Reston, Virginia-based ""MERSCORP, Inc."":http://www.mersinc.org (MERS) unveiled a new program on Tuesday that informs borrowers of ownership changes regarding their mortgage. The company says its program supports new federal legislation, which is designed to help homeowners keep their homes by bringing greater transparency and accountability to the mortgage lending process.
The ""Helping Families Save Their Homes Act of 2009"":http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgixdbname=111_cong_bills&docid=f:s896enr.txt.pdf, signed by President Obama on May 20, amends the Truth in Lending Act (TILA) and requires that, when a loan secured by the primary home of the borrower is sold, transferred, or assigned, the new owner of the loan notify the borrower in writing of the transfer of ownership within thirty days.
MERS is a utility launched by the real estate finance industry to streamline lending practices and eliminate time-consuming paperwork. Its repository includes information on over 60 million home loans electronically registered by lenders on the MERS System.
The company's new notification program will inform the borrower of future changes to the investor when the loan is registered on the MERS System. The MERS InvestorID program will automatically send a Mortgage Transfer Notice to the primary borrower when the ownership of their loan changes. The company explained that MERS members who have developed their own notification solution can opt out of using MERS InvestorID.
R.K. Arnold, MERS president and CEO, said, ""We are excited to support Congress and the Obama administration's efforts to help distressed borrowers stay in their homes. This program will be another tool for the real estate finance industry and the administration's efforts to bring greater transparency and accountability to the mortgage lending process.""