7 Things a MERS® Annual Quality Assurance Standards Compliance Must Have
Changes in Compliance Reports
The MERS® Annual Independent Attestation has been replaced by an Annual Report of Quality Assurance Standards Compliance. This Report is required from the Executive Sponsor for each Member Servicer or Subservicer each calendar year, and confirms:
1. Member has in place procedures designed to provide reasonable assurance that it has submitted to MERSCORP data for all MERS® System required and conditional reporting fields.
2. Member has conducted system-to-system reconciliations for all MERS® System required and conditional reporting fields at the required frequency.
3. Required and conditional fields entered on the MERS® System match those values in Member’s internal system, and discrepancies and remediation activities necessary to align the two systems are tracked and monitored on aging reports until cleared.
4. Member has in place procedures designed to provide reasonable assurance that it has conducted daily capture of all reject/warning reports associated with registrations, transfers, and status updates on open-item aging reports.
5. Member has in place procedures that are designed to provide reasonable assurance of compliance with the Rules and Procedures applicable to the MERS Signing Officers.
6. Member has monitored its performance against Member’s Quality Assurance Plan and has reviewed the plan at least annually for effectiveness and has revised the plan as necessary.
7. The Member has noted any exceptions to the above conditions as attached.
Report Due Date & Membership
The Annual Report is due by December 31 and may be completed by an independent control function inside your organization (e.g. Corporate Compliance, Risk Management, etc.), or by an independent quality control company not affiliated with your organization.
Lite Members are not required to submit an Annual Report of MERS® System Quality Assurance Standards Compliance. However, if a Lite Member is upgraded to General membership status because they are servicing one or more loans for more than 90 days, they become responsible for all Member Servicer requirements as soon as they are upgraded.
Due to the revised format of this Annual Report, there is an updated QA manual and QC Plan.