Mortgage Electronic Registration System - MERS


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.

  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Assumable Mortgage

    A type of financing arrangement in which the outstanding mortgage ...
  3. Mortgage Broker

    An intermediary who brings mortgage borrowers and mortgage lenders ...
  4. Mortgagee

    An entity that lends money to a borrower for the purpose of purchasing ...
  5. Conventional Mortgage

    A type of mortgage in which the underlying terms and conditions ...
  6. Mortgagor

    An individual or company who borrows money to purchase a piece ...
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  1. How many FHA loans can I have?

    Generally, the Federal Housing Administration (FHA) does not insure more than one mortgage per borrower. This is to prevent ... Read Full Answer >>
  2. Are FHA loans assumable?

    Loans insured by the Federal Housing Administration (FHA) on or after Dec. 15, 1989, are assumable by qualifying borrowers. ... Read Full Answer >>
  3. How accurate are online mortgage calculators?

    Online mortgage calculators are accurate to the extent that the calculator itself is asking for the right pieces of information ... Read Full Answer >>
  4. Are mortgage rates negotiable?

    Mortgages are just as negotiable as any other product or service. Whether it's a new home purchase or refinancing of an existing ... Read Full Answer >>
  5. Are FHA loans fixed?

    An FHA loan is a mortgage loan backed by the government that offers more flexible lending requirements than those of conventional ... Read Full Answer >>
  6. Does an FHA loan require a down payment?

    Federal Housing Administration (FHA) loans require down payments, which can be as low as 3.5% of the total purchase price ... Read Full Answer >>

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