Post on 08-Apr-2018
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Default: Keep Me Up To Date
Julia Macnair
Rachel Weber
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Agenda
Property preservation
Loss mitigation
Modifications
Subordinations Assumptions
Bankruptcy Foreclosure
Taking title
Q & A
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PropertyPreservation
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Member Profile Changes
New member contact type
Property preservation contact: name, title, phone
and email
Visible on Member Summary page in MERS Link
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MIN Registration/Update
Property preservation Org IDs
Added during MIN registration
Added to an active MIN
Added to MIN in Foreclosure Complete status
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MIN Summary Information
Property preservation contact visible
MIN summary
MERS Link summary (if populated)
Org ID is hyperlink to Member Summary page withproperty preservation contact information
Org name is hyperlink to property preservation
companys URL
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Property Preservation
Kate Bonthius, Business Integration Manager
Direct: (703) 761-1283
Fax: (703) 748-0183
kateb@mersinc.org
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LossMitigation
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Paid In Full
Liquidation via lien released/extinguished in landrecords
Deed in lieu
Short sale Charge-off (See Training Bulletin 2009-04): only
applicable when lien release is recorded
Third party foreclosure
Payoff (performing loan)
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Paid in Full
Paid in full deactivation
If subservicer is named, only subservicer can perform
transaction
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Paid In Full QA:
Transactional Standards
Payoff
Change MIN status to Paid In Full, enter the Servicer
Liquidation Date (Effective Payoff Date) on the MERS
System within seven calendar days of payoff or
deactivation date on companys servicing system
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Paid In Full QA:
Document & Recording Standards
Lien release/reconveyance/discharge /satisfaction
Payoff or partial release for MOM and non-MOM:
Prepare lien release naming Mortgage Electronic
Registration Systems, Inc. as mortgagee, signed asMERS by officer authorized on MERS corporate
resolution
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Paid in Full QA:
Document and Recording Standards
Place MIN and Servicer Identification System phone(888-679-6377) on visible location on page 1 of lien
release but not in space reserved for county recorder
Send lien release for recording within state/county-imposed timeframes, or within 45 calendar days after
effective payoff date, whichever is shorter
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Paid In Full Reports
Paid in Full Verification Report (DK)
All payoff transactions or reversals entered in previous
processing cycle
Payoff Reject Report (DP) All batch payoff transactions or reversals, rejected in
previous cycle, along with reason for rejection
Deactivation Summary Report (DD)
All MINs deactivated since last processing cycle,
grouped by deactivation reason
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Reflecting Charge Offs
on the MERS System
Training Bulletin, Number 2009-04, Reflecting ChargeOffs on the MERS System, 06/30/2009
If a lien release or satisfaction is recorded for the
loan, the loan must be deactivated as Paid in Full onthe MERS System
For example, if you write off or charge off the last
$100 of a loan and release the lien, it is considered
Paid in Full
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Reflecting Charge Offs
on the MERS System
If the lien has been extinguished, the loan must bedeactivated on the MERS System because lien is no
longer valid
If a Deed in Lieu of Foreclosure is accepted, a Paid inFull deactivation is used even if no lien release or
satisfaction has been recorded, because lien is
extinguished by new deed
Use date the transferred deed was sent for recordingas Lien Release Sent Date
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Reflecting Charge Offs
on the MERS System
If you still intend to collect on now unsecured note,use a Transfer to Non-MERS Member deactivation
Enter 9999999 for New Servicer Org ID and your
organizations name and address for the Assignee
Example: second lien extinguished as a result of
foreclosure completed on first lien for that property
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Reflecting Charge Offs
on the MERS System
If lien remains valid even if accounting shows loan ascharged off, no deactivation needs to occur on the
MERS System
Loan remains active on the MERS System untileither satisfied on property sale or extinguished by
recording of new deed at which time the loan must
be deactivated as outlined above
Questions? Contact MERS Product PerformanceDepartment: ppd@mersinc.org
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Impact On Junior Lien Holder
In general: when first mortgage is in foreclosure,second loan or junior lien gets wiped out
Doesnt release borrower from debt
Lender pursues collection via promissory note signedby the borrower
Lender may charge off debt but pass it to collection
agency for recovery
MERS System must reflect appropriate status
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Modifications
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To record or not to record
If your investor requires you to record modificationagreement, modification info (including recording
information) must be entered into MERS System
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Training Bulletin 2008-07
Modification agreement volumes on the rise
Must maintain current lien information
System
Must include modification updates and recording details Applicable to cramdowns (i.e., loan modified during
bankruptcy)
County land records: abide by MERS QA document and
recording standards for modifications
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MERS System Release Bulletin 17.0
Lets members use batch update transaction to addnew modification agreement
All modification agreement information must be
provided, including recording information Batch process does not support updates to existing
modification agreement
See Technical Integration Handbook for flat file
specifications, or EDI Implementation Guide for EDIX12 specifications (www.mersinc.org)
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QA Document and Recording Standards
For Mom and Non-MOM Loans
Prepare doc naming Mortgage Electronic RegistrationSystems, Inc. as mortgagee, signed as MERS by
certifying officer, signed by lender representative in
individuals own capacity
Place MIN and Servicer Identification System phone
(888-679-6377) in visible location on page 1 but not
in space for county recorder
Send modification for recording (if required) no laterthan 7 calendar days after effective date of
agreement
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Subordinations
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Transactions & Documents
Lien type indicator
Registration
MIN update
Sample documents in the Quality AssuranceProcedures Manual
Subordination agreement
Subordination of lien
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Document & Recording Requirements For
MOM and Non-MOM Loans
Prepare doc naming Mortgage Electronic RegistrationSystems, Inc. as mortgagee, signed as MERS by
certifying officer, signed by lender representative in
individuals own capacity
Place MIN and Servicer Identification System phone
(888-679-6377) in visible location on page 1 but not
in space for county recorder
Send document for recording (if required) no laterthan seven calendar days after effective date of
agreement
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Assumptions
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Assumptions
Servicer or subservicer of MIN must update borrowerinfo on MERS System when loan is assumed
Action = assumption when
new borrower legally assumes responsibility foroutstanding mortgage debt
new borrower is added to existing loan obligation
existing borrower is legally removed from outstanding
mortgage debt
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Assumptions
During assumption all borrowers who remainobligated for loan must be entered as current
borrowers
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Document & Recording Requirements For
MOM and Non-MOM Loans
Prepare doc naming Mortgage Electronic RegistrationSystems, Inc. as mortgagee, signed as MERS by
certifying officer, signed by lender representative in
individuals own capacity
Place MIN and Servicer Identification System phone
(888-679-6377) in visible location on page 1 but not
in space for county recorder
Send document for recording (if required) no laterthan seven calendar days after effective date of
agreement
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Bankruptcy
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Bankruptcy
Training Bulletin 2008-6: bankruptcy dos and donts
No special transactions on the MERS System
If bankruptcy halts foreclosure, servicer should
choose: to reinstate loan, OR
keep in Foreclosure Pending mode, AND
remain consistent with this decision
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Bankruptcy
When debtor declares bankruptcy, a proof of claimcan be filed in the name of Mortgage Electronic
Registration Systems, Inc.
Motion for Relief from Stay may be filed in name ofMERS. If MERS is the moving party, MERS must also
be the note holder.
Disclose to court MERS/servicer relationship
If filed in name other than MERS, an assignment fromMERS must be filed and recorded
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Foreclosures
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Foreclosure Dos and Donts
When a member files a foreclosure in the name ofMERS:
DONT allege that MERS owns the note
DO always plead that MERS is the mortgagee asnominee of lender, its successors and assigns
DONT file foreclosure action as MERS if alleging note
is lost; certifying officers cannot file Lost Note
Affidavit in the name of MERS
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Foreclosure Dos and Donts
DO make sure note is endorsed in blank at the timeof foreclosure so MERS can be the holder
DONT plead MERS as a co-plaintiff
DO contact the MERS Law Dept. promptly ifborrower files counterclaim or contests MERS
standing (800-646-6377 or mers@mersinc.org) and
send copy of lawsuit or counterclaim
See MERS Rules of Membership, Rule 8 for additionalinformation
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In Florida
MERS has legal right to foreclose, but chooses not toexercise this right. Must assign out. See Rule 8.
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Other Foreclosure Reminders Per
Anouncement Bulletin 2009-06
If a member is named as defendant in lawsuitinvolving MOM mortgage loan that the member
originated, and MERS is not named as a defendant,
please alert MERS Law Department right away
(mers@mersinc.org). This should be done even when
the MERS member no longer holds any interest in the
mortgage loan. Do not simply ignore the lawsuit.
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Other Foreclosure Reminders Per
Anouncement Bulletin 2009-06
Any MERS member foreclosing a loan in membersname, or having MERS foreclose the lien as
mortgagee, and MERS holds another mortgage lien
for another mortgage loan on the property, member
should instruct its counsel that MERS must be named
as a defendant as the mortgagee for other mortgage
loan and be served with the lawsuit
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Other Foreclosure Reminders Per
Anouncement Bulletin 2009-06
Make sure that when MOM mortgages are recorded,county recorders and clerks are indexing mortgages
correctly to reflect MERS as the mortgagee,
grantee, etc.
Provide counsel representing MERS with proper
documentation, information and an explanation of
MERS and its interest in the mortgage.
When in doubt, contact MERS Law Dept(mers@mersinc.org)
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Pending (Option 1), assigned to Servicer
Assignment Standards
Prepare assignment from Mortgage ElectronicRegistration Systems, Inc. to other entity
Place MIN and Servicer Identification System phone
(888-679-6377) in visible location on page 1 of
assignment
Assignment must be signed by individual authorized
on members MERS corporate resolution
Send assignment for recording within 14 calendardays of status change on the MERS System
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Pending (Option 2), retained on MERS
Pending (Option 2), retained on MERS indicatesloan will remain in MERS name throughout
foreclosure process
Within seven calendar days of first legal action
If subservicer is named, then only subservicer can
perform transaction
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Pending (Option 3), iRegistration only
New for iRegistrations: iRegistration can only be entered into Pending (Option
3), iRegistration
Loan can be either reinstated into unique Option 3
reinstatement or deactivated by Foreclosure Complete
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Pending (Option 3), iRegistration only
iRegistrations blocked from using ForeclosurePending (Option 1), Assigned to Servicer
MIN Find group search can now search for new
foreclosure statuses
XML MIN Inquiry and Servicer History Responses will
provide new foreclosure statuses
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Reinstate or Modify (Option 1)
If MIN reinstates or modifies after pending status isreported, MERS System must be updated
If subservicer is named, then only subservicer can
perform transaction
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Reinstate or Modify (Option 1)
Pending (Option 1) Reinstated or Modified (Opt 1) Assigned back to MERS: if recording an assignment
back to MERS
Not assigned back to MERSDeactivate: if loan not
assigned back to MERS and deactivated from MERS
System
Convert to iRegistration: MOM and Non-MOMs in
Foreclosure Pending (Option 1), Assigned to Servicer:can be reinstated as an iRegistration if loan not
assigned back to MERS but kept active as an
iRegistration
R i M dif
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Reinstate or Modify
(Option 1) Assigned Back to MERS
If reinstating or modifying (Option 1) back to MERS,then assignment from servicer/investor/insurer back
to MERS must be executed
Prepare assignment to Mortgage Electronic
Registration Systems, Inc.
Place MIN and Servicer Identification System phone
(888-679-6377) in visible location on page 1 of
assignment Send assignment for recording within 14 calendar days
of status change on the MERS System
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All of thedocument
samples can bedownloaded from
the MERS
CorporateWebsite,
www.mersinc.org.
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Reinstate or Modify (option 2)
Pending (Option 2)Reinstated or Modified(Option 2)
Within seven calendar days
If subservicer is named, then only subservicer can
perform transaction
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Reinstate or Modify (option 3)
Pending (Option 3)Reinstated or Modified(Option 3)
Within seven calendar days
If subservicer is named, then only subservicer can
perform transaction
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Foreclosure Complete REOs
Deactivation transaction on the MERS System When loan in foreclosure sale and redemption period
expired, Foreclosure Complete transaction must be
performed:
Within 7 calendar days
Remain consistent using sale date or redemption
expiration date
If subservicer is named, then only subservicer canperform transaction
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System Corrections
Pending foreclosure status entered in error or statusnow invalid: perform Foreclosure Status Reset
transaction to change MIN back to active
If subservicer is named, then only subservicer can
perform transaction
To update/correct Reinstated or Modified MIN
status, perform Foreclosure Pending transaction
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System Corrections
If Foreclosure Complete has been reported in erroror sale rescinded, perform reversal transaction to
return MIN to previous status
Servicer and subservicer can perform deactivation
reversal transaction
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Foreclosure Reports
Foreclosure Verification Report (DA) Foreclosure transactions successfully entered since
previous processing cycle
Foreclosure Reject Report (DF)
Batch foreclosure transactions rejected during
previous cycle
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Foreclosure Reports
Past Due Foreclosure Terminations Report (DI) MINs in foreclosure pending that exceeded days
without update to foreclosure or MIN status
Deactivation Summary Report (DD)
MINs deactivated since last processing cycle
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Taking
Title
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Taking Title
In general MERS should not take title at end offoreclosure
May be unavoidable in CT, LA, MI, MN, MT, NM,SD,
TX and VT
Subsequent deed must be issued asap to servicer/
investor so MERS is not titleholder for extended period
If this happens, your MERS corporate resolution
appoints certifying officers with authority to executedeeds on behalf of MERS
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Reference Materials
Training Bulletin 2008-06: Reminder of RequirementsRegarding Motions for Relief from Stay and Proof of
Claims filed by MERS
Training Bulletin 2008-04: What a MERS in Title
Notification Means
Training Bulletin 2008-03: Member Responsibility to
Update MERS System Regarding Foreclosure Events
Announcement 2005-05: MERS SuspendsForeclosures in Florida
Rules of Membership, Rule 8
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Q & A