MERS is a national electronic registry for tracking servicing rights and beneficial ownership interests in mortgage loans; it also acts as the mortgagee of record and, as such, is the nominee for both the servicer and the beneficial owners of mortgage loans in the public land records.
MERS becomes mortgagee of record in one of two ways: the first is by an assignment from a lender or servicer to MERS; the second is by being the mortgagee of record as nominee in the original security instrument when the loan is closed.
In either case the holder of the mortgage on the encumbrance sheet will be listed as Mortgage Electronic Registration System, Inc., without any reference to the institution for which MERS is holding the mortgage, whether or not the original mortgage or any subsequently filed instrument affecting the mortgage makes reference to the party for whose benefit MERS is holding the mortgage.
Registry districts should not (without approval from Boston) accept a mortgage running to MERS which does not contain language substantially the same as the language set forth below. An assignment of a mortgage to MERS does not require similar language.
Language to be included in MERS mortgages
"Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument; but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assign), has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing or canceling this Security Instrument."
A discharge properly executed by MERS, with or without reference to any party for whose benefit MERS is holding the mortgage, shall be accepted for filing. A discharge executed only by the underlying lender for whose benefit MERS is holding the mortgage shall not be accepted for filing without approval from the court’s Chief Title Examiner or order of the court.