Mortgage division has been registering loans with MERS and transferring MIN upon sale to secondary market investor. Retail division had not been doing residential mortgage loans, so has not worked with MERS. We are going to begin purchasing residential mortgage notes (only, servicing will remain with originator) from third party originators. These originators register all loans with MERS. Retail division believes we will need allonge to note and individual lien transfers recorded with county(ies) to perfect our security position. My understanding of MERS system is that registration and MIN transfer of beneficial rights (TOB) with appropriate MERS verbiage in the deed of trust/mortgage, eliminates the need for separate recording with individual counties.
Advice, guidance, or recommendations for further information sources would be greatly appreciated.
My understanding is that the answer varies from one state to another. We suggest you have legal counsel determine the appropriate procedures for each state in which you are engaged in business, then build appropriate procedures to assure that your institution is adequately protected.