MERS Launches the MERS eRegistry.

Business Editors

VIENNA, Va.--(BUSINESS WIRE)--April 26, 2004

MERS proudly announces the launch of the MERS(R) eRegistry, a system of record that identifies the owner (Controller) and custodian (Location) for registered eNotes, providing greater liquidity, transferability and

"A major component of the eMortgage puzzle is now available and ready for use, ahead of the market," said R.K. Arnold, President & CEO, MERS. "Although it will take many years for the industry to fully adopt this system, it will become widely used because the marketplace is demanding a move towards less paper in the home buying process."

The MERS eRegistry is the first significant step towards the future of an all-electronic mortgage. It was created as a response by the mortgage industry to satisfy certain safe harbor requirements provided under the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (E-SIGN).

"In March 2003, we accepted the mortgage industry's challenge to provide, as quickly as possible, the solution for transferability and liquidity for eNotes," said Dan McLaughlin, EVP, Product Division, MERS. "We are grateful to the Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the many organizations that helped us meet our commitment to design and deliver the MERS(R) eRegistry in such a short timeframe."

The Mortgage Bankers Association (MBA) sanctioned the creation of a single, national eNote registry system and endorsed MERS as the builder and provider of the system on August 11, 2003. EDS in Plano, Tex., is the technology provider for the MERS eRegistry, and has been in partnership with MERS since MERS began in 1996.

"EDS is proud and delighted to have been selected to provide the technology services supporting the MERS(R) eRegistry," said Frank Tucker, Client Delivery Executive for EDS. "It has been an exciting challenge to work with the many members of MERS to formulate this unique industry solution from its conception through user acceptance testing."

"The MERS eRegistry is designed to reduce risk and generate more profits for lenders because the Notes registered on it will be in electronic format," said Carson Mullen, EVP, Customer Division, MERS "It shortens the timeframe between the closing and the securitization of the loan, enabling the Note to move instantly, creating faster funding."

About MERS

MERS is an electronic loan registry created by the real estate finance industry to eliminate assignments when trading residential and commercial mortgage loans. Borrowers name MERS as mortgagee and nominee for the lender on deeds of trust and mortgages that are recorded in the county land records. Lenders then register the loans on the MERS(R) System and electronically track changes in servicing and beneficial ownership rights over the life of the loan.

Loans registered with MERS are inoculated against future assignments because MERS remains the mortgagee of record no matter how often servicing is traded between MERS members. Fannie Mae, Freddie Mac, VA, FHA, Ginnie Mae, the Federal Home Loan Bank MPF(R), California and New York housing authorities, and all major Wall Street rating agencies have approved MERS.