default keep me up to date

8/7/2019 Default Keep Me Up To Date

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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

[email protected]
mailto:[email protected]:[email protected]


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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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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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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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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: [email protected]


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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)
http://www.mersinc.org/http://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







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







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 [email protected]) and

send copy of lawsuit or counterclaim

See MERS Rules of Membership, Rule 8 for additionalinformation
mailto:[email protected]:[email protected]


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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

([email protected]). 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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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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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([email protected])


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Pending (Option 1), assigned to Servicer

Assignment Standards

Prepare assignment from Mortgage ElectronicRegistration Systems, Inc. to other entity


(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


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.


(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


perform transaction


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Reinstate or Modify (option 3)

Pending (Option 3)Reinstated or Modified(Option 3)

Within seven calendar days


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


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