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.

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  1. Do FHA loans have prepayment penalties?

    Unlike subprime mortgages issued by some conventional commercial lenders, Federal Housing Administration (FHA) loans do not ... Read Full Answer >>
  2. Can FHA loans be refinanced?

    Federal Housing Administration (FHA) loans can be refinanced in several ways. According to the U.S. Department of Housing ... Read Full Answer >>
  3. Can FHA loans be used for investment property?

    Federal Housing Administration (FHA) loans were created to promote homeownership. These loans have lower down payment requirements ... Read Full Answer >>
  4. Do FHA loans have private mortgage insurance (PMI)?

    he When you make a down payment from 3 to 20% of the value of your home and take out a Federal Housing Administration (FHA) ... Read Full Answer >>
  5. 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 >>
  6. 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 >>

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