Introducing MERS® eDelivery

Enabling eCommerce for the Mortgage Industry

March 31, 2006
 MERS Mission

MERS was created by the mortgage banking

industry to streamline the mortgage process by
using electronic commerce to eliminate paper.
Our mission is to register every mortgage loan in
the United States on the MERS® System.
 What is MERS?

MERS is an industry utility created by mortgage

bankers to promote electronic commerce and eliminate
paper-based processes.
– MERS eliminates the need to prepare and record
paper assignments when selling loans between
MERS® Ready members.
– MERS operates the MERS® eRegistry to provide
liquidity for electronic notes.
 What is the MERS® eRegistry?

• The industry’s response to the requirements imposed by UETA and

E-SIGN

• The central location to identify the current Controller (holder) and

Location (custodian) of the Authoritative Copy of an eNote

• Logical extension of the MERS mission and expertise and an

evolution of the MERS® System
 What is MERS® eDelivery?

• Standard platform for secure delivery of electronic

documents between trading partners
– Leverages MISMO request/response envelope messaging
and eMortgage Packaging standards currently used by
the MERS® eRegistry
– Requires encrypted frame relay or VPN connectivity
– Mortgage Identification Number (MIN) for loan level ID
– MERS Org. ID for trading partner ID
eDocument Delivery Dilemma
MERS® eDelivery
 Usage Requirements

• Must be a member of MERS® eRegistry with MERS

eDelivery Flag set to Y
• MIN must be reserved or registered on the MERS®
System or MERS® eRegistry
 Functionality

• Can transmit eDocuments to multiple parties at one

time (limit of 10 recipients)
• Requests can contain one or multiple MINs within an
eMortgage Package
• eMortgage Package size is currently limited to 1 Meg
• eMortgage Packages must be Base 64 encoded
• MERS does not interrogate the eMortgage Package
 Functionality

• System-assigned Tracking Number

• Members accept or reject eDelivery based on Tracking
Number, not by MIN
• eMortgage package delivery processed after a recipient
Accept Confirmation
• Fee charged per MIN when at least one recipient
accepts delivery request
 Process Flow

®
MERS eDelivery Successful
Requestor eDelivery Recipient(s)

Initiation Initiation

Response
Pending Notification

Acceptance Confirmation

Response

Completion Notification Distribution

Process Flow
Recipient Response Message
Available August 2006

• Recipient can send an optional response back to

the requestor with document status/codes
• Optional Message request
– MIN included in request
– Optional user defined status/codes
– Potential for multiple status/codes per MIN
• Trading partner specific
Recipient Response Message

®
MERS eDelivery Successful – Proposed Recipient Delivery Message
Requestor eDelivery Recipient(s)

Initiation Initiation

Response
Pending Notification

Acceptance Confirmation

Response

Completion Notification Distribution

Recipient Delivery Acceptance

Recipient Delivery Acceptance Recipient Delivery Acceptance
Thank you for your business

More information is available from the MERS Web Site

(WWW.MERSINC.ORG).