What is a primary benefit of MERS to the escrow holder?

• A. It allows for more rapid loan payoff.
• B. It eliminates closing delays.
• C. It eliminates the question as to who owns or services the loan.
• D. All of these.

Answer: (D)

MERS provides a centralized, computer-based record of who owns a mortgage and who services it, so transfers and changes in servicing happen with less paperwork in the real world. For the escrow holder, that translates into fewer closing delays because there’s less need to record new assignments in each county every time the loan changes hands. It also makes it clear who currently owns the loan and who services it, which helps the escrow holder pull payoff statements, disburse funds, and obtain lien releases without ambiguity. Because these efficiencies work together, the system benefits payoff speed, reduces closing delays, and resolves questions about ownership or servicing, making all of these benefits apply.