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  • / Subpart B8: Closing: Legal Documents
  • / Chapter B8-7: Mortgage Electronic Registration System (MERS)

B8-7-01, Mortgage Electronic Registration Systems (MERS), Inc. (12/13/2023)

Introduction.

The MERS system is an electronic system that assists in the tracking of loans, servicing rights, and security interests. To initiate the electronic tracking, the seller/servicer assigns a special MERS Mortgage Identification Number (MIN) to the loan and registers it in MERS. This topic contains information about MERS, including:

  • Naming MERS as the Nominee for the Beneficiary in the Security Instrument 
  • Requirements for the Use of MERS in Specified Geographic Areas 
  • MERS Registration 
  • Use of the MIN 
  • Mortgage Assignment to MERS 
  • Termination of MERS 

Naming MERS as the Nominee for the Beneficiary in the Security Instrument

A seller/servicer that wants to register a newly originated loan (but not a co-op share loan) with MERS may prefer to designate MERS as the nominee for the beneficiary in the security instrument. Doing so, eliminates the need for a subsequent assignment of the security instrument should the seller/servicer sell (or transfer servicing of) the loan to another seller/servicer that is a member of MERS. In such cases, the applicable security instrument must be modified to:

show MERS as the nominee for the seller/servicer,

define and name the originating seller/servicer, and

obtain the borrower’s acknowledgment of MERS’ role in the mortgage transaction.

If the seller/servicer encounters a situation where Fannie Mae is the owner of record for a loan because the original assignment of the loan to Fannie Mae was recorded in the public records, the seller/servicer must correct the error before it completes the MERS registration by:

preparing an assignment of the loan from Fannie Mae to MERS,

sending the assignment to Fannie Mae for execution, and

recording the assignment in the public records.

Changes that must be made to create a standard MERS security instrument for each jurisdiction may be found in the Instructions document for each state-specific security instrument (see Fannie Mae's Legal Documents  website), with the exception of loans secured by property located in certain geographic areas, as described below.

The seller/servicer is responsible for the accurate and timely preparation and recordation of the security instrument and any MERS-related documents required to be used in specific geographic areas. Sellers/servicers must also take all reasonable steps to ensure that information pertaining to MERS is updated and accurate at all times.

Even when MERS is named as the nominee for the beneficiary in the security instrument, it has no beneficial interest in the mortgage. All actions that MERS takes with respect to a loan are based on the instructions initiated by the originating seller, Fannie Mae, or the servicer. The originating seller remains responsible for all of its Contractual Obligations and any liability that it or Fannie Mae incurs as a result of the MERS registration, any MERS transaction, or the failure of MERS to perform any obligation with respect to a MERS-registered loan. In addition, the seller/servicer is solely responsible for any failure to comply with the provisions of its MERS Member Agreement, Rules, and Procedures.

Requirements for the Use of MERS in Specified Geographic Areas

In the states listed below, sellers/servicers must use the Mortgage Electronic Registration Systems, Inc. Rider (MERS Rider) ( Form 3158 ) when a newly originated loan will be registered with MERS. Sellers/servicers must also follow the Instructions to the MERS Rider and the applicable security instruments to make changes to the standard security instruments for the following states:

Oregon, and

Washington.

As the MERS Rider must be used in these specified states, post-closing assignments to MERS are prohibited.

MERS Assignment Form - Maine

In the state of Maine, sellers/servicers must use the MERS Mortgage Assignment (Form 3749) to assign loans to MERS at origination or post-closing, as applicable. Loans in which the Maine security instrument has been modified to name MERS as the original mortgagee of record, solely as nominee for the seller/servicer, are ineligible for delivery to Fannie Mae.

MERS Registration

If a seller/servicer registers a loan on the MERS system before delivering it to Fannie Mae, the seller/servicer must ensure that the MIN is registered in MERS and names itself as the investor. Additionally, the seller/servicer must include the MIN in the delivery data. After Fannie Mae purchases or securitizes the mortgage, Fannie Mae notifies MERS to update its records to reflect Fannie Mae’s ownership interest in the loan.

Note : For loans registered in MERS iRegistration where MERS is not named as the nominee for the beneficiary in the security instrument, the MERS MIN should not be reported on the loan schedules, unless the loan is an eMortgage registered on MERS eRegistry.

If a seller/servicer registers a mortgage with MERS after Fannie Mae has purchased or securitized the loan, the seller/servicer must name Fannie Mae as the investor during registration and notify MERS of Fannie Mae’s ownership interest in the loan.

Use of the MIN

For each MERS-registered loan delivered to a document custodian, the seller/servicer must indicate the MIN on the security instrument and related documents. Because the status of a MERS-registered mortgage can change, the seller/servicer is not required to include the MIN on the note. Additionally, the seller/servicer is still responsible for making sure that the document custodian has sufficient information to determine whether a loan that is included in a subsequent transfer of servicing is registered with MERS at the time of the transfer. The seller/servicer must have adequate controls in its processes to enable it to readily identify MERS-registered mortgages.

The seller/servicer can choose from the following options:

place the MIN on the note when the loan is registered with MERS and, if the MERS registration is subsequently terminated for any reason, notify the document custodian to delete the MIN from the note;

wait to advise the custodian of the status of the MERS registration for a loan until a change in status actually occurs; or

notify the custodian about the status of the MERS registration for a loan at the time of a servicing transfer by providing the custodian with a listing of all MERS-registered loans that are included in the transfer and a certification that any and all other loans included in the transfer are not currently registered with MERS. (The listing may be prepared by the seller/servicer or, with the seller/servicer’s authorization, by MERS.) If there are more MERS-registered loans included in the transfer than there are unregistered loans, the listing may instead identify the unregistered loans—and, in that case, the certification should state that any and all other loans included in the transfer are currently registered with MERS.

Mortgage Assignment to MERS

If the originating seller/servicer is the beneficiary for a loan that it registers with MERS, they must prepare an assignment of the mortgage to MERS. Refer to the section above, entitled Requirements for the Use of MERS in Specified Geographic Areas , for additional information about, and restrictions on, assignments of loans to MERS. 

By delivering a MERS-registered loan to Fannie Mae, the seller/servicer:

warrants that MERS is the mortgagee of record (either by being named as an assignee in a recorded assignment of the security instrument or as nominee for the beneficiary in the security instrument); and

warrants that the MIN is valid and properly registered in MERS naming the seller/servicer as the investor.

Sellers/servicers are not required to include a copy of the assignment of the loan to MERS in the delivery package they submit to the applicable document custodian.

Termination of MERS

If the seller/servicer decides to discontinue the use of MERS, they must request from MERS that the loan be “deactivated” in MERS. MERS will notify Fannie Mae about the deactivation of any loan in which it has an interest.

If the seller/servicer’s membership in MERS is terminated, the seller/servicer must promptly notify Fannie Mae’s MERS Program Office (see E-1-02, List of Contacts ).

In the event that either its membership in MERS or the MERS registration for an active loan is terminated for any reason while Fannie Mae has an ownership interest in the loan, the seller/servicer must perform the functions outlined in the following table for each MERS-registered loan that it is servicing for Fannie Mae.

Recent Related Announcements

The table below provides references to recently issued Announcements that are related to this topic.

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Understanding the Assignment of Mortgages: What You Need To Know

3 minute read • Upsolve is a nonprofit tool that helps you file bankruptcy for free.  Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we'll never ask you for a credit card.  Explore our free tool

A mortgage is a legally binding agreement between a home buyer and a lender that dictates a borrower's ability to pay off a loan. Every mortgage has an interest rate, a term length, and specific fees attached to it.

Attorney Todd Carney

Written by Attorney Todd Carney .  Updated November 26, 2021

If you’re like most people who want to purchase a home, you’ll start by going to a bank or other lender to get a mortgage loan. Though you can choose your lender, after the mortgage loan is processed, your mortgage may be transferred to a different mortgage servicer . A transfer is also called an assignment of the mortgage. 

No matter what it’s called, this change of hands may also change who you’re supposed to make your house payments to and how the foreclosure process works if you default on your loan. That’s why if you’re a homeowner, it’s important to know how this process works. This article will provide an in-depth look at what an assignment of a mortgage entails and what impact it can have on homeownership.

Assignment of Mortgage – The Basics

When your original lender transfers your mortgage account and their interests in it to a new lender, that’s called an assignment of mortgage. To do this, your lender must use an assignment of mortgage document. This document ensures the loan is legally transferred to the new owner. It’s common for mortgage lenders to sell the mortgages to other lenders. Most lenders assign the mortgages they originate to other lenders or mortgage buyers.

Home Loan Documents

When you get a loan for a home or real estate, there will usually be two mortgage documents. The first is a mortgage or, less commonly, a deed of trust . The other is a promissory note. The mortgage or deed of trust will state that the mortgaged property provides the security interest for the loan. This basically means that your home is serving as collateral for the loan. It also gives the loan servicer the right to foreclose if you don’t make your monthly payments. The promissory note provides proof of the debt and your promise to pay it.

When a lender assigns your mortgage, your interests as the mortgagor are given to another mortgagee or servicer. Mortgages and deeds of trust are usually recorded in the county recorder’s office. This office also keeps a record of any transfers. When a mortgage is transferred so is the promissory note. The note will be endorsed or signed over to the loan’s new owner. In some situations, a note will be endorsed in blank, which turns it into a bearer instrument. This means whoever holds the note is the presumed owner.

Using MERS To Track Transfers

Banks have collectively established the Mortgage Electronic Registration System , Inc. (MERS), which keeps track of who owns which loans. With MERS, lenders are no longer required to do a separate assignment every time a loan is transferred. That’s because MERS keeps track of the transfers. It’s crucial for MERS to maintain a record of assignments and endorsements because these land records can tell who actually owns the debt and has a legal right to start the foreclosure process.

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Assignment of Mortgage Requirements and Effects

The assignment of mortgage needs to include the following:

The original information regarding the mortgage. Alternatively, it can include the county recorder office’s identification numbers. 

The borrower’s name.

The mortgage loan’s original amount.

The date of the mortgage and when it was recorded.

Usually, there will also need to be a legal description of the real property the mortgage secures, but this is determined by state law and differs by state.

Notice Requirements

The original lender doesn’t need to provide notice to or get permission from the homeowner prior to assigning the mortgage. But the new lender (sometimes called the assignee) has to send the homeowner some form of notice of the loan assignment. The document will typically provide a disclaimer about who the new lender is, the lender’s contact information, and information about how to make your mortgage payment. You should make sure you have this information so you can avoid foreclosure.

Mortgage Terms

When an assignment occurs your loan is transferred, but the initial terms of your mortgage will stay the same. This means you’ll have the same interest rate, overall loan amount, monthly payment, and payment due date. If there are changes or adjustments to the escrow account, the new lender must do them under the terms of the original escrow agreement. The new lender can make some changes if you request them and the lender approves. For example, you may request your new lender to provide more payment methods.

Taxes and Insurance

If you have an escrow account and your mortgage is transferred, you may be worried about making sure your property taxes and homeowners insurance get paid. Though you can always verify the information, the original loan servicer is responsible for giving your local tax authority the new loan servicer’s address for tax billing purposes. The original lender is required to do this after the assignment is recorded. The servicer will also reach out to your property insurance company for this reason.  

If you’ve received notice that your mortgage loan has been assigned, it’s a good idea to reach out to your loan servicer and verify this information. Verifying that all your mortgage information is correct, that you know who to contact if you have questions about your mortgage, and that you know how to make payments to the new servicer will help you avoid being scammed or making payments incorrectly.

Let's Summarize…

In a mortgage assignment, your original lender or servicer transfers your mortgage account to another loan servicer. When this occurs, the original mortgagee or lender’s interests go to the next lender. Even if your mortgage gets transferred or assigned, your mortgage’s terms should remain the same. Your interest rate, loan amount, monthly payment, and payment schedule shouldn’t change. 

Your original lender isn’t required to notify you or get your permission prior to assigning your mortgage. But you should receive correspondence from the new lender after the assignment. It’s important to verify any change in assignment with your original loan servicer before you make your next mortgage payment, so you don’t fall victim to a scam.

Attorney Todd Carney

Attorney Todd Carney is a writer and graduate of Harvard Law School. While in law school, Todd worked in a clinic that helped pro-bono clients file for bankruptcy. Todd also studied several aspects of how the law impacts consumers. Todd has written over 40 articles for sites such... read more about Attorney Todd Carney

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What Is the Mortgage Electronic Registration System (MERS)?

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

mers assignment

Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest.

mers assignment

Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom.

mers assignment

What Is a Mortgage Electronic Registration System—MERS?

The Mortgage Electronic Registration System (MERS) is a database created by the mortgage banking industry. A confidential electronic registry of mortgages originated in the United States, it keeps track of transfers of and modifications to servicing rights and ownership of the loans. It is used by the real estate finance industry for residential and commercial mortgage loan recording trading.

MERS, which also refers to the privately held company that manages the database, is approved by such government-sponsored enterprises as the Federal National Mortgage Association ( Fannie Mae) , the Federal Home Loan Mortgage Corporation ( Freddie Mac) , and the Government National Mortgage Association ( Ginnie Mae) , along wth such government agencies as the Federal Housing Administration (FHA) and the Department of Veterans Administration (VA) that are involved in housing loans. The California and Utah Housing Finance Agencies and all major Wall Street rating agencies make use of it as well.

Key Takeaways

  • Mortgage Electronic Registration System (MERS) is a privately owned database that the mortgage banking industry created to simply the registration and transfer of mortgages.
  • By tracking mortgage transfers electronically, MERS eliminates the need of a lender to register the transfer with the county recorder every time the loan is sold from one bank to another.
  • Sometimes MERS itself is designee as the mortgage lender (mortgagee).
  • While MERS can save time and recording costs, it has drawn criticism for making it difficult to see who actually is the current owner of a mortgage.

Understanding the Mortgage Electronic Registration System—MERS

Each time a mortgage is sold from one bank to another, an assignment—a document showing that the mortgage has been transferred—is, theoretically, prepared and recorded in the county land records. The assignment transfers all of the interest the original lender had under the mortgage to the new bank.

By tracking loan transfers electronically, MERS eliminates the long-standing practice that the lender must record an assignment with the county recorder every time the loan is sold from one bank to another.

The MERS 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. County and regulatory officials and homeowners can access MERS free of charge. Homeowners can look up information on their own mortgages that are registered with the system.

In order to use the electronic tracking, the servicer of the mortgage assigns it with a mortgage identification number (MIN) and then registers the loan with the MERS database. Sometimes, MERS itself is designated as the mortgagee, as the original lender is officially called in the mortgage documents; such a loan is known as an original mortgagee (MOM) loan. From there, the seller can originate the mortgage with MERS as a nominee of the lender (also referred to as the beneficiary), and then assign or record the assignment of the loan to MERS in the county land record. This would make MERS the mortgagee of record.

While MERS can act as mortgagee in county land records, it doesn't actually own the mortgage loan.

If the lender sells the loan, MERS will update its information regarding the mortgage. The servicer of a mortgage can have it removed from the MERS database by sending a request to have it deactivated. MERS will, in turn, notify Fannie Mae. If the servicer of a mortgage wants to end their membership with MERS entirely, it must also notify Fannie Mae as soon as possible.

Pros and Cons of the Mortgage Electronic Registration System—MERS

As an electronic, one-stop site for mortgage documents—deeds of trust and promissory notes—MERS greatly simplifies the mortgage process. MERS can act as a cost-saving measure to some degree because, by acting as a mortgagee, it cuts the expense of recording the transfer of a mortgage from one lender to another. Having the loan in MERS’ name (as nominee) in the land records saves time and recording costs because multiple assignments aren't necessary each time the loan changes hands.

The database has drawn some criticism, though. During the 2008 housing crisis , the system made it difficult at times to sort out who actually owned mortgages. That created a challenge for homeowners facing foreclosure or relief from their loans, as they needed to know who held their mortgages in order to work out some form of remedy.

MERS. " About Us Frequently Asked Questions ."

MERS. " Quick Facts ," Page 1.

MERS. " Homeowners ServicerID ."

MERS. " MERS System Frequently Asked Questions ."

Govinfo.gov. " Problems in Mortgage Servicing from Modification to Foreclosure ."

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mers assignment

MORTGAGE ELECTRONIC REGISTRATION SYSTEMS (MERS) by Christopher J. Beck, ATG Senior Law Clerk

Introduction

Mortgage Electronic Registration Systems, Inc. (MERS) provides a centralized registry for tracking ownership interests and servicing rights of mortgages. As the number of mortgages registered with MERS grows, MERS increasingly will appear in the chain of title. This article will address the following questions when dealing with transactions in which MERS is in the chain of title:

  • How should an assignment to MERS appear in the chain of title?
  • May a mortgage and an assignment to MERS be combined into a single document?
  • How does one obtain a payoff letter and release for a mortgage assignment to MERS, and how does this appear in the chain of title?

MERS - owned by several companies involved in the mortgage finance industry - began in 1995 as a member-owned, non-stock corporation. It was created to address the problems associated with tracking the beneficial interests and servicing rights of mortgages due to the increased number of transactions in secondary markets. The goal was to make the tracking of the secondary mortgage assignments more similar to the stock market. Thus, an electronic registry was created to track such assignments of rights.

For MERS to be effective, mortgages must be properly registered with the MERS system. Each mortgage is assigned an individual Mortgage Identification Number (MIN) that tracks the mortgage for its life. The MERS system depends on MERS being named as the mortgagee of record in the county public records. This may be done in one of two ways. First, MERS can be identified as the nominee for the lender on the mortgage itself (referred to as "MERS as Original Mortgagee" or MOM). If the mortgage does not name MERS as the original mortgagee, then the mortgage can be assigned to MERS. The mortgage would begin as a typical mortgage, and as such it must be recorded in the county recorder's office. The mortgage would then be assigned to MERS, with the assignment being recorded in the public records. At this point, under either method MERS will be the assignee or mortgagee of record for the life of the mortgage. Assignments are not made outside of the MERS system. At this point, the chain of title will stop with MERS. MERS will internally track all subsequent assignments of interests and rights as long as the mortgage interests remain with a MERS member.

Benefit of MERS

The benefit of MERS is to create efficiency in secondary mortgage markets, thereby reducing costs. MERS relies on the current mortgage recording laws and procedures so that it may perform its goals, and is not meant to in any way replace governmental recording functions. MERS members are expected to update the transfers within the system. MERS has acknowledged that it is critical to its success that they accurately keep track of assignments. Interested parties are putting a considerable amount of trust in the accuracy of the MERS system and in its members diligently updating records.

How Should an Assignment to MERS Appear on the Chain of Title?

Signed mortgage documents are recorded in the county land records to make a public record of the security interest (in the form of a mortgage or a deed of trust). If MERS is not identified as the original mortgagee, an assignment must be recorded naming MERS as the mortgagee when the loan is registered on the MERS system. An assignment to MERS should appear like any other assignment. An assignment naming MERS as the assignee of record is prepared and recorded with the county recorder's office. MERS will be the assignee of record for the life of the loan and the chain of title should end with MERS unless the rights are assigned to a non-MERS member, a foreclosure, etc.

May a Mortgage and an Assignment to MERS Be Combined into a Single Document?

Beginning in 1997, it has been possible to name MERS as the original nominal mortgagee (MOM), eliminating the need for a subsequent assignment to MERS. If MERS is named as the nominee for the lender, there is no need for an assignment to MERS and no further recorded or unrecorded assignments are necessary as long as the loan remains on MERS. After the initial step naming MERS as mortgagee of record, the subsequent treatment of the mortgage is the same whether it was initially created through an assignment or through MOM. MERS prefers to be named as the original mortgagee because it eliminates the need for a subsequent assignment.

How Does One Obtain a Payoff Letter and Release for a Mortgage Assignment to MERS, and How Does This Appear in the Chain of Title?

Obtaining a payoff or release should be a simplified process for mortgages registered with MERS. It is the obligation of the MERS member currently servicing a loan to de-activate the loan on the MERS system and to prepare and send a lien release to the county recorder's office. To find out the name of the servicer, non-MERS members will have to call the MERS Voice Response Unit (VRU) and obtain the servicer's name, address, contact person, and phone number. It will be necessary to contact the servicer because the MERS system will not give out payoff information. It is the responsibility of the servicer to give out all payoff information.

The loan servicer will send a lien release to the county recorder's office. The release should contain the MIN and the telephone number to access the MERS VRU, which is the number the general public may call to obtain information about the MERS servicer. The number for the VRU is 1-888-679-MERS (679-6377). To access this service, callers will have to know either the MIN or the social security number of the borrower. If an inquirer lacks this information, he or she will still be able to access this information by calling the MERS Help Desk at 1-888-680-MERS (6377), provided one can provide the mortgagor's name or the property address. If a non-MERS member does not have any of the above information, the MIN should be available at the county clerk's office once the lien release has been recorded. "MERS has made a commitment to provide access to its system to county recorders and to the public generally," and the county recorder should be able to get people the information they need. 1997 Ill. Atty.Op.Gen No. 97-008.

As MERS becomes more prominent in the mortgage industry, title agents and companies may have to adapt some of their methodology and procedures to conform to the MERS system. While this initially may prove to be an inconvenience, the title industry should ultimately benefit from increased mortgage tracking efficiency that MERS will provide.

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One simple system of record

The MERS ® eRegistry is the mortgage industry’s "system of record" for holders of eNotes. Its role is to indicate who holds the authoritative copy of the eNote, resulting in a seamless process for you, your borrowers, and your trading partners. The MERS ® eRegistry is designed to make your transition from paper promissory notes to eNotes convenient and secure as you move into the eMortgage space.

Save money and eliminate breaks in the chain of title

Reduce the costs associated with transferring mortgage rights by erasing the need for certain paper assignments.

MERS ® System

A national electronic database that tracks changes in mortgage servicing rights and beneficial ownership interests in loans secured by residential real estate.

MERS ® eRegistry

MERS ® eRegistry is the legal system of record for identifying the Controller (holder) and Location (custodian) for the authoritative copy of a registered eNote.

MERS ® eDelivery

Provide a secure method for distributing documents in any electronic format (SMART Doc, PDF, TIFF, etc.) from one MERS ® eRegistry user to another, using the existing MERS ® eRegistry infrastructure and transaction security requirements.

“As early adopters of eNotes and RONs on the MERS ® eRegistry, at Mr. Cooper, we have been able to engage eNote originators as experts in the eMortgage space.” Bryan Budd SVP, Operations & Co-issue Mr. Cooper
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Promissory Notes, Mortgage Assignments, and MERS’ Role in Real Estate

Promissory Notes, Mortgage Assignments, and MERS’ Role in Real Estate

mers assignment

After the fall out of the subprime mortgage crisis that triggered the Great Recession, the effects still linger when looking at homeownership statistics in the United States. Nearly 10 million homeowners lost their homes to foreclosure between 2006 and 2014. Damaged credit and traumatized psyches paired with stricter lending standards and soaring median home prices mean that some former homeowners will never own another home.

Today, the United States is seeing the highest rates of unemployment since the Great Depression at nearly 15%  due to the COVID-19 pandemic, and of those who still own a home, nearly 4.1 million borrowers are struggling to make their monthly payments. Many are turning to forbearance for momentary relief from their mortgages.

For many homeowners, the question of what happens to their mortgage after closing day might not ever come up. Until the threat of foreclosure or the need for forbearance arises, most borrowers simply send in their monthly payments with no questions asked.

Now is a good time to consider the process after closing, and how it affects their property rights. Here are some of the questions to ask.

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What happens after a real estate closing?

  • At closing, the borrower signs the mortgage, the deed, and the promissory note
  • The mortgage and the deed are recorded in the public record
  • The promissory note is held by the lender while the loan is outstanding
  • Payments are sent to the mortgage servicing company
  • The mortgage may be securitized and sold to investors
  • The mortgage may be transferred to another bank
  • The mortgage servicing rights may change to another company
  • When the mortgage is paid in full, a mortgage lien release or satisfaction with a number referencing the original mortgage loan is recorded in the public record to show the debt is no longer outstanding
  • The promissory note is marked as paid in full and returned to the borrower

Banks often sell and buy mortgages from each other as a way to liquidate assets and improve their credit ratings. When the original lender sells the debt to another bank or an investor, a mortgage assignment is created and recorded in the public record and the promissory note is endorsed.

What are Loan Transfer Documents?

Assignments and endorsements prove who owns the debt and subsequently who has the authority to bring foreclosure action.

Mortgage Assignments

A Mortgage Assignment is a document showing a mortgage loan has been transferred from the originator to a third party.

Note Endorsements

In addition to the assignment, the originator of the loan or the most recent holder of the loan must endorse (or sign over) the promissory note whenever the loan changes hands. Sometimes, the note is endorsed “in blank,” which means that any party that possesses the note has the legal authority to enforce it.

While these documents are supposed to be recorded in the public land records systems, sometimes there’s a “break” in the chain. A missing mortgage satisfaction or assignment can cause a huge headache for homeowners when they go to sell. Without knowing who the official mortgage lienholder of the property is, the home can’t be sold. The title agent in charge of the closing is tasked with fixing the issue so that clear ownership rights can be established and the final mortgage payoff can be sent to the right lender if needed.

What is Mortgage Securitization?

In the last 30 years or so, the buying and selling of mortgage loans between lenders, banks, and investors has grown more complicated. When a mortgage is turned into a security, it’s pooled with similar types of loans and sold on the secondary mortgage market. The purchasers or investors in these securities receive interest in principal payments.

Securitization is good for lenders because it allows them to sell mortgage loans from their books and use that money to make more loans.

Where securitization goes wrong, as we saw during the housing crisis, is when bad or “toxic” assets are pooled together and sold on the secondary market to unsuspecting investors. Subprime mortgage-backed securities had received high ratings from credit agencies and offered a higher interest rate, but they also were the first to hemorrhage losses when borrowers began defaulting on homes with underwater mortgages.

Securitization isn’t an inherently good or bad process, it’s simply a mechanism by which banks liquidize assets, increase their credit and ratings, and clear their balance sheets.

For homeowners, securitization means that the mortgage isn’t owned by a single lender and is instead part of a pool of mortgages owned by investors. A mortgage service company is responsible for collecting the mortgage payments and sending it to the proper investors. Securitization also means that tracking the note and who has the authority to enforce it can get messy.

What is the Mortgage Electronic Registration System, Inc. or MERS?

The MERS system is a private, third-party database system used to track servicing rights and ownership of mortgages in the United States. This system of registering the promissory note and mortgage was created to make transferring these documents easier on the secondary mortgage market.

How does MERS work?

For some real estate transactions, the mortgage originator will designate MERS as the mortgagee at closing. These loans are called MERS as Original Mortgagee (MOM) loans. When buying a home, a borrower should see clear language on the mortgage or deed of trust document granting and conveying legal title of the mortgage to MERS as mortgagee. This gives the company the right to act on behalf of the current and subsequent owners of the loan.

In other transactions, the loan may be assigned to MERS in the public record at a later date after closing.

After MERS is designated as a nominee to act on behalf of the lender, it tracks the transfers of the loans between parties and acts as a nominee for each holder. This eliminates the need to file separate assignments in the public record each time the loan is transferred. If a lender sells the loan, MERS will update this information in their system.

Even though MERS is designated as the mortgagee, it doesn’t own the debt or hold the promissory note. MERS doesn’t service mortgages or collect payments on mortgages.

Benefits of MERS

Some of the benefits of the MERS system include:

  • No document drafting fees
  • Eliminates the need for multiple assignments each time the loan changes hands
  • Reduces recording costs
  • Saves time and administrative costs for lenders and servicers
  • Provides the identification of servicers and investors for free for homeowners and lenders
  • Used by Lenders to find undisclosed liens
  • Used by municipalities to find companies responsible for maintaining vacant and abandoned properties
  • Mortgage Identification Numbers (MIN) are assigned to each loan for easy tracking
  • Selling of loans and servicing transfers are more efficient in the secondary market
  • Obtaining lien releases when a lender goes out of business is simplified
  • Cost savings by the mortgage industry is theoretically passed on to homeowners

Does MERS really save consumers money?

The MERS system is not meant to act as a replacement for public land records. However, some states, including Kentucky, New York, Texas, Alabama, and Delaware have sued the company that controls MERS for lost revenue from missing record filing fees. In the case of Kentucky , the state alleged that MERS did not record mortgage assignments with Kentucky County Clerks as they were transferred between banks. At $12 a recording, all those transfers without corresponding mortgage assignments add up to big bucks.

Despite numerous lawsuits challenging MERS over its mortgage assignment authority, the company that controls MERS usually receives favorable judgments . In 2016, courts in Texas ruled that MERS’ mortgage assignments were valid and dismissed two cases. County recorders in Pennsylvania also brought cases claiming that MERS and MERS System members failed to record mortgage assignments when transferring promissory notes, a violation of Pennsylvania recording laws. MERS emerged as the winner of these lawsuits as well.

Kentucky and other states argue that skipping out on these fees hurt the consumers and taxpayers in their states.

What is MERS role in foreclosures?

Depending on the state, a foreclosure process might be either judicial (reviewed by a judge in court) or nonjudicial. In the past, MERS, acting on behalf of lenders, has been named as the plaintiff in foreclosure proceedings. Sometimes MERS was even listed as the beneficiary in nonjudicial notices.

Whether or not MERS has the authority to file foreclosure as either the plaintiff or beneficiary is hotly contested. Some states have ruled that MERS doesn’t have standing to foreclose since it doesn’t have any financial interest in either the property of the promissory note.

MERS Splits the note and the mortgage

A court case from 1872, Carpenter v. Longan , established that where the promissory note goes, a deed of trust or mortgage must follow and, according to the United State’s Uniform Commercial Code (UCC) , the promissory note must also have a clear chain of title.

Foreclosure proceedings during the Great Recession proved to be complicated by the MERS system. Within the MERS system, a note and mortgage may be transferred multiple times, so to avoid an endorsement each time, the note is “endorsed in blank.” In one foreclosure after the other, borrowers were able to demonstrate that the subsequent assignments of the promissory note had gone unendorsed.

Although the MERS systems has helped the mortgage industry, title agents, and even borrowers better manage and understand who has the servicing rights and holds the authority to foreclose, several borrowers facing foreclosure have argued that the system impermissibly “splits” the note and the mortgage between the note holder and MERS as the beneficiary of the deed of trust or mortgage.

This process of bifurcation, it’s claimed, causes the relationship between the mortgage and note to become defective and subsequently unenforceable.

Homeowners facing foreclosure, especially in the aftermath of the housing bubble burst of 2008, were successful in delaying or avoiding foreclosure by arguing that the authority to foreclose was not satisfactorily established due to breaks in the chain of assignments and endorsements.

However, Article 3 of the UCC establishes anyone who possesses the note has the legal authority to enforce it. So foreclosing parties have countered that possession of the note should be enough.

As a result, some states, like Michigan, have ruled in favor of these borrower’s arguments by requiring reunification through valid assignment before foreclosures may proceed. Others have ruled that reunification is not necessary since MERS would be authorized to foreclose for the note holder on their behalf. In 2015, The Nevada Supreme Court actually clarified previous rulings by stating that the involvement of MERS actually cures the defect. This is because the note holder could potentially or theoretically direct or compel MERS to assign the deed of trust, resulting in reunifying the instruments.

Homebuyers should always ask questions

With the advent of eClosing solutions, eNotes, eVaults, and the MERS eRegistry , the real estate, title, and mortgage industry continues to build systems that improve the homebuying experience.

Despite all the advancements, homebuying can be a confusing and overwhelming process. It’s important to ask questions of the right real estate professionals. Hiring your own attorney to represent your interests in the real estate transaction is always a good idea.

While the pros and cons of MERS is debated, homeowners today will want to keep up with recommendations from the CFPB should they fall behind on their mortgage payments and reach out to their mortgage servicer as soon as possible.

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Amanda Farrell is a digital media strategist at PropLogix. She enjoys being a part of a team that gives peace of mind for consumers while making one of the biggest purchases of their lives. She lives in Sarasota with her bunny, Buster, and enjoys painting, playing guitar and mandolin, and yoga.

MERS & Mortgage Securitization

Mers & The Debt MERS does record the assignment in the actual real property records system. The actual note itself, is the creation of the legal obligation to have the loan/note repaid for the debt. Thus the note is the actual legal document which backs the debt. The debt itself has not been transferred or negotiated by MERS

• MERS does record the assignment in the actual real property records system. The actual note itself, is the creation of the legal obligation to have the loan/note repaid for the debt. Thus the note is the actual legal document which backs the debt. The debt itself has not been transferred or negotiated by MERS

• MERS is not legally entitled to receive monthly payments from the borrower. MERS cannot legally be entitled to benefit from a foreclosure in any sale of the home in a foreclosure sale.

• MERS does not own the mortgage note, thus it cannot attempt to foreclose.

• MERS cannot have any legal claim or interest in the loan interest, the debt, security instrument which MERS serves as a nominee.

MERS and Securitization of Residential Mortgage Loans

Mortgage Electronic Registration System (MERS) has been named the beneficiary for this loan. MERS was created to reduce in need of executing and recording of assignment of mortgages, with the idea that MERS would be the mortgagee of record. This would allow “MERS” to foreclose on the property, and at the same time, it would assist the lenders in avoiding the recording of the Assignments of Beneficiary on loans sold. This helped to save money for the lenders in manpower and helped to reduce the costs of recording these notes. It was also designed to “shield” investors from liability as a result of lender misconduct regarding the process of mortgage lending. MERS is imposed to overcome certain laws and other legal requirements dealing with mortgage loans holding an “artificial” entity. Because of designating certain member employees to be MERS corporate officers, the foreclosing agency and MERS “designated officer” has a conflict of interest. MERS and the servicer both have not a beneficial interest in the note even they don’t receive the income from the payments. And actually the service employee can’t sign the Assignment in the name of MERS because the Assignment execution of MERS employee is illegal. The new party has not executed the Assignment from the actual owner of the note. An assignment will result in a nullity because of a mortgage in the absences of the assignment and physical delivery of the note. It must also bear in mind that the lender or other holder of the note registers the loan on MERS. Thereafter, all sales or assignments of the mortgage loan are accomplished electronically under the MERS system. MERS never acquires actual physical possession of the mortgage note, nor do they acquire any beneficial interest in the Note. From the beginning MERS has indicated numerous violations of Unfair and Deceptive Acts and Practices because of conflicting nature and identity of the servicer and the beneficiary. As these practices were intentionally designed, it misleads the borrower and benefits the lenders. So the main point becomes, is MERS the Servicer or the foreclosing party? As the Servicer is the party who initiate the foreclosure and they take the documents to their own employee who are designated as a “Corporate Officer of MERS”, and who conveniently signs the document for MERS, aren’t they the “foreclosing party”?

Is MERS the Beneficial Owner of the Note? 1. MERS is named after the beneficiary on the Deed of Trust and holding only legal title to the interest granted by Borrower in this Security Instrument…has the right: to exercise any or all of those interest, including, but not limited to, releasing and canceling this security instrument. 2. MERS can claim to hold the Note but it has not any actual possession of the Note 3. MERS don’t get any payments or income from the monthly payments. Ultimate Investor gets this money. The Investor has the beneficial interest in the Note because the Investor receiving the payments. 4. MERS agreement indicates that MERS will comply with the instructions of the holder of mortgage loan promissory notes at all time. It also indicates that “When the beneficial owner will not give contrary instructions , MER may depends on instructions from the servicer shown on the MERS system in accordance with these rules and the procedures with respect to transfers of beneficial ownership. 5. MERS is not the beneficial owner of the note that has been testified in Florida Courts. Assignment of Beneficiary MERS does not keep the record of the assignment of beneficiary though it is required by law, until the foreclosure process starts and the Notice of Default has been filed, and apparently, only when it appears that the borrower will not be able to reinstate the loan and then foreclosure is inevitable. It maintains itself as the beneficiary throughout the entire process up to foreclosure. MERS has represented in Florida Courts that its sole purpose is as a system to track mortgages. It has stated that the lenders and servicers do entry for themselves and it does not do the entries itself, but. When an Assignment of Beneficiary is executed, it is the member servicer or lender that goes to the website, downloads the necessary forms, completes the forms and then takes it to the designated “MERS officer” to sign. MERS agreements state that MERS and the Member agree that: (i) the MERS System is not a vehicle for creating or transferring beneficial interest in mortgage loans, (ii) transfer of servicing interests reflecting on MERS System are subject to the consent of the beneficial owner. Since MERS and the servicer both haven’t a beneficial interest in the note, they don’t receive the income from the payments, and since it is actually an employee of the servicer signing the Assignment in the name of MERS, this begs the question: Is the assignment executed by the MERS employee even legal, since the actual owner of the note has not executed the assignment to the new party? A good indicator might be in Sobel v Mutual Development, Inc, 313 So 2d 77 (1st DCA Fla 1975). An assignment of a mortgage in the absence of the assignment and physical delivery of the note in question is a nullity.

Possession of the Note & Holder in Due Course Coming to the forefront, possession of the Note is a key argument. The foreclosing entity has to prove possession and ownership of the original Note in order to foreclose. A survey reported that upwards of 40% of the Notes are missing and cannot be found that’s why this comes to the forefront. And MERS is once again involved in this. MERS foreclosure lawsuits often include a Lost, Missing, or Destroyed Affidavit In Judicial Foreclosure states. The Note cannot be found, and that the Note prior to being lost was in the possession of MERS which was “testified” by this affidavit. This has become very problematic for MERS,As they have admitted in Courts that they do not own the Note or even hold the Note. If this is so, then MERS is likely filing fraudulent Affidavits. When challenged, one defense that MERS uses to support its “legal standing” is that the servicer has possession of the Note and Deed. MERS, by the act of having its own “Officers” as employees of the servicer, entitles it to foreclose on behalf of the servicer and the beneficiary. When confronted with this defense, the response should be for the servicer to produce the note. It should also be noted that the lender or other holder of the note registers the loan on MERS. Then, under the MERS system all sales or assignments of the mortgage loan are accomplished electronically. MERS never acquires actual physical possession of the mortgage note, and they don’t acquire any beneficial interest in the Note. Securitization Process Securitization is the name for the process by which the final investor for the loan ended up with the loan. It entailed the following: 1. Mortgage broker had client who needed a loan and delivered the loan package to the lender. 2. The lender approved the loan and funded it. This was usually through “warehouse” lines of credit. The lender most of the times used warehouse line instead using their own money and that had been advanced to the lender by major Wall Street firms like J.P. Morgan. 3. The lender “sold” the loan to the Wall Street lender, earning from 2.5 – 8 points per loan. This entity is known also as the mortgage aggregator. 4. The loan, and thousands like it, are sold together to an investment banker. 5. Securities banker buys loans from Investment banker 6. Securities banker sells the loans to the final investors, as a Securitized Instrument, where a Trustee is named for the investors, and the Trustee will administer all bookkeeping and disbursement of funds. 7. The issue with the securitization process is that when the Securitized Instrument was sold, it was split apart and sold in tranches, (in slices like a pie). There were few or no records kept of which notes went into which trancheand there are no records of how many investors bought into each particular tranche. Additionally, there were no

Assignments designed or signed in anticipation of establishing legal standing to foreclose. 8. Rating Agencies rated the tranches at the request of the Investment Bankers who paid the Rating Agencies. 9. When the tranches were created, each “slice” was given a rating, “AAA, AA, A, BBB, BB, etc. which tranche got “paid” first out of the monthly proceeds determined the ratings. If significant numbers of loans missed payments, or went into default, then the AAA tranche would receive all money due, and this went on down the line. The bottom tranches with the most risk would receive the leftover money. These were the first tranches to fail. Even if the defaulting loans were in the AAA tranche, the AAA tranche would still be paid and the lowest tranche would not. Wall Street, after the 2000 Dot.com crash, had large amounts of money sitting on the sidelines, looking for new investment opportunities. Returns on Investments were dismal, and investors were looking for new opportunities. Wall Street recognized that creating Special Investment Vehicles offered a new investment tool that could generate large commissions. Other Pertinent Facts of Securitization 1. In Wall Street pooling agreements they defined in the agreements that the loans that they would accept for each investment vehicle. The lenders were executed agreements by them, with the lenders and then immediately issued warehouse lines of credit to the lenders. 2. Lenders then informed brokers to know the loan parameters to meet the pooling agreement guidelines and the brokers went out and found the borrowers. 3. Wall Street took all the loans, packaged them up and sold them as bonds and other security instruments to other investors, i.e. Joe’s Pension, and paid off original investors or reissued new line of credit, and earned commissions on both ends. 4. The process was repeated time and again. 5. What we do know now is that in most cases, the reality is that the reported lender on the Deed of Trust was NOT the actual lender. The actual lender who lent the money was the Wall Street Investment Bank. They simply rented the license of the lender, so that they would not run afoul of banking regulations and/or avoid liability and tax issues. For all purposes, Wall Street was the true lender and there are arguments that suggest that Disclosures should have been required naming Wall Street as the lender. Now it can be easier to understand how possession of the Note and ownership of the Note play a vital role. In most cases, which tranche will contain any particular note, it is unknown. And will not it be known how many investors, and who bought the individual tranches without significant and time-consuming investigation. Hence, any foreclosure that was securitized may be completely unlawful. Without the “True Owners” of the note stepping forward to demand foreclosure,

Assignee Liability Assignee liability is another issue being contested. Under TILA and RESPA, If on the face of the loan documents gives evident that there are violations of the statutes, then assignees have a significant liability when they assume the loan. Moreover, the question arises as to if assignee liability can be claimed only if there are no violations on the face of the documents. It is believed that MERS became the “beneficiary” for so many notes to address the Assignee Liability problem. Since MERS works as the beneficiary, and it doesn’t keep the record of assignments, it becomes more difficult to determine assignee liability and holder in due course issues. This could offer “cover” for all the parties who are participating in the Securitization process, since no there were recorded of Assignments and “proof of ownership” of the note could not be easily determined. Tracking the monthly payments made to the investors, determining which party received the monthly payment will be the only way to determined ownership of the Notes. This would be time consuming and likely only Discovery would prove the process necessary to get this information. In Cazares v Pacific Shore Funding, CD. Cal. Jan 3, 2006, assignee that actively participated in original lender’s act and dictated loan terms may be liable under UDAP. The question then arises as to assignments further down the “chain of title”. Under these circumstances, to attack the lenders, the UDAP codes can be utilized. The contracts can be “voided or rescinded for showing fraud and other causes of action, ” common law and UDAP codes, especially CA B&P § 17200, and CA Civil Code §1689, which allows for contract rescission.

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Why were so many metro stations in Moscow renamed?

Okhotny Ryad station in Soviet times and today.

Okhotny Ryad station in Soviet times and today.

The Moscow metro system has 275 stations, and 28 of them have been renamed at some point or other—and several times in some cases. Most of these are the oldest stations, which opened in 1935.

The politics of place names

The first station to change its name was Ulitsa Kominterna (Comintern Street). The Comintern was an international communist organization that ceased to exist in 1943, and after the war Moscow authorities decided to call the street named after it something else. In 1946, the station was renamed Kalininskaya. Then for several days in 1990, the station was called Vozdvizhenka, before eventually settling on Aleksandrovsky Sad, which is what it is called today.

The banner on the entraince reads:

The banner on the entraince reads: "Kalininskaya station." Now it's Alexandrovsky Sad.

Until 1957, Kropotkinskaya station was called Dvorets Sovetov ( Palace of Soviets ). There were plans to build a monumental Stalinist high-rise on the site of the nearby Cathedral of Christ the Saviour , which had been demolished. However, the project never got off the ground, and after Stalin's death the station was named after Kropotkinskaya Street, which passes above it.

Dvorets Sovetov station, 1935. Letters on the entrance:

Dvorets Sovetov station, 1935. Letters on the entrance: "Metro after Kaganovich."

Of course, politics was the main reason for changing station names. Initially, the Moscow Metro itself was named after Lazar Kaganovich, Joseph Stalin’s right-hand man. Kaganovich supervised the construction of the first metro line and was in charge of drawing up a master plan for reconstructing Moscow as the "capital of the proletariat."

In 1955, under Nikita Khrushchev's rule and during the denunciation of Stalin's personality cult, the Moscow Metro was named in honor of Vladimir Lenin.

Kropotkinskaya station, our days. Letters on the entrance:

Kropotkinskaya station, our days. Letters on the entrance: "Metropolitan after Lenin."

New Metro stations that have been opened since the collapse of the Soviet Union simply say "Moscow Metro," although the metro's affiliation with Vladimir Lenin has never officially been dropped.

Zyablikovo station. On the entrance, there are no more signs that the metro is named after Lenin.

Zyablikovo station. On the entrance, there are no more signs that the metro is named after Lenin.

Stations that bore the names of Stalin's associates were also renamed under Khrushchev. Additionally, some stations were named after a neighborhood or street and if these underwent name changes, the stations themselves had to be renamed as well.

Until 1961 the Moscow Metro had a Stalinskaya station that was adorned by a five-meter statue of the supreme leader. It is now called Semyonovskaya station.

Left: Stalinskaya station. Right: Now it's Semyonovskaya.

Left: Stalinskaya station. Right: Now it's Semyonovskaya.

The biggest wholesale renaming of stations took place in 1990, when Moscow’s government decided to get rid of Soviet names. Overnight, 11 metro stations named after revolutionaries were given new names. Shcherbakovskaya became Alekseyevskaya, Gorkovskaya became Tverskaya, Ploshchad Nogina became Kitay-Gorod and Kirovskaya turned into Chistye Prudy. This seriously confused passengers, to put it mildly, and some older Muscovites still call Lubyanka station Dzerzhinskaya for old times' sake.

At the same time, certain stations have held onto their Soviet names. Marksistskaya and Kropotkinskaya, for instance, although there were plans to rename them too at one point.

"I still sometimes mix up Teatralnaya and Tverskaya stations,” one Moscow resident recalls .

 “Both have been renamed and both start with a ‘T.’ Vykhino still grates on the ear and, when in 1991 on the last day of my final year at school, we went to Kitay-Gorod to go on the river cruise boats, my classmates couldn’t believe that a station with that name existed."

The city government submitted a station name change for public discussion for the first time in 2015. The station in question was Voykovskaya, whose name derives from the revolutionary figure Pyotr Voykov. In the end, city residents voted against the name change, evidently not out of any affection for Voykov personally, but mainly because that was the name they were used to.

What stations changed their name most frequently?

Some stations have changed names three times. Apart from the above-mentioned Aleksandrovsky Sad (Ulitsa Kominterna->Kalininskaya->Vozdvizhenka->Aleksandrovsky Sad), a similar fate befell Partizanskaya station in the east of Moscow. Opened in 1944, it initially bore the ridiculously long name Izmaylovsky PKiO im. Stalina (Izmaylovsky Park of Culture and Rest Named After Stalin). In 1947, the station was renamed and simplified for convenience to Izmaylovskaya. Then in 1963 it was renamed yet again—this time to Izmaylovsky Park, having "donated" its previous name to the next station on the line. And in 2005 it was rechristened Partizanskaya to mark the 60th anniversary of victory in World War II. 

Partizanskaya metro station, nowadays.

Partizanskaya metro station, nowadays.

Another interesting story involves Alekseyevskaya metro station. This name was originally proposed for the station, which opened in 1958, since a village with this name had been located here. It was then decided to call the station Shcherbakovskaya in honor of Aleksandr Shcherbakov, a politician who had been an associate of Stalin. Nikita Khrushchev had strained relations with Shcherbakov, however, and when he got word of it literally a few days before the station opening the builders had to hastily change all the signs. It ended up with the concise and politically correct name of Mir (Peace).

The name Shcherbakovskaya was restored in 1966 after Khrushchev's fall from power. It then became Alekseyevskaya in 1990.

Alekseyevskaya metro station.

Alekseyevskaya metro station.

But the station that holds the record for the most name changes is Okhotny Ryad, which opened in 1935 on the site of a cluster of market shops. When the metro system was renamed in honor of Lenin in 1955, this station was renamed after Kaganovich by way of compensation. The name lasted just two years though because in 1957 Kaganovich fell out of favor with Khrushchev, and the previous name was returned. But in 1961 it was rechristened yet again, this time in honor of Prospekt Marksa, which had just been built nearby.

Okhotny Ryad station in 1954 and Prospekt Marksa in 1986.

Okhotny Ryad station in 1954 and Prospekt Marksa in 1986.

In 1990, two historical street names—Teatralny Proyezd and Mokhovaya Street—were revived to replace Prospekt Marksa, and the station once again became Okhotny Ryad.

Okhotny Ryad in 2020.

Okhotny Ryad in 2020.

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COMMENTS

  1. PDF Sample Assignment from MERS

    MERS is only assigning its interest in the security instrument. Language indicating MERS is assigning the promissory note is prohibited. See the Procedures for the proper ways to identify MERS.

  2. B8-7-01, Mortgage Electronic Registration Systems (MERS), Inc. (12/13/2023)

    The MERS system is an electronic system that assists in the tracking of loans, servicing rights, and security interests. To initiate the electronic tracking, the seller/servicer assigns a special MERS Mortgage Identification Number (MIN) to the loan and registers it in MERS. This topic contains information about MERS, including:

  3. PDF ASSIGNMENT FROM MERS CHECKLIST

    ASSIGNMENT FROM MERS CHECKLIST Member Name: Org ID: MERSCORP Holdings Integrator: In what state(s) will this assignment be used? Assessment of compliance with the MERS® System requirements: *If assignment is for use in Indiana, Pennsylvania, New York or Mississippi, replace number 3 with:

  4. Understanding the Assignment of Mortgages: What You Need To Know

    Updated November 26, 2021 Table of Contents Assignment of Mortgage - The Basics Home Loan Documents Using MERS To Track Transfers Assignment of Mortgage Requirements and Effects Notice Requirements Mortgage Terms Taxes and Insurance Let's Summarize…

  5. What Is MERS For Mortgages?

    This assignment is a document that indicates the mortgage has been transferred to a new owner. This can be a labor-intensive process, requiring the owners of a loan to create an assignment with the county recorder every time a loan is sold. The mortgage banking industry created MERS to simplify this process.

  6. After Recording Return To:

    Any Member who executes and records (or causes to be recorded) an assignment of Mortgage or Security Instrument to MERS as Nominee intends to appoint MERS as its agent to execute and record such documents and instruments as it may deem necessary or proper pursuant to the agency granted herein.

  7. What Is Mortgage Electronic Registration System, Inc.?

    What Is MERS? MERS registers and tracks assignments of mortgages and servicing rights, avoiding the costs of having to record each loan transfer. By Amy Loftsgordon, Attorney (University of Denver Sturm College of Law)

  8. PDF MERS® System Rules of Membership

    Assignment of Rights. The MERS Entities and each Member may not assign or transfer their respective rights or obligations under the Governing Documents to a non-Member unless expressly authorized in the Governing Documents.

  9. What Is the Mortgage Electronic Registration System (MERS)?

    The Mortgage Electronic Registration System (MERS) is a database created by the mortgage banking industry. A confidential electronic registry of mortgages originated in the United States, it...

  10. Mortgage Electronic Registration Systems (MERS)

    An assignment naming MERS as the assignee of record is prepared and recorded with the county recorder's office. MERS will be the assignee of record for the life of the loan and the chain of title should end with MERS unless the rights are assigned to a non-MERS member, a foreclosure, etc.

  11. The Legally Invalid Assignment Defense to Foreclosure

    MERS may be a nominee for the lender, or it may receive the mortgage as an assignment. If MERS is the current assignee, it cannot pursue a foreclosure because it does not have an interest in the promissory note. MERS simply serves as an agent for the current owner of the mortgage and assists in creating a record for transfers of the mortgage.

  12. MERS

    The MERS ® eRegistry is the mortgage industry's "system of record" for holders of eNotes. Its role is to indicate who holds the authoritative copy of the eNote, resulting in a seamless process for you, your borrowers, and your trading partners. ... Reduce the costs associated with transferring mortgage rights by erasing the need for certain ...

  13. MERS's "Maine" Purpose: Recognizing Key Differences Between MERS Mortgages

    Maine's Supreme Court recently confirmed that the original lender can ratify a prior MERS assignment to give it the same effect as if the original lender assigned its interests in the mortgage rather than MERS. U.S. Bank N.A. v. Gordon, 2020 Me. 33, ¶ 10.

  14. Promissory Notes, Mortgage Assignments, and MERS' Role in ...

    A Mortgage Assignment is a document showing a mortgage loan has been transferred from the originator to a third party. Note Endorsements In addition to the assignment, the originator of the loan or the most recent holder of the loan must endorse (or sign over) the promissory note whenever the loan changes hands.

  15. Document Updates: Assignment of Mortgage From MERS ...

    Our generic "From MERS" Assignments are being updated to match the above MERS guidelines. These changes will be in effect on December 12, 2019. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584. DR's 305237 & 305238

  16. What Is MERS?

    MERS is an acronym for "Mortgage Electronic Registration Systems, Inc." MERS is a clearinghouse that the lending industry created to register and track assignments of mortgages and servicing rights and avoid the costs associated with having to record each transfer of a mortgage loan.

  17. MERS and Mortgage Securitization

    MERS does record the assignment in the actual real property records system. The actual note itself, is the creation of the legal obligation to have the loan/note repaid for the debt. Thus the note is the actual legal document which backs the debt. The debt itself has not been transferred or negotiated by MERS

  18. MERS® ServicerID

    For more information about Mortgage Electronic Registration Systems, Inc. (MERS) please go to www.mersinc.org. Homeowners: Visit Information for Homeowners for information about the duties and responsibilities of your mortgage company and a link to Hope Now, which provides support and guidance for homeowners in distress.

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    Видео, аудио, фото: Московское метро в 2015 году.

  20. Why were so many metro stations in Moscow renamed?

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