The technology vendor said the service is designed to help MERS members avoid sanctions, penalties, or revocations that could result if they are ruled to be out of compliance with the new requirements.
Revised quality assurance standards require all MERS general members to have an independent, third-party review of their quality assurance plan annually. (Since 2012, MERS members must conduct reconciliation of their portfolios on a monthly or quarterly basis to meet the new data integrity requirements.)
“We understand the critical importance for servicers and lenders to remain MERS compliant, but we also understand the difficulties they face trying to implement a MERS quality assurance system with internal resources," said Michael Zwerner, senior vice president for Interthinx.
The Interthinx MERS Compliance Audit Service uses a three-pronged strategy covering independent, third-party, annual reviews; monthly or quarterly portfolio reconciliations; and document reviews and validations.
Risk auditors conduct the annual review through an on-site review at the member’s facilities. Results are captured on an executive summary that outlines variances and recommended best practices for remediation when filing the plan with MERS at audit conclusion.
Zwerner told National Mortgage News, "Our team performs a robust annual review conducted on-site in the member’s facilities. Seasoned auditors provide a thorough gap analysis of the MERS member’s Quality Assurance plan and procedures. We feel that an on-site validation ensures a collaborative engagement process, and yields a sound plan that is well supported with industry leading strategies and best practices.”
Zwerner said Interthinx can work with an organization to design a precise plan for MERS compliance through management of self-audits and testing.