How would my organization use the MERS® eRegistry?

The MERS® eRegistry supports two primary functions:

1. It is the industry standard registry service for complying with the provisions of the eCommerce laws as asystem of record for identifying the Controller (holder) and Location (custodian) of the Authoritative Copy ofthe eNote.

2. The MERS® eRegistry supports the seamless and secure delivery of copies of eNotes and other electronicmortgage documents between MERS® eRegistry Participants via MERS® eDelivery.

How does my organization sign up to use the MERS® eRegistry?

Each MERS® eRegistry Participant signs a MERS® eRegistry Addendum, which incorporates additional terms and conditions related to the use of the MERS® eRegistry into its existing MERS® System Membership Agreement.

If your organization is a MERS® System Member, please contact your Regional Director to obtain access to the MERS® eRegistry Addendum.

What are some of the technology components/resources my organization needs to have in place to support the use of eNotes and the MERS® eRegistry?

• eNote/eSigning Resources: If your organization will originate eNotes, it will need to identify its resourcesfor generating MISMO-compliant SMART Doc® eNotes, obtaining borrowers’ eSign consent, capturingborrowers’ electronic signatures, and tamper-sealing the signed eNotes. These components are oftencollectively referred to as the “eClosing Platform”.

• MERS® eRegistry Interface/eNote Storage: Your organization will need to identify the system it will utilizeto submit transactions to the MERS® eRegistry and store copies of eNotes, including Authoritative Copies ofeNotes. Depending on your organization’s role, this may include registering eNotes, initiating transfers, orreporting servicing events to the MERS® eRegistry. This component is often referred to as the “eVault”.

Many technology providers offer integrated solutions that address several, if not all of the components necessary to utilize eNotes and the MERS® eRegistry.

eRegistry

MERS® eRegistryIntegration Guide for New MERS® eRegistry Participants

mersinc.org/eSuitePROPRIETARY

MERS® eRegistry Integration Outline Once your organization submits its MERS® eRegistry Addendum, a Business Integration Resource (“BIR”) at MERSCORP Holdings will be assigned to facilitate the Integration effort and serve as your primary point of contact throughout the process. Similarly, MERSCORP Holdings will request that your organization identify a MERS® eRegistry Integration Contact that will serve as the BIR’s primary point of contact at your organization.

Phase I Integration

The BIR will schedule a MERS® eRegistry Integration Phase I Call to:

• Provide an overview of the core concepts associated with eNotes and the MERS® eRegistry;

• Confirm your organization’s intended use of the MERS® eRegistry;

• Identify the resources your organization has in place to implement key MERS® eRegistry processes; and

• Identify your organization’s target “go-live” date, including an assessment of your organization’s trading partners’ readiness to support eNotes.

Additional calls may be scheduled if all of the objectives above cannot be met during the initial Phase 1 Call.

Phase II Integration

Phase II of MERS® eRegistry Integration begins after your organization has successfully completed Phase I of the Integration process, and typically no less than 6-8 weeks from when your organization plans to originate, fund, service, subservice, or purchase its first eNote, as applicable.

1. MERS® eRegistry Integration Procedures: The BIR will work with your organization’s designated Integration Contact (IC) to document the processes that, depending on your organization’s role, require MERS® eRegistry transactions. The BIR will also facilitate the IC’s identification of the internal resources that will be responsible for performing or monitoring these processes. The IC will be requested to review this document and confirm its accuracy.

2. MERS® eRegistry Practice Transactions: The BIR will identify which MERS® eRegistry practice transactions your organization needs to submit to the MERS® eRegistry Integration (Test) Region based on your confirmed MERS® eRegistry Integration Procedures. The BIR will also recommend the appropriate MERS® eRegistry Integration settings for your organization, which the IC must verify with its eVault provider, as applicable.

• Login credentials to the MERS® eRegistry Integration Region will be provided to your organization’s designated MERS® eRegistry System Administrator so that the IC may review and verify the MERS® eRegistry practice transactions internally and with any applicable vendors. The BIR will also review the completed practice transactions for accuracy.

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Integration Guide for New MERS® eRegistry Participants

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3. Activation: Once the MERS® eRegistry practice transactions have been successfully completed, the BIR will request that the IC confirm the date your organization will be ready to have its profile activated in the MERS® eRegistry Production Region. The BIR will also request that the IC verify your organization’s MERS® eRegistry settings for the Production Region, which will generally mimic the settings utilized in the Integration Region.

• Once your organization’s profile has been established and activated in the MERS® eRegistry Production Region, login credentials will be sent to your organization’s designated MERS® eRegistry System Administrator.

4. Production Transaction: The BIR will monitor your organization’s first transaction in the MERS® eRegistry Production Region. Upon successful completion of the first production transaction, the BIR will notify the IC that the MERS® eRegistry Integration is complete.

After completing the MERS® eRegistry Integration process, the MERSCORP Holdings Help Desk becomes your organization’s primary point of contact for assistance with the MERS® eRegistry. The MERSCORP Holdings Help Desk is available Monday-Friday 8:00 a.m. - 10:00 p.m. ET by calling 1-888-680-6377 or emailing helpdesk@mersinc.org.

Additional MERS® eRegistry Participant Considerations MERS® eRegistry Documentation:

• Please see the MERS® Member Website to download a copy of the MERS® eRegistry Procedures Manual and MERS® eRegistry documentation.

Quality Assurance Requirements:• As a MERS® eRegistry Participant, your organization will be required to submit an Annual MERS® eRegistry

Quality Assurance (“QA”) Plan. • Depending on the Authorized Rights Holder(s) positions that your organization will hold on the MERS®

eRegistry, it will be required to perform reconciliations between your organization’s internal records and the MERS® eRegistry.

• Please see the Quality Assurance Section in the MERS® eRegistry Procedures Manual for more details. MERS® eRegistry Transaction Fees:

• Transaction fees for MERS® eRegistry transactions will be included in the monthly invoice sent to the MERS® eRegistry Participant’s Account Billings Contact. Please see the MERS® eRegistry Pricing Schedule for more information.

eRegistry

Integration Guide for New MERS® eRegistry Participants

mersinc.org/eSuitePROPRIETARY

eRegistry

Integration Guide for New MERS® eRegistry Participants

Follow the eNote:

eNote is Generated by the eVault/eClosing Platform

Borrower(s) Electronically Sign the eNote

Signed eNote is Tamper-sealed

eNote is Stored in the eVault

Copy of the eNote is Sent to Trading Partner(s) via MERS® eDelivery

eNote is Registered on the MERS® eRegistry

Authorized Rights Holder Positions for the eNote Record are Transferred on the MERS® eRegistry to Applicable Trading Partner(s)

mersinc.org/eSuitePROPRIETARY

Key MERS® eRegistry Terms

Term Definition

Authoritative Copy (AC) The unique copy of the Transferable Record (eNote) maintained within the Control environment established by the Controller.

Control A Person has control of a Transferable Record if a system employed for evidencing the transfer of interests in the Transferable Record reliably establishes that Person as the Person to which the Transferable Record was issued or transferred pursuant to Section 16 of UETA and Section 201 of E-SIGN.

Controller The Person named on the MERS® eRegistry that has Control of the eNote and its Authoritative Copy.

eNote A Transferable Record that is registered on the MERS® eRegistry.

eNote Record The data record that is created when a Participant registers an eNote on the MERS® eRegistry.

eRegistry Contact A MERS® System contact who is responsible for responding to MERS® eRegistry questions on behalf of a Participant. Your organization will be asked to identify this resource during the Integration process.

eVault An application that serves as an electronic repository for delivery and storage of eNotes and other mortgage-related files.

Location The Person named on the MERS® eRegistry that maintains the Authoritative Copy of the eNote, and any electronic documents that modify the terms of the eNote, either as Controller or as a custodian on behalf of the Controller.

eRegistry

Integration Guide for New MERS® eRegistry Participants

Key Paper Note vs. eNote Terms

Paper Note eNote

Negotiable Instrument Transferable Record (“eNote”)

Original Note Authoritative Copy of eNote

Possession Control

Holder Controller

Custodian Location

Endorsement and Delivery Transfer of Control

Chain of Endorsements and Delivery Transferable Record Audit Trail

Wet Signature Electronic Signature

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eRegistry

Integration Guide for New MERS® eRegistry Participants

MERS® eDelivery A secure method for distributing eMortgage packages from one (1) Participant to another, using the existing MERS® eRegistry infrastructure and transaction security requirements.

MERS® eRegistry The System of Record that identifies the owner (Controller) of a registered eNote and the custodian (Location) of the Authoritative Copy of the eNote.

Person An individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, governmental agency, public corporation, or any other legal or commercial entity.

Registration The transaction used to send the required information to the MERS® eRegistry to report that an eNote exists that was originated with the MERS® eRegistry language.

Servicing Agent A Participant that is authorized by the Controller to perform certain MERS® eRegistry transactions on the Controller’s behalf. The Servicing Agent on an eNote record can submit Change Data and Change Status transactions.

SMART Doc® An electronic document created to conform to a specification standardized by MISMO. A SMART Doc® locks together data and presentation in such a way that it can be programmatically validated to guarantee the integrity of the document. The MERS® eRegistry accepts SMART Docs® in the MISMO SMART Doc® version 1.02 format.

Tamperseal Date The date and time a Digital Signature was applied to an electronic document. Also known as a Tamper-Evident Digital Signature Date.

Transferable Record An Electronic Record under E-SIGN and UETA that (1) would be a note under the Uniform Commercial Code if the Electronic Record were in writing; (2) the issuer of the Electronic Record expressly has agreed is a Transferable Record; and (3) for purposes of E-SIGN, relates to a loan secured by real property. A Transferable Record is also referred to as an eNote.

Key MERS® eRegistry Terms - continued

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