Any financial institution that is a member of the Mortgage Electronic Registration System, Inc. (MERS) and is named as the servicer for an active mortgage identification number (MIN) has to meet certain quality assurance requirements.
The purpose of the reconciliation is to ensure the data on the MERS system matches the institution’s data. This requirement can sometimes be overlooked if an institution is registering mortgages through MERS for secondary market loans and not servicing the loans, but have had to buy-back a loan. You would then be servicing a mortgage with a MIN and would need to meet the reconciliation requirements. Depending on the type of MERS membership, an institution may need to complete an annual report and quality assurance plan, as well as the data reconciliations.
To achieve compliance with MERS quality assurance standards, data reconciliation and annual reporting requirements, institutions should review their membership agreement with MERS and determine if any MIN-registered mortgages are being serviced by your institution, which would require data reconciliations.
Please contact your Eide Bailly Professional if you have questions regarding MERS requirements and compliance.
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