MERS Response to new TILA Legislation passed by Congress and the Obama Administration

In support of new federal legislation designed to assist homeowners in staying in their homes, MERSCORP, Inc. (MERS) has unveiled a new program that will inform borrowers of changes to the owner of their loan, bringing greater transparency and accountability to the mortgage lending process.

The Helping Families Save Their Homes Act of 2009, signed by President Obama on May 20, 2009, amends the Truth in Lending Act (TILA) 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 thirty days.

Because MERS is the real estate finance industry’s utility, and the repository of information on over 60 million loans registered by lenders on the MERS® System, the company has unveiled a program that will inform the borrower of future changes to the investor when the loan is registered on the MERS® System. The MERS® InvestorID program will automatically send a Mortgage Transfer Notice to the primary borrower when the ownership of their 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,” said 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.”

For more information on MERS® InvestorID, contact MERS at 800-646-6377.