www.hudclips.org 


U. S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

                       December 10, 1997
 
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
 
Mortgagee Letter 97-48
 
TO:  ALL APPROVED MORTGAGEES
 
SUBJECT:  Mortgage Electronic Registration Systems, Inc. (MERS)
          as nominee for original mortgagee on FHA-insured loans
 
    This Mortgagee Letter is to provide further information
regarding FHA-insured loans that are registered with MERS.  MERS
has initiated a change to show MERS as nominee for the original
mortgagee on the security instrument.
 
    The Department recognizes the benefit to mortgagees by saving
the cost of assigning the mortgage to MERS after the initial
recording and does not object to the change.  Mortgagees are
required to ensure that they can obtain marketable title to be
conveyed to the Secretary should they need to make a claim.
 
    As mentioned in Mortgagee Letter 97-30 , dated July 16, 1997,
registering loans on MERS is voluntary.  Mortgagees must still
comply with all regulations, reporting requirements and policies
of the Department for FHA insurance.
 
Sincerely yours,
 

Nicolas P. Retsinas
Assistant Secretary for Housing-
Federal Housing Commissioner