NYSE owner Intercontinental Exchange acquires full control of MERS
Intercontinental Exchange, the owner of the New York Stock Exchange, has purchased the remaining equity in Merscorp Holdings it did not already own.
The financial terms of the transaction were not disclosed because they were immaterial to ICE, according to a company press release.
"As the U.S. mortgage finance industry transitions from a paper-based process to more digital mortgages and electronic notes, MERS is uniquely positioned to provide a seamless process that will bring greater efficiencies to consumers, lenders and institutional investors," Jeffrey Sprecher, ICE's chairman and CEO, said in the release.
"ICE has a well-established track record of transitioning traditional analog businesses to digital marketplaces, and MERS represents another important chapter in that record," he added. "We're excited to work with MERS as it embarks on their next stage of development."
The exchange previously held a majority stake in Merscorp, which is the corporate parent of Mortgage Electronic Registration Systems.
ICE had been under contract to acquire the remainder of the electronic registry once certain conditions were satisfied. Earlier this month, ICE moved the MERS system's infrastructure to a new data center, which was a key condition of that contract.
"ICE's global infrastructure and experience in making markets more transparent and efficient will enhance the access, scalability and effectiveness of MERS for its more than 5,000 member institutions," Bill Beckmann, Merscorp Holdings' CEO, said in a press release. "This is a natural evolution for our business and will provide benefits for participants throughout the industry."
The MERS system tracks changes in the ownership of mortgages and servicing rights.