Mortgage Electronic Registration Systems hopes that an outsourcing arrangement will improve service for its members.
A deal announced Thursday has MERSCORP Inc.’s mortgage services support and member-facing helpdesk services being taken over by Genpact Limited. The deal will last for seven years and starts in December.
Among U.S. functions being handled by Genpact is the receipt, identification and delivery of mortgage-related correspondence. Typical correspondence includes recordable documents, requests for mortgage discharge and notices of foreclosure or bankruptcy.
MERS’ helpdesk operations will also be managed by Genpact.
The arrangement is expected to cut costs and improve the quality and accuracy of the underlying business processes.
MERS is an electronic registry with more than 2,500 members that is used on more than 60 percent of new mortgage originations, the statement said.
“Genpact presented us with a compelling solution, and we felt our commitment to service excellence and quality could be heightened by taking advantage of Genpact’s end-to-end process thinking and methodology as well as their recognized mortgage services capabilities,” MERS President and Chief Executive Officer R.K. Arnold said in the announcement. “Members should expect no disruption in service as a result of the planned migration.”
The MERS system, which has reportedly been used on 65 million home loans, is often challenged in court by delinquent borrowers who face foreclosure and seek to delay the repossession.
Fannie Mae issued a clarification on Monday that any of its MERS-registered loans in foreclosure must be assigned back to the servicer before completing the foreclosure.
