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December 16, 2012

MERS members' external audits due Dec. 31

Dec. 17, 2012 – Credit unions that service more than 1,000 mortgages and are members of the Mortgage Electronic Registration System Inc. are due to submit their first annual independent audit reports of quality assurance standards compliance Dec. 31.

MERS, owned by MERSCORP Holdings, is the only national database that provides free public access to servicer information for registered home mortgages. MERS revised its quality assurance requirements last year. In 2011, members were able conduct their first audits under the new requirements internally, but the audit reports for 2012 to be conducted by an external auditor for some.

Mortgage servicers that service fewer than 1,000 mortgage identification numbers can do their audits internally or use an external firm. Those servicing 1,000 or more have to use an external auditor or consultant. Some institutions ("lite" servicers) don't have to file any audit report.

All members, regardless of the level of servicing activity, are due to submit an updated quality assurance plan to MERS by Dec. 31.