Ensuring mortgage loan documents are accounted for and properly recorded is a full-time job with little or no margin for error.
In response to this lingering risk, mortgage technology firm ServiceLink rolled out a new tool: the MERS Reconciliation and Resolution program, an initiative that will operate through the company’s LoanCare system, monitoring and managing data from the Mortgage Electronic Registration Systems.
The idea is to ensure lenders and servicers have all of the correct information and are compliant with all industry standards.
The program reviews all daily activity, comparing data from MERS and ensuring all of the information is correct across multiple registries and recording platforms.
The tool also offers a three-way review of registered loans to provide updates on registration data, loan documentation and other information in the system of record to ensure accuracy throughout the loan’s lifecycle.
"Many providers tout reconciliation solutions, however the services they provide don't fully meet the definition of 'reconciliation,'" said Virginia Earley, director of client solutions with ServiceLink's LoanCare servicing division.
"While these offerings are great at comparing datasets and providing convenient lists of discrepancies, lenders and servicers still have to research and correct all of the resulting discrepancies in order to be in, and remain in, compliance with MERS regulations."
To use the tool, lenders and servicers must possess the expertise and resources needed to conduct loan-level research using MERS guidelines.
"The ability to proactively identify and resolve issues within mortgage documents and public records is critical to enhancing portfolio compliance," said Gene Ross, President, ServiceLink's LoanCare servicing division. "MERS Reconciliation and Resolution is a result of our steadfast commitment to providing uniquely powerful programs that eliminate roadblocks to the industry's overall growth and return valuable resources back into lenders' and servicers' organizations."