For newly originated mortgage loans that the lender elects to be registered with the Mortgage Electronic Registration System, Inc. (MERS), Fannie Mae requires lenders to modify the standard security instruments to name MERS as the nominee for the mortgagee. As a result of recent judicial decisions regarding MERS and its role as the nominee for the mortgagee, Fannie Mae is requiring the use of a Mortgage Electronic Registration Systems, Inc. Rider (MERS Rider) (Form 3158) to modify the standard security instruments in the states of Montana, Oregon and Washington. The MERS Rider must be used in these three states for newly originated mortgage loans that will be registered with MERS. Consequently, post-closing assignments into MERS are prohibited in these states. Lenders must also make changes to the standard security instruments for these three states as detailed in the Instructions to the MERS Rider. The new rider and instructions are available on the Single-Family Riders & Addenda page of Fannie Mae’s website.
Updated Selling Guide Topics
§ B8-7-01, Mortgage Electronic Registration Systems (MERS) (Naming MERS as the Nominee for the Beneficiary in the Security Instrument, and Use of MERS Rider in Specified Geographic Areas)
Effective Date
Lenders may begin using the new MERS Rider immediately in the three specified states and must begin using it for mortgage loans with notes dated on or after October 15, 2014.
I cannot believe that our lazy, corrupt and pathetic government sits by while the populace keeps getting hosed!?!
When is the screwed populace going to go after these corrupt individuals with pitchforks? WHEN???