Optimal Mortgage Services |

The Impending MERS® Annual Report Deadline

This time of year always reminds me of the list that I made in January of things I needed to accomplish for 2014.  It was with great intention that the list was compiled, but time has a way of whisking by and we are once again faced with those goals we prioritized and slated for completion by year end.  As you look throughout your community; pumpkins, bales of hay and mums are arriving in storefronts and are displayed on the porches of your neighbors.  It brings the reminder that there are only a few months left before the year winds to an end.  Time is short, filled with holiday events and family time.  The remainder of the year will fly by faster than prior months.  Soon the pumpkins will be replaced by holiday lights, snow and the New Year’s Eve dropping of the ball.

One year end milestone on my list was the filing of the MERS® Annual Report.  Those members servicing loans will be required to file an Annual Report.  Those servicing more than 1,000 loans are required to have their compliance efforts validated by an independent third party.

  • Have I written internal company MERS® procedures?
  • How have I faired with my compliance efforts since the last filing of my Annual Report?
  • Have I chosen an independent third party vendor for this year’s Annual Report?
  • Did I reconcile monthly, each and every month this year?
  • Did I reconcile monthly, each and every month this year?
  • Have I complied with the requirement to ensure proper alignment of data between servicing and MERS®?
  • Have I audited the loan documents to ensure they are compliant?

 

Not incorporating MERS® compliance throughout the year can lead to year end panic.  It is much like the proverbial box of receipts in hand on April 15th and wondering, as the clock ticks, how to file that income tax return.  Incorporating a system into your daily and monthly routine leaves you better prepared for the pending deadline and gives you a higher comfort level and pride when actually executing and submitting the report.

It is not too late to prepare for the MERS® Annual Report.  The report exceptions list areas of needed improvement, but who wants to realize that the same exceptions you reported last year are repeated again this year?

The best avenue of attack is to find a vendor that suits your company needs and practices.  Your preferred vendor should be involved throughout the year and offer the services and guidance you need.  Your vendor’s involvement can help identify areas of weakness, provide reconciliation tools, review documents and provide assistance in navigating through the MERS® requirements and updates.

A focus on this task for the next 30 days can lead to an early submission of your Annual Report, prior to the December 31st deadline.  After all, it is important to allow yourself time to enjoy the end of year festivities and spend precious time with your family.  On January 1st, you can add “maintain established MERS® compliance processes” to your new-year goals.

 

NOW IS THE PERFECT TIME TO PREPARE FOR YOUR NEXT RECERTIFICATION

Given the rapid changes in the mortgage regulatory environment, up to date quality control measures that are in place and practice now will provide for a smooth annual recertification.  Brokers, third party originators, mini-correspondents, non-depository lenders and depository lenders are being held to higher standards every year.

Agency regulations in conjunction with additional depository and non-depository lender requirements are changing the investor landscape.  Due to the substantial increasing cost of compliance and risk of purchasing mortgage loans from various originating entities, investors are increasingly requiring the originating companies to perform the same compliance and quality control measures as they perform.


http://optimalqc.com/images/qualitycontrol.jpgA simple quality control plan for mortgage companies is no longer enough.  Quality control plans require constant updating and are an intricate and complex action plan for the compliance requirements for each loan type. 

Investor recertification requirements are becoming much more complex than just providing evidence of pre and post-closing review reports.  The requirements now include current financials, compensation agreements, deposit data reports (for depository lenders), LDP – GSA – OFAC checks, onsite visits, FDIC or NMLS information and/or other information that varies from one lender to another.

CFPB regulations that may apply to your company should be incorporated in your policies and procedures:

Regulation B – Equal Credit Opportunity Act

Regulation C – Home Mortgage Disclosure Act

Regulation G – S.A.F.E. Mortgage Licensing Act – Federal Registration

Regulation H – S.A.F.E. Mortgage Licensing Act – State Registration System

Regulation N – Mortgage Acts and Practices – Advertising

Regulation P – Privacy of Consumer Financial Information

Regulation V – Fair Credit Reporting Act

Regulation X – Real Estate Settlement Procedures Act

Regulation Z – Truth In Lending Act

Labor costs and resources to handle the full spectrum of mortgage compliance and annual recertification internally can easily be cost prohibitive.  Just the research to stay current with new regulations, incorporate them into your quality control plan and policies and procedures is very  labor intensive. 

 

Utilizing a highly qualified company that specializes in quality control is an excellent cost effective resource to handle some or all of these requirements that are tailored to your organization. 

 

NOW is the perfect time to prepare for your next recertification.


Mortgage Electronic Registration Systems, Inc. (“MERS”)

Judicial decisions were issued in Washington, Oregon, and Montana concerning the role of Mortgage Electronic Registration Systems, Inc. (“MERS”) as beneficiary on deeds of trust. As a result of these decisions, MERS should only be referenced as the nominee for the Lender on the deed of trust, or in subsequent documents appearing in the chain of title in these states.

Fannie Mae and Freddie Mac have announced the publication of the Mortgage Electronic Registration Systems, Inc. Rider (“MERS Rider”) (Form 3158)to modify the standard security instruments used in these states. The MERS Rider may be used immediately.  Post-closing assignments into MERS are prohibited in these states.

The agency announcements may be found by following the links provided.

http://www.freddiemac.com/uniform/unifnews.htmlB8-7-01: Mortgage Electronic Registration Systems (MERS) (04/15/2014)B8-7-01: Mortgage Electronic Registration Systems (MERS) (04/15/2014)B8-7-01: Mortgage Electronic Registration Systems (MERS) (04/15/2014)

https://www.fanniemae.com/content/guide/selling/b8/7/01.html

TRI-STATE 2014 CONVENTION

 

Optimal Mortgage Services, LLC is currently at the conference. 

Please say hello to Paul Hildebrand or Philip Neri if you see them at one of the sessions.

This is the Link for more Information - http://www.tristatemba.com/welcome.html

 

TRI-STATE 2014 CONVENTION

Optimal Mortgage Services, LLC is Registered and Attending This Convention.

The Convention is Scheduled for Wednesday April 9th through Friday April 12th.

Please Check Back Often Before and During the Conference for any Sponsored or Hospitality Invitations.

This is the Link for more Information - http://www.tristatemba.com/welcome.html

The Tri-State Mortgage Bankers Conference is the convention for Mortgage Banking in the Region. Join us April 9-11, 2014 in Memphis once again at the renowned Peabody Hotel for an even more exciting and NEW mortgage banking convention experience! In 2013, we held this event for the first time ever in partnership between the Arkansas, Mississippi, and Tennessee Mortgage Bankers Associations. More than four hundred industry professionals joined together in Memphis for an event that brought in the value of the National MBA convention to our Regional area; offering high-profile speakers and education applicable to our states for about 1/8 of the cost of the national convention, and in a key location that is easily accessible.

MERS®

 

Optimal Mortgage Services offers a solution to your MERS® compliance needs.  Our proprietary software, SMART, provides the tools needed to perform all reviews required.  We can provide data reconciliation and document reviews in accordance to MERS® requirements and acknowledge your Annual Report as an independent review company.

MERS®

 

Optimal Mortgage Services, LLC is proud to announce its membership with MERS®.  On February 28, 2014, we became a Patron Member. 

Upcoming Conference

We will be attending the MBA's National Mortgage Servicing Conference & Expo 2014