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To eliminate the need for assignments and to realize the greatest savings, lenders should close loans using standard security instruments containing language approved by Fannie Mae and Freddie Mac which name MERS as Original Mortgagee (MOM). Sample documents are available here.
Benefits of MOM Loans:
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- Faster execution
- Reduction of shipping time and expenses
- Elimination of documentation errors
- Simplification of loan closing process
- Money savings
- Assignments eliminated forever ($30 saved per loan)
- No correction costs (up to $30 saved per document)
- No tracking costs
- No correspondent or broker document penalties
- One deed of trust or mortgage form for all transactions
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MOM Makes It Work |
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The following revised MOM language must be used on the revised security instrument. After July 2000, only the revised security instrument may be used. Please see Fannie/Freddie Bulletins for further details. (April 26, 1999)
"MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS.
Note: This is representative language only. Consult official Fannie Mae and Freddie Mac Announcements for specific language for your state. Other changes also may be required in the body of the Deed of Trust or Mortgage.
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| MERS as Original Mortgagee (MOM) means: |
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- Millions in savings for mortgage lenders!
- Eliminating the cost and aggravation of mortgage assignments forever!
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MOM Makes It Work |
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April 26, 1999
The following revised MOM language must be used on the revised security instrument. After July 2000, only the revised security instrument may be used. Please see Fannie/Freddie Bulletins for further details. |
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** "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS.
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| Two Ways To Save |
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MERS AS NOMINEE (MOM)
To eliminate the need for all assignments and to realize the greatest savings, lenders should close loans using standard security instruments containing language approved by Fannie Mae and Freddie Mac which name MERS as Original Mortgagee (MOM). Sample documents are available from MERS as well as many document vendors.
MERS AS ASSIGNEE
Lenders may also assign loans into MERS if the loan has already been closed in the lender's name. Once the loan is assigned to MERS using the same paper assignment process as you use now, tracking servicing and beneficial rights can occur electronically for all future transfers. The need for any additional assignments after this point will be eliminated unless the servicing rights are sold to a non-MERS member.
Click for Sample Assignment to MERS |
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Whenever possible, all loans should be closed utilizing security instruments naming MERS as Mortgagee and Nominee for the lender to realize the maximum cost savings. If any wholesaler or investor should require that the loan be delivered in a name other than MERS, the Certifying Officer on your staff would simply prepare a paper assignment from MERS to them. In this manner, the overwhelming majority of your production should not require assignments. |
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