Effective immediately, unless otherwise noted
Effective October 15, 2014
Due to recent legal developments, Mortgages in the States of Montana, Oregon and Washington where MERS is not the original mortgagee of record, but is a subsequent assignee, are not eligible for sale to Freddie Mac. Seller/Servicers should refer to Bulletin 2014-6 regarding the use of the MERS Rider (Form 3158) for Mortgages where MERS is the original mortgagee of record in the above States.
Updates and clarifications
We are updating the Glossary to include the term “MERS Governing Documents.” Seller/Servicers are reminded that in the event any requirements of the MERS Governing Documents conflict with the requirements of the Guide, the requirements stipulated within the Guide will prevail.
We are also announcing the following updates and clarifications for MERS-registered Mortgages:
Effective September 16, 2014, we are requiring Seller/Servicers, who sell and/or service Mortgages for which MERS is the mortgagee, to:
• Register the Mortgage(s) with MERS prior to loan delivery to Freddie Mac
• Update the MERS System to reflect a MERS-registered Mortgage status as “Paid in Full” within two Business Days after the Payoff Date
Effective immediately, we are clarifying that Seller/Servicers must:
• Reflect a Concurrent Transfer of Servicing on the MERS System
• Prepare and execute an assignment of the Security Instrument to themselves prior to initiating the first legal action in a foreclosure proceeding
• Prepare and execute an assignment of the Security Instrument to themselves prior to filing any bankruptcy proof of claim or motion for relief from stay and record the assignment where required by State law
For MERS-registered Mortgages, we are reminding Servicers of the need to:
• Reconcile Mortgage data in accordance with obligations set forth in the MERS Governing Documents
• Promptly notify Freddie Mac if their membership with MERS is terminated for any reason
• Comply with all MERS-registered Mortgage loan data reconciliation requirements set forth in the MERS Governing Documents
• Ensure that only their duly authorized officers or employees, as appointed by MERS pursuant to a MERS corporate resolution, are permitted to act as MERS signing officers
Freddie Mac may review a Servicer’s compliance with MERS requirements periodically.
Sections 4.14, MERS® Membership, 22.14, Assignment of Security Instrument, 53.15, MERS®, 66.17, Foreclosing in the Servicer’s Name, 67.7, Bankruptcy General Requirements, and 78.15, Payoff – Matured or Prepaid, and the Glossary have been updated to reflect the changes referenced above.
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