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MERS System Procedures ManualRelease 38.0Effective Date: January 18, 2021

ContentsINTRODUCTION. 1CONVENTIONS IN USE IN THIS DOCUMENT . 1O VERVIEW OF THE MERS SYSTEM . 1Types of Loans Registered on the MERS System . 1MERS Loans . 2Registering Loans before Closing . 2Other MERS System Services. 2MIN Record Overview. 3SUPPORTING DOCUMENTATION . 4MERS SYSTEM MEMBERSHIP . 5REQUIREMENTS: MERS SYSTEM MEMBERSHIP . 5Loans Closed by a Lite-R Member. 5Requirements: Loans Closed by a Lite-R Member. 6PROCEDURE: MEMBER INTEGRATION . 6MEMBERSHIP CHANGES . 6Requirements: Membership Changes. 6Procedure: Membership Changes. 7MEMBER INFORMATION . 7Requirements: Maintaining Member Information . 7Procedure: Maintaining Member Information . 8Information Maintained by MERSCORP Holdings . 9MEMBER RESIGNATION . 9Requirements: Member Resignation . 9Procedure: Member Resignation .10Certificates of Ownership .11Procedure: Certificates of Ownership .11System Actions: Certificates of Ownership .11MERS ONLINE USER AUTHENTICATION .12MERS SYSTEM USER IDS .12REQUIREMENTS: SYSTEM SECURITY .13THIRD-PARTY VENDORS .13A SSOCIATED MEMBERS.14XML AND BATCH INQUIRY TRANSACTIONS .14MORTGAGE IDENTIFICATION NUMBER (“MIN”) .15PROCEDURE: CREATING A MIN.15LOAN REGISTRATION.16REQUIREMENTS: LOAN REGISTRATION .16Requirements: All Loan Registrations.16Requirements: MOM Loan Registrations.17MERS System Procedures Manual– Release 38.0 i

Requirements: Non-MOM Loan Registrations.17REQUIREMENTS: MERS SYSTEM DATA INTEGRITY .17PROCEDURES : L OAN REGISTRATION.20Procedure: MERS Loan Registration .20Procedure: Completing a Pre-Closing Registration.21Procedure: Re-registration after Reversal.21Procedure: Re-registration after Deactivation.22SYSTEM A CTIONS : L OAN REGISTRATION.22REGISTRATION REVERSAL .24Requirements: Registration Reversal .24Procedure: Registration Reversal.25System Actions: Registration Reversal .26INTERIM FUNDING INTERESTS .27REQUIREMENTS: REMOVING AN INTERIM FUNDING O RG ID .27PROCEDURE: REMOVING AN INTE RIM FUNDING O RG ID .27SYSTEM A CTIONS : REMOVING AN INTERIM FUNDING O RG ID .28TRANSFERS .29TRANSFER OF BENEFICIAL RIGHTS.29Requirements: TOB Transactions.30TOB Option 1 Transfer .30Procedure: TOB Option 1 Transfer .31System Actions: TOB Option 1 Transfer .31TOB Option 2 Transfer .32Procedure: TOB Option 2 Transfer .33System Actions: TOB Option 2 Transfer .33TRANSFER OF SERVICING RIGHTS .35Requirements: TOS Transactions .36Procedure: TOS Transaction .37System Actions: TOS Transaction.38TOS/TOB COMBINATION.41Requirements: TOS/TOB Combo Transactions.41Procedure: TOS/TOB Combo Transaction.41System Actions: TOS/TOB Combo .42MEMBER-TO -MEMBER PETITIONS .44Requirements: Member-to-Member Petition .44Procedure: Member-to-Member Petition .44MEMBER NOTICE OF DEFAULT (“NOD”) DISPUTE .45Procedure: Member NOD Dispute .45MIN RECORD DEACTIVATION.46PAID IN FULL DEACTIVATION.47Requirements: Paid in Full Deactivation.47Procedure: Paid in Full Deactivation.47System Actions: Paid in Full Deactivation.48TRANSFER TO NON-MERS STATUS DEACTIVATION.48MERS System Procedures Manual– Release 38.0 ii

Requirements: Transfer to Non-MERS Status Deactivation .48Procedure: Transfer to Non-MERS Status Deactivation .49System Actions: Transfer to Non-MERS Status Deactivation .49DEACTIVATE-A SSIGNED FROM MERS FOR DEFAULT OR BANKRUPT CY DEACTIVATION .49Requirements: Deactivate-Assigned from MERS for Default or Bankruptcy Deactivation .49Procedure: Deactivate-Assigned from MERS for Default or Bankruptcy Deactivation .50System Actions: Deactivate-Assigned from MERS for Default or Bankruptcy Deactivation .50FORECLOSURE COMPLETE DEACTIVATION (INITIATED BEFORE 7/22/11) .51Requirements: Foreclosure Complete Deactivation .51Procedure: Foreclosure Complete Deactivation.51System Actions: Foreclosure Complete Deactivation .52DEACTIVATION REVERSALS .52Requirements: Deactivation Reversals.52Procedure: Deactivation Reversals .53System Actions: Deactivation Reversals.53MODIFICATION AGREEMENTS .54REQUIREMENTS: MODIFICATION A GREEMENTS.54PROCEDURE: MODIFICATION A GREEMENTS .54SYSTEM A CTIONS : MODIFICATION A GREEMENTS.54CONSTRUCTION AND CEMA LOANS.55REQUIREMENTS: CONSTRUCTION AND CEMA LOANS .55PROCEDURES : CONSTRUCTION L OANS .55Procedure: Construction Loan Modified to Become Permanent .55Procedure: Construction Loan Paid off by Permanent Loan .56PROCEDURE: CEMA L OAN REGISTRATION .56SYSTEM A CTIONS : CONSTRUCTION AND CEMA L OANS .56ASSUMPTION OF MORTGAGE.57REQUIREMENTS: ASSUMPTION OF MORTGAGE .57PROCEDURE: A SSUMPTION OF MORTGAGE .57SYSTEM A CTIONS : A SSUMPTION OF MORTGAGE .57PROPERTY PRESERVATION .58PROCEDURE: PROPERTY PRESERVATION MEMBER UPDATES .58PROCEDURE: PROPERTY PRESERVATION MIN UPDATES .58SYSTEM A CTIONS : PROPERTY PRESERVATION.58MERS SYSTEM QUALITY ASSURANCE PROGRAM.60REQUIREMENTS: MERS SYSTEM QA PROGRAM .60MERS SYSTEM QA PLAN .60Requirements: MERS System QA Plan.61Procedure: MERS System QA Plan Submission .61A NNUAL REPORT .61Requirements: Annual Report .61Procedure: MERS System Annual Report Submission .62MERS System Procedures Manual– Release 38.0 iii

DATA RECONCILIATION .62Requirements: Data Reconciliation .62Member Reconciliation Extract (MRE) .63MERS Loan Data Reconciliation Requirements .

by the Procedures and any amendments made to it. If a Member believes that there is a conflict between the requirements set forth in the Procedures and the requirements of any trading partner or jurisdiction, the Member should contact the MERSCORP Holdings, Inc. (“MERSCORP Holdings”) Help Desk at helpdesk@mersinc.org.