Member and/or data from the Member’s servicing or loan origination system. MERS may also
conduct an on-site review of your MERS processes, departments, workflow, and procedures, and
speak with the staff performing your MERS functions, to help us understand and improve your
MERS processing.
MERS may request a random sampling of documents (for MOMs, non-MOMs and
iRegistrations), and/or servicing or loan origination system data to compare the information to
the MERS® System. This helps ensure that the data on the MERS® System is correct, and that
the Member is following the MERS documentation and quality assurance standards. MERS will
also request a copy of your most recent MERS Quality Assurance Plan.
The following list identifies the types of documents the Quality Assurance Team reviews and the
key data elements that are compared to the MERS® System.

Checklist Items
MOM Security Instrument Document Review
 Approved MOM Language Used
 Correct MIN and SIS Number placed on documents
 MIN positioned in correct location on required documentation
 Security Instrument sent for recording within 7 calendar days of Note Date (or Funding Date
in escrow states) in accordance with state and investor guidelines, however , should the
jurisdiction not require recordation, MERS rules state MERS must be named in the county
land records
 Security Instrument registered on MERS within 10 seven calendar days of Note Date (or
Funding Date in escrow states)
 MOM indicator is set to “MOM” in MERS® OnLine
MERS Assignments Document Review
 Approved MERS as Mortgagee Language used
 Correct MIN placed on Assignment
 MIN positioned in correct location on Assignment
 Correct SIS Number placed on Assignment
 SIS Number positioned in correct location on Assignment
 Assignee (when assigning to MERS) or Assignor (when assigning from MERS) name and
address indicated on the MERS® System match the executed assignment
 Loan registered or converted from iRegistration to Non-MOM within 14 seven calendar days
of Transfer Date or Assignment Date
 Assignment Sent for Recording within 14 seven calendar days of Registration Date

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10Draft Appendix A - 16

 Assignment Sent Date entered on MERS® System within 5 calendar days of sending
assignment for recording execution
 MOM indicator is set to “Non-MOM” in MERS® OnLine
 MERS Signing Officer signature is valid:
o Present on approved Signing Officer list for that Org ID and date
o Proven to be an officer of the company with that Org ID on that date

MERS® iRegistrations Document Review

 No MERS language used, or assignment out of MERS recorded before registration as
iRegistration loan
 MOM indicator is set to “iRegistration” in MERS® OnLine

Lien Release Document Review

o Approved MERS as Mortgagee Llanguage used
o Correct MIN and SIS number placed on documents
o MIN positioned in correct location on required documentation
o Lien Release sent for recording
o MIN status on MERS®(R) System is updated to reflect Paid in Full within four calendar
days
 MERS Signing Officer signature is valid:
o Present on approved Signing Officer list for that Org ID and date
o Proven to be an officer of the company with that Org ID on that date

Foreclosure Document Review

o Foreclosure documentation matches foreclosure status transacted on MERS® System
o Member will supply proof of assignment if applicable
o Member will supply proof of first legal action
o Pending Option in MERS® System matches documentation
o Assignments out of MERS contain:
o Correct MIN placed on Assignment
o MIN positioned in correct location on Assignment
o Correct SIS Number placed on Assignment
o SIS Number positioned in correct location on Assignment
o MERS Signing Officer signature is valid:
 Present on approved Signing Officer list for that Org ID and date
 Proven to be an officer of the company with that Org ID on that date
Ensure Substitution of Trustee field data matches document(s) provided
 If property went to sale, ensure MERS was not left in title on sale documentation (unless in a
state where this is temporarily allowed)
 If title was deeded to MERS temporarily, provide subsequent deed removing MERS from
title

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10Draft Appendix A - 17

Additional Recordable Documents
 Correct MIN placed on document
 MIN positioned in correct location on document
 Transaction entered on MERS® System within seven calendar days of effective date or
Registration Date, whichever is later.
 For MOM and Non-MOM:
o Correct SIS Number placed on document
o SIS Number positioned in correct location on document
o Recording information entered on MERS® System within six months of effective
date or seven calendar days of Registration Date, whichever is later.

Security Instrument/Recording Information Processing Standards (MOM & Non-MOM)

 MOM loans - Security Instrument recording information entered on MERS® System within
30 calendar days of Registration Date
 Non-MOM loans - Security Instrument and Assignment recording information entered on
MERS® System within 6 months of Registration Date
 MOM and Non-MOM loans –
o Recording information for modification agreements entered on MERS® System
within six months of modification date
o Assignee and Assignor Names entered for all assignments within six months of
modification date
o Quality Review Flag set to “Y” within 12 months of Registration Date
 All loans - within six months of Registration Date:
o Mortgagee/Beneficiary entered
o Security Instrument Type entered
o Trustee entered
Foreclosure Processing Standards
 MIN status changed to “Foreclosure Pending” within seven calendar days of when
the first legal action is taken.
 MIN status changed to “Foreclosure Complete” or “Foreclosure Reinstated”
within seven calendar days of when foreclosure is deemed complete or reinstated, as
defined in Member’s Quality Assurance Procedures.
 If MOM or Non-MOM loan assigned to Servicer for foreclosure:
 Change MIN’s foreclosure status to “Foreclosure Pending, Assigned to Servicer”
within seven calendar days of initiating foreclosure by servicer.
 Prepare assignment to Servicer and send it for recording within 14 calendar days
of status change on MERS® System.
 If loan reinstates and is assigned back to MERS, prepare assignment to MERS and
send it for recording within 14 calendar days of status change on MERS® System.

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10Draft Appendix A - 18

Deactivation Standards – Payoff
 MIN status changed to “Paid in Full” and Effective Payoff Date entered on MERS®
System within seven calendar days of Payoff date on the Member’s servicing system
 Lien Release document sent for recording no later than 45 calendar days after the
effective payoff date.
 Lien Release document for MOM or Non-MOM loan has:
o Approved MERS as Mortgagee language
o Correct MIN placed on Lien Release
o MIN positioned in correct location on Lien Release
o Correct SIS Number placed on Lien Release
o SIS Number positioned in correct location
Deactivation Standards – Transfer to Non-MERS Member, Default by Servicer, Default by
Subservicer
 MIN status changed to “Transfer to Non-MERS Member,” “Default by Servicer,” or
“Default by Subservicer” and Transfer Effective Date entered on MERS® System within
seven calendar days of effective transfer date.
 For MOM and Non-MOM loans, assignment sent for recording, and Assignment
Sent Date reflected on MERS® System, within 14 calendar days of Deactivation Date.
Deactivation Standards – All Others
 MIN status changed to reflect deactivation and Effective Date entered on MERS®
System within seven calendar days of event that caused the deactivation.
 For MOM and Non-MOM loans, assignment sent for recording within 14 calendar
days of Deactivation Date on MERS® System

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10Draft Appendix A - 19

Data Integrity Standards
 MOM Indicator correctly reflects MERS as Mortgagee status
 Original Borrower Name(s) on MERS® System match Security InstrumentMember’s system.
 Current Borrower Name(s) on MERS® System match Security Instrument or current
borrower(s) on Member’s servicing system
 All Borrower Social Security or Tax ID numbers matches Member’s servicing system
 Property address matches the address on the Security InstrumentMember’s system
 Property County matches the legal description made part ofon the Security
InstrumentMember’s system
 Note Date matches the original Note or eNote
 If applicable, Funding Date matches funding date on Member’s servicing system
 Note Amount on MERS® System matches original Note or eNote
 Lien Type on MERS® System matches Security InstrumentMember’s system
 Security Instrument Type on MERS® System matches Security InstrumentMember’s system
 Mortgagee/Beneficiary on MERS® System matches Security InstrumentMember’s system
 Owner Occupied flag on MERS® System matches Member’s system
 Trustee on MERS® System matches Deed of Trust
 Recording Information on MERS® System matches recording information on original
document (Security Instrument, Assignment, etc.)
 Investor on MERS® System matches Member’s servicing system
 Servicer/Subservicer on MERS® System matches Member’s servicing system
 Subservicer on MERS® System matches Member’s servicing system
 Originating Org ID for MERS Member, or Original Note Holder for Non-MERS Member,
correctly reflects loan originator.
 Securitization Serial Number entered into Pool #Number or Investor Loan # field for MINs
in rated securities:
o Contains pool number if securitization trustee is an Agency
o Contains trust name otherwise

 Investor Loan #, Investor Pool # and Agency ID (if required) match Member’s servicing
system
 If applicable, FHA/VA case numbers match Member’s servicing system

Member Information Standards

 All Member Information (including Contact Information) on MERS® System is current and
accurate.

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10Draft Appendix A - 20

 Appendix B
Sample Documents for MOM Loans and Loans
Assigned to MERS
MERS does not mandate specific language changes to mortgage loan documents. However, the
following three requirements must be satisfied for MOM loans and loans assigned to MERS:

1) Legal title to the mortgage lien or the lien of other security agreements must be vested in
Mortgage Electronic Registration Systems, Inc., a Delaware stock corporation with an
address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-
MERS.

2) The 18-digit mortgage identification number (“MIN”) required for each loan registered
on the MERS® System, as well as the SIS telephone number, must be placed on the cover
page (or first page if there is no cover page) of each of the following documents: (a)
mortgage or deed of trust, (b) other security instruments, (c) assignment of security
instruments to or from MERS, (d) lien releases or reconveyances and (e) any other
instruments recorded in the public land records in which MERS has a legal interest.
Placement of the MIN on other loan documentation is optional for the Lender.

3) Notices provisions in the mortgage, deed of trust and other security instruments should be
modified to add Mortgage Electronic Registration Systems, Inc.

MERS is not rendering legal advice to Lenders. The following materials are provided to give
Lenders guidance on the changes that may be appropriate to achieve our requirements. Specific
state or local recording laws, and agency or investor requirements, may require other changes to
the documents. Lenders and their counsel are free to make other changes that they believe are
necessary or appropriate to conform their documents to the requirements of the MERS® System.

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10Draft Appendix B - 21

Following are sample changes to these documents:
 MOM Deed of Trust or Mortgage
 Corrective Affidavit for Assignment
 Corrective Affidavit for Security Instrument
 Loan Security Agreement
 For Co-ops:
o UCC-1 Naming MERS as the Original Secured Party
o UCC-3 Assigning Security Interests to MERS
o UCC-3 Assigning Security Interests from MERS
o UCC-3 Termination Agreement

Sample documents are available on the MERS website at www.mersinc.org:

 Sample MOM Deed of Trust
 Sample MOM Mortgage
 Sample Assignment of Mortgage to MERS
 Sample Assignment of Mortgage from MERS
 Sample Lien Release
 Sample Loan Modification Agreement
 Sample Consolidation, Extension and Modification Agreement
 Sample California Assignment MERS to MERS
 Sample Subordination Agreement
 Sample Subordination of Lien
 Sample Security Deed

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10Draft Appendix B - 22

Sample Changes to Deed of Trust or Mortgage naming
MERS as the Original Mortgagee (MOM Document)
The MERS 18-digit MIN must be visible on the Security Instrument. Place the MIN to the right
of the form title, but not within the top recording margin or on the right margin.
The specific language and placement may vary from state to state. Below is just a generic sample
of what changes may need to be made. Please check with your documentation preparation
vendor for state specific forms.
In the Definitions section:
MERS as Grantee/Mortgagee language; e.g.
“MERS” is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that
is acting solely as a nominee for Lender and Lender’s successors and assigns. MERS is the
[grantee/beneficiary/mortgagee] under this Security Instrument. MERS is organized and existing
under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint,
MI 48501-2026, tel. (888) 679-MERS.

In the granting clause:

MERS noted as grantee solely as nominee for lender; e.g.
This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals,
extensions and modifications of the Note; and (ii) the performance of Borrower’s covenants and
agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby
[mortgage,] grant and convey to MERS (solely as nominee for Lender and Lender’s successors
and assigns) and the successors and assigns of MERS, with power of sale, the following
described property located in

or

The beneficiary of this Security Instrument is MERS (solely as nominee for Lender and Lender's
successors and assigns) and the successors and assigns of MERS. This Security Instrument
secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications
of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security
Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee,
in trust, with power of sale, the following described property located in

Add Borrower consent sentence; e.g.

Borrower understands and agrees that MERS holds only legal title to the interests granted by
Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as
nominee for Lender and Lender’s successors and assigns) has the right: to exercise any or all of
those interests, including, but not limited to, the right to foreclose and sell the Property; and to
take any action required of Lender including, but not limited to, releasing and canceling this
Security Instrument.

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10Draft Appendix B - 23

Sample Corrective Affidavit for Assignment

Beneficiary if
using a Deed
of Trust

MORTGAGEE’S AFFIDAVIT

The undersigned, _______________________, does hereby depose and say as follows:

1. That I am an authorized officer of the mortgagee (or assignee), Mortgage Electronic Registration
Systems, Inc.

2. That this Affidavit refers to the Assignment from (insert name of Assignor) to Mortgage
Electronic Registration Systems, Inc., in relation to property located at (insert property address, city and
state), dated _________________ and recorded at the (insert name of recording office) at Book
________, Page __________.

3. That the Mortgage Identification Number (MIN) was either omitted or incorrect on said
Mortgage (or assignment).

4. That the correct MIN for the mortgage (or assignment) is MIN _______________________, and
that the MERS telephone number to call for information when using this MIN is (888) 679-6377.

Signed this _______ day of ___________, 200_

(signature line_______________)

APPLICABLE STATE NOTARY CLAUSE

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10 Draft Appendix B - 24

Sample Corrective Affidavit for Security Instrument

Beneficiary if
using a Deed of
Trust

MORTGAGEE’S AFFIDAVIT

The undersigned, _______________________, does hereby depose and say as follows:

5. That I am an authorized officer of the mortgagee (or assignee), Mortgage Electronic Registration
Systems, Inc.

6. That this Affidavit refers to the Mortgage from (insert name of borrower) to Mortgage Electronic
Registration Systems, Inc. as nominee for (insert name of lender, it successors and assigns), in relation to
property located at (insert property address, city and state), dated _________________ and recorded at the
(insert name of recording office) at Book ________, Page __________.

7. That the Mortgage Identification Number (MIN) was either omitted or incorrect on said
Mortgage (or assignment).

8. That the correct MIN for the mortgage (or assignment) is MIN _______________________, and
that the MERS telephone number to call for information when using this MIN is (888) 679-6377.

Signed this _______ day of ___________, 200_

(signature line_______________)

APPLICABLE STATE NOTARY CLAUS

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10 Draft Appendix B - 25

 Sample Loan Security Agreement
MIN: 1000XXX-XXXXXXXXXX-X
MERS Phone: 1-888-679-6377
Lender’s Loan Number: XXXXXXXX
Loan Security Agreement

THIS AGREEMENT, made DATE XXXXX, between ABC LENDER CORPORATION, incorporated
under the laws of the State of __________, and having any office at LENDERS ADDRESS, (the BANK) and
BORROWER AND CO-BORROWER, (Debtor) residing at: BORROWER’S ADDRESS

I. Representations of Debtor:

1. Debtor owns XXX shares of capital stock of XYZ VILLAGE OWNERS, INC. (the Corporation) as
evidenced by Certificate Number XXXXXX of the Corporation (the “Stock”) allocated to Apartment (the
“Apartment”) XXXXXXX in the building known as XXXXXXX, CityXXXX, ST, ZIP. And is the tenant under the
occupying proprietary lease (the “Lease”) of the Apartment.

2. As evidenced by a note (the “Note”) dated simultaneously with this Agreement, Debtor is obligated to
pay to the Bank the principal amount with interest as provided in the Note (which Principal amount and interest and
any sums advanced the Bank pursuant to the terms of this Agreement are called the “debt”).
Language, as indicated on the
Debtor hereby covenants and agrees as follows: UCC-I or UCC-3

II. Security:

Debtor has simultaneously with this Agreement deposited with the Bank, the Stock, and the Lease and as security
for the payment of the debt, Debtor hereby grants to Mortgage Electronic Registration Systems, Inc., solely as
nominee For the Bank, its successors and assigns, a security interest in, and a general lien upon, said Stock and
Lease and all personal property and fixtures (other than household, furniture and furnishings) of debtor, now or
hereinafter attached to, or used in connection with, the apartment (collectively called the “Security”).

III. Defaults:

The whole of the principal sum and interest shall become due at the option of the Bank upon the occurrence of any
of the following events of default:

1. Failure to Pay. Debtor fails to make any payment required under the Note within thirty (30) days after
the date the payment become due; or

2. Default Under Lease. Debtor does not cure any default under the Lease within the time periods, if any
specified within a reasonable time; or

3. Cancellation, Surrender or Assignment of Lease. Debtor attempts to cancel, surrender or assign the
Lease prior to maturity of the Note, or notice is given by the Corporation that the Lease is to be cancelled or
terminated; or

4. Failure to Deliver Security Instruments. Debtor fails to execute and deliver any instrument required by
the Bank to perfect or protect its security interest in the Security or to pay any filing or recording fees owing in
connection with the perfection of the security interest; or . .

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10 Draft Appendix B - 26

Sample UCC-1 Naming MERS as the Original Secured Party

MERS Quality Assurance Procedures – Release 19.05 – Draft6/14/10 Appendix B - 27

Sample UCC-3 Assigning Security Interests to MERS
when MERS is Not Named as the Original Secured Party

Current Secured Party

of Record

MERS Quality Assurance Procedures – Release 19.05 – Draft6/14/10 Appendix B - 28

Sample UCC-3 Assigning Security Interests from MERS
when transferred to a non-MERS entity

MERS Quality Assurance Procedures – Release 19.05 – Draft6/14/10 Appendix B - 29

Sample of UCC-3 Termination, When Debt is Paid in Full

18-digit MIN and

Servicer Identification System Phone Number

MERS Quality Assurance Procedures – Release 19.05 – Draft6/14/10 Appendix B - 30

 Glossary
Acquisition Date The date of acquisition recognized in the books and records of the Purchaser.

Agency ID A number assigned by a government agency to uniquely identify a mortgage

company.
Assignment A transfer to another of any property, real or personal, or of any rights or estates in
said property.
Associated Member A MERS Member that has been granted inquiry only access to loan information by
the Servicer/Subservicer of a mortgage registered on MERS.
Assumption Taking over by one party of an obligation that was originally incurred by another.
In MERS® System, this results in replacement of the Primary Borrower and all
Co-Borrowers.
Batch A group of one of more MINs identified to be included in a Transfer of Beneficial
or Servicing Rights transaction.
Batch File A system-to system transaction used to update the MERS® System.

Batch Inquiry Transaction used to look up information on loans matching search criteria entered
using a flat file format.
Beneficial Rights A transfer of the security interest under the mortgage or deed of trust. These
transfers are tracked for MERS Members on the MERS® System.
Transfer
BIR Business Integration Resource. The MERS employee who assists you in
incorporating the MERS® System into your business processes.
Bulk Transfer The process of transferring the servicing rights of multiple loans on the MERS
System in a one-time transaction.
CEMA Consolidation, Extension, and Modification Agreement. Also known as MECA

Check digit The final digit of the 18-digit Mortgage Identification Number (MIN), which is
calculated using the MOD 10 Weight 2 algorithm.
Co-Borrower The first borrower listed on the Security Instrument is the Primary Borrower for
that loan on the MERS® System. Each additional borrower listed on the Security
Instrument is a Co-Borrower for that loan on the MERS® System. Names listed on
the Security Instrument but not the Note should be entered as Co-Borrowers on the
MERS® System. Names listed on the Note but not the Security Instrument should
not be entered on the MERS® System.
Confirmation The transaction used by an Investor, Servicer, or Subservicer to indicate if a
pending transfer transaction should be accepted or rejected.
Conversion The process by which an iRegistration loan is converted to a Non-MOM loan if it is
assigned to MERS. Uses the Registration transaction.
Deactivation When a loan becomes inactive on the MERS System for one of the following
reasons:
• Paid in Full (includes payoff, deed in lieu, short sale, etc.)
• Transfer to non-MERS Servicer
• Involuntary transfer/default by Servicer
• Involuntary transfer/default by Subservicer
• Foreclosure Complete
• Reinstated or modified (option 1), not assigned back to MERS

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10 Draft Glossary - 31

 Deactivation Reversal The process for reactivating a MIN that was deactivated in error.

DTD Document Type Definition. A file that defines the “markup language” that will be
used to describe the data. It defines and names the elements that can be used in the
document, the order in which the elements can appear, the element attributes that
can be used, and other document features.
EDI Electronic Data Interchange. The system-to-system exchange of business
transactions between one or more business partners in a standard format.
eNote A Transferable Record as defined by E-SIGN or UETA, whichever is applicable.

ESIGN Electronic Signatures in Global and National Commerce Act.

A federal statute that establishes the legal validity and enforceability of electronic
signatures, contracts, and other records in interstate and foreign commerce
transactions, if not superseded by certain state laws otherwise authorizing such
activities.
ETA Electronic Tracking Agreement. An agreement that is used when a mortgage
originator pledges mortgages to a warehouse lender as collateral through a line of
credit or other financing arrangement.
FIPS Code The code assigned by the Federal Information Processing Standards (FIPS)
Publications issued by the National Institute of Standards and Technology (NIST)
to represent a county or other entity treated as an equivalent legal and/or statistical
subdivision of the 50 states, District of Columbia, and the possessions and freely
associated areas of the United States.
Flat File Format This is the optional proprietary format for system-to-system input to the MERS®
System. Members that are not X12 capable can use this format.
Flow Loan Registration A loan registered on the MERS System 270 days or less after the note date.

Flow Transfer MERS defines flow as a Transfer Date 270 days or less after the Note Date. There
is no fee for this transaction nor limitations to the number of times a MIN can be
included in Flow Transactions.
Foreclosure Status The field reflecting the current status of a MIN in foreclosure on the MERS®
System. “Foreclosure Complete” and “Reinstated or modified (option 1), not
assigned back to MERS” statuses deactivate the MIN. The following is a list of
MERS foreclosure statuses:
• Foreclosure pending (option 1), assigned to Servicer

• Foreclosure pending (option 2), retained on the MERS System
• Foreclosure pending (option 3), iRegistration
• Reinstated or modified (option 1), assigned back to MERS
• Reinstated or modified (option 1), not assigned back to MERS-deactivation
• Reinstated or modified (option 1), not assigned back to MERS- iRegistration
• Reinstated or modified (option 2)
• Reinstated or modified (option 3)
• Foreclosure complete
• Foreclosure status reset
FTP File Transfer Protocol

Funding Date Funding Date is defined as the date the borrower becomes obligated for the debt
and interest starts to accrue. In some states, this may be different from the date the
borrower signs the note, or the date the note is drawn.
General Public Refers to any non-MERS Member who requests information. Only selected
information will be accessible through an automated servicer identification system
and the customer must provide required information to activate and release
requested information.
Integration The process by which a Member completes procedural changes, training, and
system testing of transactions prior to being live in the MERS® System.

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10 Draft Glossary - 32

 Interim Funder Organization with an interim financial interest on a loan prior to the sale of the loan
to the permanent Investor, who has chosen to have their secured interest in each
loan represented in a way that only they can release on the MERS® System .
Interim Funder Interest The financial interest on a loan that an organization has prior to the sale of the loan
to the permanent Investor. Examples of organizations are warehouse lenders, Wall
Street firms, and other parties that extend interim funding to originators.
Investor The owner of the beneficial interest in a loan.

iRegistration Loan registered on the MERS® System for information only, where MERS is not
the mortgagee. iRegistration loans may be included in transactions (e.g. TOS,
TOB, deactivation, foreclosure), but assignment and recording information is
optional, and the Quality Review flag cannot be set to “Y.”
Lender The payee on the note.

Lien Release An instrument releasing the security interest recorded in the county land records
(also discharge, satisfaction, reconveyance).
Line of Business (LOB) The types of business in which a Member is active on the MERS® System. These
are listed in the Member’s Member Profile.
Member Refers to all organizations whose signed MERS Membership Application has been
submitted and approved, and whose fees are current.
Member Profile MERS-specific information about a MERS Member that is required at the time of
initial setup. The member profile indicates the Member’s MERS business process
preferences, billing, and other information.
MERS MERSCORP, Inc., which owns and operates the MERS® System, the MERS®
eRegistry, and MERS® eDelivery; and Mortgage Electronic Registration Systems,
Inc., its wholly owned and bankruptcy remote subsidiary, which acts as the
mortgagee of record in the public land records and as nominee for the lender and its
successors and assigns.
MERS® 1-2-3 A complete online solution to achieve MERS® Ready status for Lenders that sell
loans servicing-released. Through interfaces with approved document preparation
companies, it generates a MIN to be presented on a MOM security instrument or
assignment. It also warehouses data to pre-populate the fields on the MERS
Registration page, thereby eliminating approximately 80% of the required data
entry.
MERS actual Transfer The date servicing of the loans is transferred in the MERS database. This date will
be the same as the servicing Transfer Date unless the buyer does not confirm the
Date transfer on time.
MERS® eDelivery A secure method for distributing eMortgage packages from one MERS® eRegistry
Member to another, using the existing MERS® eRegistry infrastructure and
transaction security requirements.
MERS® eRegistry An electronic note registry that serves as the system of record to identify the current
controller and location of the authoritative copy of an electronic note.
MERS Help Desk Provides support of MERS systems and procedures, via telephone and email, to
MERS Members.
MERS® InvestorID An initiative to provide more transparency regarding residential mortgage loans.
Uses information entered on the MERS® System to generate a Notice of New
Creditor required by the Helping Families Save Their Homes Act of 2009 when a
TOB is completed for a MOM or Non-MOM loan. Investors who have developed
their own notification process can opt out of MERS® InvestorID.
MERS® Link Browser-based access to the MERS® System to retrieve information about the
current Servicer of a mortgage registered on the MERS® System. If supported by
the Servicer, it may have a “hot link” to the Servicer’s website for Customer
Service information. MERS® Link also can be accessed via the American Land
Title Association web site or through a subscription to the service

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10 Draft Glossary - 33

 MERS® Lite Member A lender that has signed a MERS Member Agreement solely so that it can sell loans
with MERS as the nominee for the lender on the security instrument to other MERS
Members. This type of Member sells servicing-released within 30 days of loan
closing.
MERS® OnLine Browser-based access to the MERS System, found at www.mersonline.org.

MERS® Servicer ID Browser-based access to servicer contact information for loans registered on the
MERS® System. Available to the public at www.mers-servicerid.org.
MERS® System An electronic registry that tracks changes in loans servicing and beneficial
ownership rights. Member companies update the registry via MERS® OnLine (the
browser-based interface) or through batch file or XML interfaces.
MIN Mortgage Identification Number. The MIN is an 18-digit number composed of the
7-digit Organization ID, the 10-digit sequence number, and the check digit.
MIN Archival The process that removes MINs that have been deactivated on the MERS System.
Limited information is still available on the MIN.
MIN Status The field reflecting the reason for current status of a loan on the MERS® System.

MOM MERS as the Original Mortgagee. Language written into security instruments that
establishes MERS as the Original Mortgagee and nominee for the Lender, its
successors and assigns.
Mortgage Loan Transfer A Notice of New Creditor required by the Helping Families Save Their Homes Act
of 2009. Generated automatically when a TOB is completed for a MOM or Non-
Notice MOM loan, using the information entered on the MERS® System, unless the New
Investor has opted out of MERS® InvestorID.
My MERS The MERS® OnLine functionality that allows Members to create a list of frequently
used Org IDs.
Non-Member Passive An Investor that is not a Member of MERS and performs no active
functions on the MERS® System.
Investor
Non-MOM A loan for which MERS is the mortgagee through an assignment.

Note Date Note Date is the date on the Note. In some states, the date the borrower signs the
note, or the date the note is drawn, may or may not be the actual date on which
interest begins to accrue (see Funding Date).
Option 1 (beneficial The lender/seller of the beneficial interest initiates the transfer of beneficial rights
outside of MERS (e.g., using MIDANET or MORNET). The Investor sends
rights) confirmation of the transfer to MERS through an X12 transaction. Once the X12
file is submitted, it cannot be canceled. Interim funding interests are released
automatically when the X12 transaction is processed by the MERS® System.
Option 1 MIN Cycling The automated transaction that reprocesses MINs that have been rejected due to
reason of non-registration, when delivery has been attempted to an Option 1
Investor. The cycle and reprocess occurs for 10 calendar days from the effective
Transfer Date.
Option 1TOS (Default by An Option 1 Investor may use this transaction to reflect a transfer of servicing on
that Investor’s loans to another MERS Member Servicer due to default by the
Servicer) previous MERS Servicer. This transaction is billed to the Investor, and leaves the
loan active on the MERS® System.
Option 2 (beneficial In the Option 2 process, the current Investor, Servicer, or Subservicer creates a
beneficial rights transfer transaction. Then the new Investor confirms the transfer.
rights) Interim funding interests must be released separately.
Optional EDI Format See Flat File format.

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10 Draft Glossary - 34

 Organization A MERS assigned seven-digit number uniquely identifying a Member of MERS.
Identification Number The seven digits of the Org ID comprise the first seven digits of the 18-digit MIN.
(Org ID)
Original Borrower The entity listed as the borrower on the original note. May be different from the
current borrower on a loan if the loan has been assumed.
Original Note Holder The loan originator, if not a MERS Member. Displayed as Originating
Organization.
Original Trustee The entity listed as Trustee on the Deed of Trust.

Originating Org ID The Org ID of the loan originator. This organization’s Org ID and Name are
displayed as Originating Organization.
Originating The originator of the loan. If the originator is a MERS Member, that Member’s
Org ID is entered in the Originating Org ID field, and its Org ID and Name are
Organization displayed for Originating Organization. If the originator is not a MERS Member,
the originator’s name is entered in the Original Note Holder field and displayed
for Originating Organization.
Parent/Child Relationship established by MERS on the MERS® System for Members who
execute a Parent/Child Agreement. Only the parent Org ID is billed Membership
Relationship fees, and transactions reflecting seasoned servicing transfers between the Org IDs
named in the relationship are billed as Intracompany Transfer rather than
Seasoned Servicing Transfer fees.
Passive Investor An Option 2 Investor that is a Member of MERS but does not actively confirm
transfers to or from it on the MERS® System.
Pool Number The number assigned to a grouping of loans by the Investor; required for
securitization.
Pre-Closing Loan registered on the MERS® System before the note date with a status of Pre-
Closing (not active). May be registered as an active iRegistration, MOM, or Non-
MOM when the loan closes, but a Pre-Closing may not be updated or included in
any other transaction except Registration Reversal.
Post-Closing Transaction used to activate a loan previously registered as a Pre-Closing on the
MERS® System when the loan closes.
Primary Borrower The first borrower listed on the Security Instrument is the Primary Borrower for
that loan on the MERS® System. Each additional borrower listed on the Security
Instrument is a Co-Borrower for that loan on the MERS® System.
Property Preservation MERS Member with which a Servicer or Subservicer contracts to maintain a
property.
Company
Property Preservation Contact for inquiries about maintenance of properties.
Contact
Quality Review Flag An indicator that the information required to perform a lien release or an
assignment is accurate and complete on the MERS System.
Reactivation The process of activating a previously deactivated MIN for the same borrower,
property, and lien type. MINs deactivated by Paid in Full or Foreclosure Complete
cannot be reactivated.
Recordation The act of recording the loan assignment and/or security instrument in the public
land records. The current Servicer is responsible for entering the recording
information on the MERS® System.
Registrar A company to whom a Member has contracted business activities such that the
Registrar would be the initiator of the business activity that triggers a transaction to
the MERS® System.

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 Registration The process of entering required information into the MERS System to report to
MERS that a loan exists with MERS as the Mortgagee, or to reflect an
iRegistration.
Registration Reversal The process of reversing a loan that was registered in error.

Sale Date (servicing In a servicing transfer, the date the contractual servicing rights are transferred from
seller to buyer. This date is stipulated in the Purchase and Sale Agreement.
rights)
Seasoned Loan A loan registered on the MERS System more than 270 days after the note date.
Registration
Seasoned Transfer MERS defines “seasoned” as Transfer Date more than 270 days after the note date.
A seasoned loan transfer fee is charged to the seller for seasoned servicing transfers.
Security Instrument (SI) A formal legal document securing repayment of a debt (e.g. mortgage or deed of
trust).
Security Instrument The date the security instrument was recorded in the county recorder’s
office.
Recording Date
Security Instrument Indicates whether the security instrument is a deed of trust, mortgage, or land
contract.
Type
Sequence Number The 10-digit number assigned by the MERS Member to uniquely identify a loan.
The 10 digits of the sequence number comprise the 8th through 17th digits of the 18-
digit MIN.
Servicer The entity that has the contractual right to service a loan and responsibility for the
servicing of the loan for the Investor. In some cases the Servicer contracts with a
Subservicer. If so, both the Servicer and the Subservicer must be MERS Members
to register the loans on the MERS System.
Servicer Identification Telephone-based access to the MERS System. It allows anyone to query the
system to obtain information on the current servicer on a MERS-registered loan.
System (SIS) This system was previously named the Voice Response Unit (VRU).
Also the name of the browser-based system available to the public (MERS®
Servicer ID).
Servicing Rights The ownership rights of the current Servicer for servicing loans.

Servicing Rights The sale of servicing rights from the current Servicer to a new Servicer. These
transfers are tracked for MERS Members on the MERS® System.
Transfer
SIS Number Servicer Identification System number: 888-679-MERS(6377)

Standard EDI Format Accredited Standards Committee X12 standard.

Subservicer The entity with whom the Servicer has contracted to service its loans. The
Subservicer is not the legal owner of servicing rights.
System to System An alternative to using MERS ® OnLine, it’s a method of transmitting information
directly from a Member or vendor system to the MERS® System. This includes flat
files and EDI X12 transmissions.
TOB Transaction used to reflect a Transfer of Beneficial rights on the MERS® System.
See Beneficial Rights Transfer.
TOS Transaction used to reflect a Transfer of Servicing rights on the MERS® System.
See Servicing Rights Transfer.
TOS Option 1 (default by Transaction used by an Option 1 Investor to reflect a Transfer of Servicing Rights
on the MERS® System due to default by servicer.
servicer)

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 TOS/TOB Combo Transaction used to reflect a simultaneous transfer of beneficial rights and servicing
rights to an Option 2 Investor. Both flow and seasoned loans may be included in
this transfer.
Transfer Cancellation The date the transfer transaction is canceled on the MERS System if all MIN
confirmations and rejections are not received.
Date
Transfer Creation Date The date that the transfer transaction is initiated on the MERS System.

Transfer Date (beneficial The date beneficial ownership of a loan is transferred from one Investor to another.
In most cases this will be concurrent with the funding date by the new Investor.
rights)
Transfer Date (servicing According to the Purchase and Sale Agreement between the buyer and the seller,
the date the responsibility for servicing the loans passes from seller to buyer.
rights )
Transfer to Non-MERS Transaction used to deactivate a loan on the MERS® System when it is assigned out
of MERS, and/or servicing is transferred to a Non-MERS Member, and/or the
MemberStatus Member no longer wishes to track it as an iRegistration on the MERS® System.
Trustee One who holds title to real property under the terms of a deed of trust.

UETA Uniform Electronic Transaction Act. A uniform form of statute that various states
have enacted to establish the legal validity and enforceability of electronic
signatures, contracts, and other records within the enforcing state; when enacted by
a state, it may take the place of the provisions of ESIGN.
Undisclosed Investor Investor is not a MERS Member. Contact Servicer or Subservicer for
information.
Update A change to information outside of a previously defined business process
(corrections, updates to previously null fields, etc.)
Vendor A MERS Member who performs various transactions on the MERS® System on
behalf of another Member under a contractual agreement.
Warehouse/Gestation Associated Member with an interim financial interest on a loan prior to the sale of
the loan to the permanent Investor. Their interest in each loan is released
Lender automatically when servicing is transferred. The Warehouse/Gestation Lender has
view only access to the loan on the MERS® System.
X12 Format A predefined non-proprietary layout at a transaction set level. This is the
recommended format for system-to-system transmissions to the MERS® System.
XML Extensible Markup Language. XML is a markup language designed specifically for
delivering information over the World Wide Web. In creating an XML document,
the user creates and assigns the element names.
XML Inquiry Transaction used to look up information on loans matching search criteria entered
using an XML request.

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10 Draft Glossary - 37

Revision History:
Revised 6/5/06 for Release 12.0 (see draft for changes)
Revised 6/4/07 for Release 14.0 (see draft for changes)
Revised 12/9/07 for Release 15.0 (see draft for changes)
Revised 6/16/08 for Release 16.0 (see draft for changes)
Revised 12/8/08 for Release 17.0 (see draft for changes)
Revised 6/9/09 for Release 18.0 (see draft for changes)
Revised 6/14/10 for Release 19.0 (see draft for changes)

MERS Quality Assurance Procedures – Release 19.05 – 6/14/10 Draft Glossary - 38