Mortgage Electronic Registration System - MERS

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  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 Servicing Rights - MSR

    A contractual agreement where the right, or rights, to service ...
  4. Primary Mortgage Market

    The market where borrowers and mortgage originators come together ...
  5. Loan Servicing

    The administration aspect of a loan from the time the proceeds ...
  6. Conventional Mortgage

    A type of mortgage in which the underlying terms and conditions ...
Related Articles
  1. 4 Steps To Attaining A Mortgage
    Credit & Loans

    4 Steps To Attaining A Mortgage

  2. Profit From Mortgage Debt With MBS
    Bonds & Fixed Income

    Profit From Mortgage Debt With MBS

  3. Mortgage Points: What's The Point?
    Credit & Loans

    Mortgage Points: What's The Point?

  4. Understanding Your Mortgage
    Personal Finance

    Understanding Your Mortgage

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center