MERS® Audit Process

SYSTEM-to-SYSTEM

Quality Mortgage Services will perform the monthly system-to-system reconciliation, on behalf of the General member, as required by MERSCORP. A comparative review of information contained in the servicing/origination system(s) and information in MERS® System will be performed electronically in the QMS proprietary software, Mortgage Analysis Review Software, (MARS) to ensure that data entered into the MERS® System is accurate. Exceptions will be researched by QMS MERS compliance reviewers to determine the source of the discrepancy. The QMS proprietary software, MARS, allows our clients an interactive secure vessel in which to view exceptions surfaced in the data reconciliation. The analysis will contain 100% of the loans in which servicing was purchased and loans originated within the month of review in addition to the existing portfolio.

LOAN ORIGINATED & PURCHASED

Quality Mortgage Services performs a full MERS® review of a 10% random sample of loans that have originated or in which servicing had been purchased, “registered on the MERS® System”, during the month. The MERS® System, origination/servicing system(s) and closing documents are reviewed by our MERS® compliance auditors. Variances in data, exceptions to registration deadlines, and inaccurate data contained in the closing documents are reviewed and results of the MERS® compliance audit is reported and available in the QMS MARS portal.

TRANSFERRED, DEACTIVATED, PAID-OFF, MODIFIED, ASSUMED, & FORECLOSURES

Quality Mortgage Services will perform a complimentary 100% full MERS® compliance review of loans that were transferred, deactivated, paid-off, modified, assumed, and subordinated or foreclosures where proceedings had commenced during the month of the targeted review. The following is required, if applicable:

• Copy of Lien Release/Reconveyance/Discharge
• Copy of Assumption, Modification or Subordination agreement(s)
• Assignment from Mortgage Electronic Registration Systems, Inc. in the case of a foreclosure
• Assignment if the loan is deactivated or transferred

The QMS MERS® quality control review will provide an assurance to the lender that the registration, transfer and deactivation process has been performed in an accurate and timely fashion and those milestone events in servicing are documented in MERS®.

QMS can provide a customized Quality Control Plan compliant with MERS® Rules and Procedures. The MERS® Quality Control Plan must be reviewed annually for effectiveness and revised as necessary.

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