DEFINITION of 'Mortgage Electronic Registration System - MERS'

A process created by the mortgage banking industry that simplifies the mortgage process by using electronic commerce. The Mortgage Electronic Registration System (MERS) tracks ownership and servicing rights that are originated in the United States. It is used by the real estate finance industry residential and commercial mortgage loan trading. It is an original mortgagee (MOM) approved by Fannie Mae, Freddie Mac, Ginnie Mae, FHA and VA, California and Utah Housing Finance Agencies and all major Wall Street rating agencies.

BREAKING DOWN 'Mortgage Electronic Registration System - MERS'

MERS is a privately held company. Its system is used by mortgage originators, servicers, warehouse lenders, wholesale lenders, retail lenders, document custodians, settlement agents, title companies, insurers, investors, county recorders and consumers. It keeps track of a confidential electronic registry of mortgages and modifications to servicing rights and ownership of the loans.

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