Vermont Attorneys Title Corporation

• Vermont Title Standards Index ›

  • 1.1 The Role of the Examining Attorney
  • 1.2 The Examining Attorney's Attitude
  • 1.3 Definition of Marketable Title
  • 1.4 Reference to Title Standards in Real Estate Sales Contract
  • 2.1 Period of Search
  • 2.2 The Concept of the Chain of Title and its Relationship of the Rule of Record Notice and the Scope of the Title Searcher's Obligation
  • 2.3 Effect of Recording Instruments Claiming an Interest in Real Estate
  • 2.4 Wild Instruments: Instruments by Strangers to the Record Chain of Title
  • 2.4A After Acquired Property
  • 2.5 Priority of Conveyances
  • 2.6 Time When a Conveyance is Considered as Properly "Recorded"
  • 2.7 Record of Expired Leases or Expired Interests
  • 4.1 Limitation on the Use by Grantor of Corrective Deeds
  • 6.1 Grantors
  • 6.2 Majority
  • 6.3 Mental Capacity
  • 6.4 Marital Interests
  • 6.5 Powers of Attorney
  • 7.1 Grantees
  • 8.1 Name Variances
  • 9.1 Execution, Witnessing and Acknowledgement
  • 11.1 Delivery
  • 13.1 Conveyance by Heirs' Deed
  • 13.2 Conveyance by Devisees in Lieu of Probate Administration
  • 13.3 Omitted Real Estate or Faulty Description of Closed Estate
  • 13.4 Conveyance by Trustee of a Non-Probate Trust
  • 14.1 Conveyance to Two or More Persons
  • 18.1 Federal Special Gift Tax Lien
  • 18.2 Irregularities and Discrepancies in Discharges of Mortgage and other Documents
  • 18.3 Discharges of Corrected, Re-Recorded, or Modified Mortgages
  • 18.4 Effect of Failure to Discharge Assignments of Leases and/or Rent, Riders or Financing Statements
  • 18.5 Discharges Involving Mortgage Electronic Registration System (MERS)
  • 20.1 Presumptions Applicable to Corporate Conveyances
  • 22.1 Limited Liability Companies
  • 23.1 Federal General Tax Lien
  • 24.1 Federal Special Estate Tax Lien
  • 25.1 Federal Gift Tax Lien
  • 27.1 Vermont Estate Tax Lien
  • 28.1 Establishing Marketable Title To Interests In Real Property Owned By Failed Financial Institutions
  • 28.2 Title of the Receiver of a Failed Financial Institution to the Assets of That Institution
  • 28.3 Title of the Immediate Transferee of the Receiver of a Failed Financial Institution
  • 28.4 Marketability of Title In a Real Estate Interest of a Failed Financial Institution for Which No Conveyance, Transfer or Assignment Appears of Record Prior to the Dissolution of the Bridge Institution Which Had Continued The Business of the Failed Institution
  • 28.5 Discharges, Partial Releases, Assignments and Foreclosure of Mortgages of a Failed Institution By a Transferee of the Receiver For Such Failed Institution

Standard 18.5

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DISCHARGES INVOLVING  MORTGAGE ELECTRONIC
REGISTRATION SYSTEM (MERS)

When MERS is the record holder of a mortgage, the mortgage shall be discharged only by MERS.  A valid discharge may be issued by (1) MERS, or (2) a member of MERS acting through a certifying officer of MERS.

Comment 1:  MERS was created for the purpose of streamlining the mortgage process by eliminating the need to record assignments. When MERS is the mortgagee of record, a discharge is executed by an officer of MERS.  MERS may also act as nominee for the lender and servicer and, if named as nominee, MERS remains as nominee regardless of how often the mortgage is sold.

Comment 2:  MERS serves as mortgagee of record or as nominee for the beneficial owner of the mortgage loan. MERS becomes the mortgagee of record by assignment or in the original security instrument (MERS as Original Mortgagee or "MOM"). Once MERS is the mortgagee of record, subsequent assignments of the mortgage are not necessary upon a transfer of servicing to another MERS member or the sale of the beneficial interest in the note because MERS remains the mortgagee on behalf of the current owner and servicer. The servicer of a MERS-registered loan has the legal authority to discharge the mortgage on behalf of MERS because, as a member of MERS, authority was granted to their officers through a corporate resolution.  The person authorized to sign discharges is sometimes referred to as a “certifying officer” by MERS.

Comment 3:  A title examiner who finds a discharge signed by a member of MERS may presume that the signer was a duly appointed certifying officer.

Example: A Mortgage from “John and Mary Doe to MERS as nominee for ABC Bank” may be discharged by either: (a) a MERS certifying officer from ABC Bank or (b) by a MERS member other than ABC Bank acting through a certifying officer. 

Comment 4: For assistance in obtaining a discharge or getting help from MERS, determining whether a particular lender is a member of MERS, information may be obtained from:

 MERS website: www.mersinc.org
 MERS Help Desk: 1.888.680.6377
 MERS Voice Response Unit: 1.888.679.6377
•  provide the Borrower’s SSN or the Mortgage Identification
Number (MIN) on the mortgage and the automated system will provide  the name of the current servicer.

Comment 5:  A title examiner may consider information within the discharge to determine that the discharge was executed on behalf of MERS and is, therefore, a valid discharge of a MERS mortgage.  Such information may include the existence of a MIN (MERS Mortgage Identification Number), a reference in the body or signature line to MERS, or a reference to an assignment to MERS.

History

September 26, 2008  This standard was added.

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