Mers Form Law

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Procedures

Release 1.0
April 2, 2010
Contents
Introduction 1
Purpose ................................................................................................................... 1
Structure .................................................................................................................. 1

Membership in MERS® FraudALERT 2
Overview .................................................................................................................. 2
Requirements .......................................................................................................... 2
Business Procedure – Current MERS Member .................................................... 2
Business Procedure – New MERS Member .......................................................... 3

System Security 4
Overview .................................................................................................................. 4
Requirements .......................................................................................................... 4
Business Procedure—MERS ................................................................................. 4
Business Procedure—Member .............................................................................. 5
Business Procedure—When Using Third Party Service Providers .................... 5

Loan Data Submission 6
Overview .................................................................................................................. 6
Requirements .......................................................................................................... 6
Business Procedure – Submit Loan Data ............................................................. 6
Business Procedure – View Loan Data ................................................................. 7

Incident Reports 8
Overview .................................................................................................................. 8
Requirements .......................................................................................................... 8
Business Procedure – Create Incident Report ................................................... 10
Business Procedure – View Incident Report ...................................................... 11
Business Procedure – Edit Incident Report ....................................................... 12
Business Procedure – Disputed Incident Report ............................................... 12

Notifications 13
Overview ................................................................................................................ 13
Requirements ........................................................................................................ 13
Business Procedures ........................................................................................... 13

Contents  i
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MERS FraudALERT Procedures – Release 1.0–4/2/10
Reporting 14
Overview ................................................................................................................ 14
Business Procedure – Retrieving Reports ......................................................... 14

MERS® FraudALERT Help Desk 15
Overview ................................................................................................................ 15
Business Procedure ............................................................................................. 15

Glossary 17

Contents  ii
®
MERS FraudALERT Procedures – Release 1.0–4/2/10
Introduction
Purpose
This manual serves as a general overview of how business
processes in mortgage banking are affected by MERS®
FraudALERT. Use this manual in conjunction with other sources
of instruction and guidelines, including, but not limited to the
following:
 MERS® FraudALERT Online User Guide
Gives step-by-step instruction for using the online
component of MERS® FraudALERT
 MERS® FraudALERT Integration Handbook
Provides detailed information on your business and
technical integration with MERS® FraudALERT
These documents are available from the MERS website at
www.mersinc.org.

Structure
Each chapter contains three parts:
 Overview. The overview gives a brief description of the
process or function and how it relates to MERS.
 Requirements. This section states what information,
actions, and access are required to complete the business
process.
 Business Procedures. The business procedure gives a step-
by-step view of the process, including business-related
steps and general MERS® FraudALERT instruction.
The business procedure lists information that can be
entered into MERS® FraudALERT; however, the business
procedure does not specify which information is required.
Specific system instruction, including required fields, is
found in the MERS® FraudALERT Online User Guide.

Introduction  1
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MERS FraudALERT Procedures – Release 1.0–4/2/10
Membership in MERS® FraudALERT
Overview
MERS® FraudALERT is a platform for the sharing of information
to support the prevention and detection of mortgage fraud.
Information is shared through the filing of Incident Reports by
subscribers within MERS® FraudALERT based on either
confirmed fraud or suspicious activity.
Each member goes through an application and approval process,
which is outlined in the following pages, to become a member of
MERS® FraudALERT. To be a member of MERS® FraudALERT,
you must agree to abide by the MERS Governing Documents and
the MERS® FraudALERT addendum.

Requirements
Membership in MERS® FraudALERT requires an integration
process which includes security, system-to-system interface, and
business considerations. If you are already a MERS Member, these
requirements may already have been met during your original
MERS integration effort.
For more detailed information regarding technical requirements
and network connectivity, refer to the Integration Handbook.

Business Procedure – Current MERS
Member
1. Sign and submit the MERS® FraudALERT addendum to
the MERS Membership Agreement.
2. During integration, you will:
 Document your revised business process flows.
 Have access to the MERS® FraudALERT online
training region to learn how to view information in
MERS® FraudALERT.
 Complete the Customer Integration survey.

Membership in MERS® FraudALERT  2
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MERS FraudALERT Procedures – Release 1.0–4/2/10
Business Procedure – New MERS
Member
1. Submit a completed MERS Membership Application and
MERS® FraudALERT addendum to the MERS corporate
offices.
2. The MERS Membership Manager will work with you on
preliminary steps to get you ready for MERS integration.
Once these are done, the Membership Manager will
recommend your company for integration.
3. During integration, you will:
 Identify an implementation Project Manager.
 Form an integration team.
 Receive your Org ID.
 Notify technology vendors/Registrars of your intention
to become a MERS® FraudALERT member.
 Confirm the implementation date with MERS.
 Document your revised business process flows.
 Establish and test connectivity to the MERS® System.
 Have access to the MERS® FraudALERT online
training region to learn how to view information in
MERS® FraudALERT.
 Complete the Customer Integration survey.

Membership in MERS® FraudALERT  3
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MERS FraudALERT Procedures – Release 1.0–4/2/10
System Security
Overview
There are two levels of identity validation within the MERS®
FraudALERT online security scheme:
 User ID
 User Password
Your MERS® FraudALERT System Administrator is responsible
for establishing and maintaining the security that controls access to
the MERS® FraudALERT online component. Your System
Administrator establishes User IDs and Passwords, resets
passwords, reactivates User IDs, and deletes unused User IDs.
See the MERS® FraudALERT Quick Reference Guide for
instructions on setting up and maintaining User IDs.
As defined by a contractual agreement, your organization may
grant security access to a third party to process specific
transactions, e.g. MERS Members that are known as Registrars
may be authorized by you to perform transactions on your behalf.

Requirements
 Your organization must have one primary contact for system
security, called your Subscriber Administrator.
 Your organization must supply one email address for
notification alerts.

Business Procedure—MERS
1. The MERS® FraudALERT account set up team creates
your subscriber account in MERS® FraudALERT and
sets up your Subscriber Administrator.
2. The MERS® FraudALERT system sends an email
notification to your Subscriber Administrator
containing login information.
3. MERS® FraudALERT sends an email notification to
each user to activate their account.

System Security  4
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MERS FraudALERT Procedures – Release 1.0–4/2/10
Business Procedure—Member
1. Your MERS Project Manager identifies a Subscriber
Administrator.
2. After your company is set up and activated on MERS®
FraudALERT, your Subscriber Administrator sets up users,
branches and delegated agents.
3. Your Subscriber Administrator assigns each user within
your organization a unique User ID on MERS®
FraudALERT and appropriate system access.
4. Each user clicks on the link in the activation email they
receive from MERS® FraudALERT to set up their
password and security questions.
5. Your Subscriber Administrator resets passwords,
deactivates User IDs and deletes User IDs no longer
needed.
6. Your Subscriber Administrator is responsible for notifying
MERS if your MERS® FraudALERT contact information
or notification email address change.
If the email address to which email notifications for your
organization should be sent changes, you must notify MERS
immediately.

Business Procedure—When Using
Third Party Service Providers
Your organization may grant security access to third parties to
process loan data submissions and reports on your behalf.
Your MERS System Administrator sets up this security through
the Member Information Relationships section of MERS® OnLine
by adding Vendor relationships.

System Security  5
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MERS FraudALERT Procedures – Release 1.0–4/2/10
Loan Data Submission
Overview
Loan Data Submission is the process for entering extended
information on MERS® FraudALERT for a loan registered on the
MERS® System.
A Loan Data Submission may be made for any loan registered on
the MERS® System, regardless of its status, including:
 Loans in a pre-closing status
 Loans in an active status
 Loans in a deactivated status

Requirements
 Each Loan Data Submission must be associated with a MIN
registered on the MERS® System.
 Loan Data Submissions may be made via Web Service or batch
interface.

Business Procedure – Submit Loan
Data
1. Each Loan Data Submission must be associated with a
MIN registered on the MERS® System.
2. Enter the extended loan information.
3. Submit the transaction.
4. MERS® FraudALERT validates the MIN is registered on
the MERS® System.
5. The loan is included in your Inventory Loan reports.

Loan Data Submission  6
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MERS FraudALERT Procedures – Release 1.0–4/2/10
Business Procedure – View Loan
Data
1. From the MERS® FraudALERT Dashboard page, click on
the Search tab
NOTE: You can also click on the MIN# hyperlink in a
Notification email.
2. Select Loan Data as the Search Type.
3. You may search for your loan by any combination of:
 MIN
 Loan Number
 Participant Types
 Loan Participant Name(s)
 Address Information
 Association to any Incident Report
4. To filter your search further, you can specify a Date Range.
5. Click the Search button.
6. A Search Results page will be displayed with all the MINs
for which extended loan data has been submitted that
matched your search criteria.
7. Click on any of the loans from the Search Results page to
view that loan.

Loan Data Submission  7
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MERS FraudALERT Procedures – Release 1.0–4/2/10
Incident Reports
Overview
MERS® FraudALERT is a platform for the sharing of information
to support the prevention and detection of mortgage fraud.
Information is shared through the filing of Incident Reports by
subscribers within MERS® FraudALERT based on either
confirmed fraud or suspicious activity. The following definitions
and guidance are intended to provide a common framework within
which subscribers will report incidents.

Reporting Guidance for Confirmed Fraud:
Whenever a reporting entity (i.e., originator, servicer, investor, title
agent, appraiser) becomes aware through public notice or internal
investigation of confirmed fraud.

Reporting Guidance for Suspicious Activity:
Whenever a reporting entity (i.e., originator, servicer, investor, title
agent, appraiser) becomes aware through public notice or internal
investigation of suspicious activity, they are required to test their
observation, evidence and analysis according to the following
requirements prior to submitting an incident report.

Requirements
For Suspicious Activity:
Reported occurrences of suspicious activity must, at a minimum,
conform to all of the following requirements:
1. The reporting entity must have a factual basis, based on its
good-faith judgment, to believe that the information
concerning the reported occurrence or action is true and
accurate.
2. Evidence or information held by the reporting entity must
meet all four (4) of the requirements described below:
 Credible evidence
 From a reliable source*
 Relating to document, information, or
occurrence discrepancies
 Indicating intentional deception or
misrepresentation

Incident Reports  8
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MERS FraudALERT Procedures – Release 1.0–4/2/10
* Reliable Source - A source with knowledge and/or
experience about a document, information, or occurrence,
who can assess its reliability, accuracy, or authenticity, or
lack thereof. This includes public records documenting a
confirmed fraud.
3. The loan transaction was not, or would not have been
approved, funded, or purchased if the misrepresentation or
deception had been known.

For Confirmed Fraud:
The incident report categorized as confirmed fraud must, at a
minimum, conform to all of the following requirements:
1. The reporting entity must have reference to a public record,
and/or confirmation or validation by a state or federal law
enforcement or regulatory agency with reference to a
specific, identifiable case number related to a case of
mortgage fraud.
2. Evidence or information held by the reporting entity must
meet all four (4) of the requirements described below:
 Credible evidence
 From a reliable source*
 Relating to document, information, or
occurrence discrepancies
 Indicating intentional deception or
misrepresentation
* Reliable Source - A source with knowledge and/or
experience about a document, information, or
occurrence, who can assess its reliability, accuracy, or
authenticity, or lack thereof. This includes public
records documenting a confirmed fraud.
3. The loan transaction was not, or would not have been
approved, funded, or purchased if the misrepresentation or
deception had been known.
The incident report being categorized as confirmed fraud must, at
a minimum, include the name of the state or federal law
enforcement or regulatory agency and the associated case number.

Incident Reports  9
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MERS FraudALERT Procedures – Release 1.0–4/2/10
Business Procedure – Create
Incident Report
1. From the MERS® FraudALERT Dashboard or Search page,
click on the Create Incident Report button.
2. Enter Incident Report details. Mandatory fields are
identified by a red asterisk.
3. Choose Confirmed Fraud or Suspicious Activity based
on the guidelines above.
4. If the Incident Report is deemed Confirmed Fraud,
additional data is required, including Law Enforcement
information.
5. Click on Submit Report button.
6. In case of any errors with submitting the Incident Report,
descriptive error messages will be displayed that will help
identify which data to correct.
7. The Incident Report will be displayed on a successful
submission with an Incident Report Identification Number
that is uniquely assigned to it.
8. The Incident will appear on your Inventory IR reports.

Incident Reports  10
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MERS FraudALERT Procedures – Release 1.0–4/2/10
Business Procedure – View Incident
Report
1. From the MERS® FraudALERT Dashboard page, click on
the Search tab
NOTE: You can also click on an Incident Report hyperlink
in a Notification email.
2. Select Incident Reports as the Search Type.
3. You may search for your Incident Report by any
combination of:
 Incident Report Identification Number
 Participant Type(s) involved in the incident
 Participant Name(s) involved in the incident
 Address Information
 Fraud Category Type
 Primary or Secondary Fraud Classification Type
 Association to a Loan
4. To filter your search further, you can specify a Date Range.
5. Click the Search button.
6. A Search Results page will be displayed with all the
Incident Reports that matched your search criteria.
7. Click on any Incident Report shown on the Search Results
page to view that Incident Report.

Incident Reports  11
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MERS FraudALERT Procedures – Release 1.0–4/2/10
Business Procedure – Edit Incident
Report
1. From any Incident Report page, click on the Edit Report
button.
2. Enter or update Incident Report details.
3. If you change an Incident Report from Suspicious Activity
to Confirmed Fraud, additional data is required, including
Law Enforcement information.
4. Click on Submit Report button.
5. In case of any errors with submitting the Incident Report,
descriptive error messages will be displayed that will help
identify which data to correct.
6. If the update is successful a success page will be displayed.

Business Procedure – Disputed
Incident Report
If a Party to an Incident wishes to dispute information contained in
the Incident Report they will need to call the MERS®
FraudALERT Help Desk at (800) 313-6751to start the dispute
process.
While the item is in dispute, a text alert will be displayed for that
Incident Report on MERS® FraudALERT to show that the
disputing participant’s involvement in the incident is in dispute.

Incident Reports  12
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MERS FraudALERT Procedures – Release 1.0–4/2/10
Notifications
Overview
Notification Alerts are emailed to your MERS® FraudALERT
contact when an Incident Report relates to a MIN in your
organization’s portfolio.
Loan rights holder and status changes tracked on the MERS®
System are carried over to MERS® FraudALERT, and historical
rights holders are stored, so that both past and present rights
holders can be notified about Incident Reports.

Requirements
If the email address to which email notifications for your
organization should be sent changes, you must notify MERS
immediately.

Business Procedures
Notification Alerts are sent twice each day, at 8AM and 8PM
Eastern Time.
MERS® FraudALERT will send a Notification Alert via email for
any matches found between a loan in your inventory and an
Incident Report. Matches may be on Names, Addresses, SSN’s,
Tax Identification Numbers or License Numbers of various
participants.
From the email, you may click on any Loan or Incident Report
hyperlink to view detailed information.

Notifications  13
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MERS FraudALERT Procedures – Release 1.0–4/2/10
Reporting
Overview
MERS® FraudALERT provides scheduled reports as well as
notifications. We suggest that you implement a procedure for
downloading your reports and storing them until they are no longer
needed.
Reports are provided in tab-delimited text files that can be
imported into software applications your company supports for
further manipulation.

Reports are available for download from the MERS®
FraudALERT online application, and can also be retrieved through
the File Transfer Protocol (FTP) process. Report files are placed in
the same Member directory used for MERS® System reports. See
the MERS® System Integration Handbook Volume II for detailed
instructions on downloading reports via FTP.

Business Procedure – Retrieving
Reports
To retrieve reports online:
1. Select the Reports tab from the MERS® FraudALERT
Dashboard page.
2. Select the particular report you want to view.
3. Select the day for which you want to view the report.
4. Download the report.
5. Review the report and reconcile with your internal systems.
6. Correct errors, warnings, and rejects.
7. Resolve and resubmit rejected transactions to MERS®
FraudALERT.
You can also use a system-to-system method to retrieve your
reports. See the MERS® Integration Handbook Volume II for
information on using other methods to retrieve report files.

Reporting  14
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MERS FraudALERT Procedures – Release 1.0–4/2/10
®
MERS FraudALERT Help Desk
Overview
The MERS® FraudALERT Help Desk serves as a point of contact
in support of the following:
* MERS® FraudALERT user questions
* Technical help with creating MERS® FraudALERT
transactions
Other highlights of the MERS® FraudALERT Help Desk are:
* Toll-free access to the Help Desk, 1-800-313-6751
9 a.m. to 9 p.m. eastern time, Monday through Friday.
* Off-hour technical support available for emergency technical
issues.
* Broadcast bulletins posted by email to your MERS®
FraudALERT email address, and online broadcast messages
posted on the Dashboard page.
* Real-time tracking system used for all open inquiries and
issues to ensure timely resolution.

Business Procedure
* MERS® FraudALERT Subscriber calls the MERS®
FraudALERT Help Desk at 1-800-313-6751.
* A Help Desk representative answers the call.
* A record is opened in the tracking system
* One of the following occurs:
* If the item is a general inquiry or training support issue and
does not impact additional users or processing, the Help
Desk representative resolves the problem or responds to the
Member’s request, updates the tracking record, and no
further action is necessary.
* If the Help Desk representative determines that further
action is required:
 The Help Desk representative coordinates the resolution
of the problem with the appropriate MERS area(s) and
monitors the progress.
 An interim status is provided to the Member at a
predetermined frequency based on the following
service levels.

MERS® FraudALERT Help Desk  15
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MERS FraudALERT Procedures – Release 1.0–4/2/10
Initiate Problem Resolution
Description Service Level

Severity 1—Significant Immediately
problem affecting
multiple users

Severity 2—Significant Within 2 hours
problem affecting a
single user

Severity 3—Problem Within 48 hours, except
has reasonable for scheduled holidays
circumvention; user can
continue processing
with minimal loss of
efficiency or
functionality

Severity 4—User Within 5 days
inquiry or problem that
does not affect the user

Description Service Level

Application Support— 4 hours
Severity 1

Application Support— 8 hours
Severity 2

Other problems— 48 hours
Severity 2

 The Help Desk representative confirms with the
MERS Member that resolution is acceptable.
 The Help Desk representative verifies that all action
taken has been documented and closes the record in
the tracking system.

MERS® FraudALERT Help Desk  16
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Glossary
Associated Member A MERS Member that has been granted inquiry only access to loan information by
the Servicer/Subservicer of a mortgage registered on MERS.
Assumption Taking over by one party of an obligation that was originally incurred by another.
In MERS® System, this results in replacement of the Primary Borrower and all
Co-Borrowers.
Batch File A system-to system transaction used to update the MERS® System.

Beneficial Rights A transfer of the security interest under the mortgage or deed of trust. These
transfers are tracked for MERS Members on the MERS® System.
Transfer
BIR Business Integration Resource. The MERS employee who assists you in
incorporating the MERS® System into your business processes.
Co-Borrower The first borrower listed on the Security Instrument is the Primary Borrower for
that loan on the MERS® System. Each additional borrower listed on the Security
Instrument is a Co-Borrower for that loan on the MERS® System. Names listed on
the Security Instrument but not the Note should be entered as Co-Borrowers on the
MERS® System. Names listed on the Note but not the Security Instrument should
not be entered on the MERS® System.
Confirmed Fraud The presence of a public record indicating a fraud conviction by a court of law,
and/or validation and confirmation of fraud by a state or federal law enforcement or
regulatory agency with reference to specific, identifiable case number related to a
case of mortgage fraud.
Deactivation When a loan becomes inactive on the MERS System for one of the following
reasons:
 Paid in Full (includes payoff, deed in lieu, short sale, etc.)
 Transfer to non-MERS Servicer
 Involuntary transfer/default by Servicer
 Involuntary transfer/default by Subservicer
 Foreclosure Complete
 Reinstated or modified (option 1), not assigned back to MERS
DTD Document Type Definition. A file that defines the “markup language” that will be
used to describe the data. It defines and names the elements that can be used in the
document, the order in which the elements can appear, the element attributes that
can be used, and other document features.
FIPS Code The code assigned by the Federal Information Processing Standards (FIPS)
Publications issued by the National Institute of Standards and Technology (NIST)
to represent a county or other entity treated as an equivalent legal and/or statistical
subdivision of the 50 states, District of Columbia, and the possessions and freely
associated areas of the United States.
Flat File Format This is the optional proprietary format for system-to-system input to the MERS®
System. Members that are not X12 capable can use this format.

Glossary  17
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Foreclosure Status The field reflecting the current status of a MIN in foreclosure on the MERS ®
System. “Foreclosure Complete” and “Reinstated or modified (option 1), not
assigned back to MERS” statuses deactivate the MIN. The following is a list of
MERS foreclosure statuses:
 Foreclosure pending (option 1), assigned to Servicer

 Foreclosure pending (option 2), retained on the MERS System
 Foreclosure pending (option 3), iRegistration
 Reinstated or modified (option 1), assigned back to MERS
 Reinstated or modified (option 1), not assigned back to MERS-deactivation
 Reinstated or modified (option 1), not assigned back to MERS- iRegistration
 Reinstated or modified (option 2)
 Reinstated or modified (option 3)
 Foreclosure complete
 Foreclosure status reset
FTP File Transfer Protocol

Funding Date Funding Date is defined as the date the borrower becomes obligated for the debt
and interest starts to accrue. In some states, this may be different from the date the
borrower signs the note, or the date the note is drawn.
Integration The process by which a Member completes procedural changes, training, and
system testing of transactions prior to being live in the MERS® System.
Investor The owner of the beneficial interest in a loan.

iRegistration Loan registered on the MERS® System for information only, where MERS is not
the mortgagee. iRegistration loans may be included in transactions (e.g. TOS,
TOB, deactivation, foreclosure), but assignment and recording information is
optional, and the Quality Review flag cannot be set to “Y.”
Lender The payee on the note.

Line of Business (LOB) The types of business in which a Member is active on the MERS® System. These
are listed in the Member’s Member Profile.
Loan Data Submission The process for entering extended information on MERS® FraudALERT for a loan
registered on the MERS® System.
Member Refers to all organizations whose signed MERS Membership Application has been
submitted and approved, and whose fees are current.
Member Profile MERS-specific information about a MERS Member that is required at the time of
initial setup. The member profile indicates the Member’s MERS business process
preferences, billing, and other information.
MERS MERSCORP, Inc., which owns and operates the MERS® System, the MERS®
eRegistry, and MERS® eDelivery; and Mortgage Electronic Registration Systems,
Inc., its wholly owned and bankruptcy remote subsidiary, which acts as the
mortgagee of record in the public land records and as nominee for the lender and its
successors and assigns.
MERS Help Desk Provides support of MERS systems and procedures, via telephone and email, to
MERS Members.
MERS® OnLine Browser-based access to the MERS System, found at www.mersonline.org.

MERS® System An electronic registry that tracks changes in loans servicing and beneficial
ownership rights. Member companies update the registry via MERS® OnLine (the
browser-based interface) or through batch file interfaces.
MIN Mortgage Identification Number. The MIN is an 18-digit number composed of the
7-digit Organization ID, the 10-digit sequence number, and the check digit.
MIN Status The field reflecting the reason for current status of a loan on the MERS® System.

Glossary  18
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Note Date Note Date is the date on the Note. In some states, the date the borrower signs the
note, or the date the note is drawn, may or may not be the actual date on which
interest begins to accrue (see Funding Date).
Option 1 (beneficial The lender/seller of the beneficial interest initiates the transfer of beneficial rights
outside of MERS (e.g., using MIDANET or MORNET). The Investor sends
rights) confirmation of the transfer to MERS through an X12 transaction. Once the X12
file is submitted, it cannot be canceled. Interim funding interests are released
automatically when the X12 transaction is processed by the MERS® System.
Organization A MERS assigned seven-digit number uniquely identifying a Member of MERS.
Identification Number The seven digits of the Org ID comprise the first seven digits of the 18-digit MIN.
(Org ID)
Originating Org ID The Org ID of the loan originator. This organization’s Org ID and Name are
displayed as Originating Organization.
Originating The originator of the loan. If the originator is a MERS Member, that Member’s
Org ID is entered in the Originating Org ID field, and its Org ID and Name are
Organization displayed for Originating Organization. If the originator is not a MERS Member,
the originator’s name is entered in the Original Note Holder field and displayed
for Originating Organization.
Parent/Child Relationship established by MERS on the MERS® System for Members who
execute a Parent/Child Agreement. Only the parent Org ID is billed Membership
Relationship fees, and transactions reflecting seasoned servicing transfers between the Org IDs
named in the relationship are billed as Intracompany Transfer rather than
Seasoned Servicing Transfer fees.
Pool Number The number assigned to a grouping of loans by the Investor; required for
securitization.
Pre-Closing Loan registered on the MERS® System before the note date with a status of Pre-
Closing (not active). May be registered as an active iRegistration, MOM, or Non-
MOM when the loan closes, but a Pre-Closing may not be updated or included in
any other transaction except Registration Reversal.
Primary Borrower The first borrower listed on the Security Instrument is the Primary Borrower for
that loan on the MERS® System. Each additional borrower listed on the Security
Instrument is a Co-Borrower for that loan on the MERS® System.
Registrar A company to whom a Member has contracted business activities such that the
Registrar would be the initiator of the business activity that triggers a transaction to
the MERS® System.
Registration The process of entering required information into the MERS System to report to
MERS that a loan exists with MERS as the Mortgagee, or to reflect an
iRegistration.
Reliable Source A source with knowledge and/or experience about a document, information, or
occurrence, who can assess its reliability, accuracy, or authenticity, or lack thereof.
This includes public records documenting a confirmed fraud.
Sequence Number The 10-digit number assigned by the MERS Member to uniquely identify a loan.
The 10 digits of the sequence number comprise the 8th through 17th digits of the 18-
digit MIN.
Servicer The entity that has the contractual right to service a loan and responsibility for the
servicing of the loan for the Investor. In some cases the Servicer contracts with a
Subservicer. If so, both the Servicer and the Subservicer must be MERS Members
to register the loans on the MERS System.
Servicing Rights The sale of servicing rights from the current Servicer to a new Servicer. These
transfers are tracked for MERS Members on the MERS® System.
Transfer

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Subservicer The entity with whom the Servicer has contracted to service its loans. The
Subservicer is not the legal owner of servicing rights.
Suspicious Activity An abnormal or unusual action or pattern of actions, or misstatement,
misrepresentation or concealment of a fact or facts by parties involved in real estate
finance transactions, creating concern of possible intentional deception for unlawful
financial gain.

System to System An alternative to using MERS ® OnLine, it’s a method of transmitting information
directly from a Member or vendor system to the MERS® System. This includes flat
files and EDI X12 transmissions.
TOB Transaction used to reflect a Transfer of Beneficial rights on the MERS ® System.
See Beneficial Rights Transfer.
TOS Transaction used to reflect a Transfer of Servicing rights on the MERS ® System.
See Servicing Rights Transfer.
Trustee One who holds title to real property under the terms of a deed of trust.

Update A change to information outside of a previously defined business process
(corrections, updates to previously null fields, etc.)
Vendor A MERS Member who performs various transactions on the MERS® System on
behalf of another Member under a contractual agreement.
Warehouse/Gestation Associated Member with an interim financial interest on a loan prior to the sale of
the loan to the permanent Investor. Their interest in each loan is released
Lender automatically when servicing is transferred. The Warehouse/Gestation Lender has
view only access to the loan on the MERS® System.
XML Extensible Markup Language. XML is a markup language designed specifically for
delivering information over the World Wide Web. In creating an XML document,
the user creates and assigns the element names.

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