MERS Program Identifies Investor Changes

program from MERSCORP Inc. (MERS) offers mortgage companies a way to stay compliant with a provision found in the recently enacted Helping Families Save Their Homes Act of 2009. The act, signed into law by President Obama on May 20, amends the Truth in Lending Act 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 30 days. MERS says its system, which currently houses information on over 60 million loans, now has a program that will inform borrowers of future investor changes. The InvestorID program will automatically send a mortgage transfer notice to the primary borrower when the ownership of his or her loan changes on the MERS System. MERS members with their own notification solution can opt out of using MERS InvestorID. "We are excited to support Congress and the Obama administration's efforts to help distressed borrowers stay in their homes," says R.K. Arnold, MERS president and CEO. "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." SOURC

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