Contact:

Kathleen McNeilly
Phone: 703-761-1274
Email: kathleenm@mersinc.org

Vienna, VA - MERS will begin development in September on a new product called MERS® Commercial. It will reduce costs for originating, securitizing and servicing commercial mortgages by eliminating the need to prepare and record assignments. MERS® Commercial is similar to the MERS residential program, but specialized for the commercial market.

Wells Fargo, Bear Stearns, Banc of America, GE Capital and GMAC provided the initial funding. The venture is endorsed by the Commercial Mortgage Securities Association (CMSA) and the MBA’s Commercial Real Estate/Multifamily Finance Board of Governors (COMBOG).

Originators and Issuers will save hundreds of dollars per loan in assignment preparation and recordation costs, which is a real cost savings. All participants in the lending process will benefit by having access to a standardized final certification document checklist on the MERS® System.

“Electronic registration for the CMBS marketplace will go a long way toward eliminating the significant risk of repurchase due to defects in loan documentation”, said Dottie Cunningham, Chief Executive Officer and Executive Director, CMSA. “MERS® Commercial will help the industry manage the geometric growth of CMBS. During the past decade, CMBS has grown from $10 billion to over $400 billion. Clearly, we need technology to manage our growth and to eliminate the overwhelming costs associated with using obsolete tools to conduct business.”

“The MBA firmly endorses MERS® Commercial”, said Tahir Naseem, Mortgage Bankers Association of America, Manager Commercial/Multifamily. “We are excited about the procedural and economic benefits this initiative will provide to our members’ operations in the CMBS market place.”

“We appreciate the leadership of the MBA and the CMSA in bringing together industry players to help develop MERS® Commercial,” said Dan McLaughlin, MERS Executive Vice President and Product Division Manager. “With such strong support, we are confident MERS will soon be the preferred way of doing business in the CMBS marketplace, just as it is now for residential.”

“The value of MERS® Commercial is significant, and with both the MBA and the CMSA working with their constituents to develop ‘best practices’ MERS is a natural fit,” said Carson Mullen, MERS Executive Vice President and Customer Division Manager.