Vienna, VA—MERS announces the release of its latest product, MERS® Commercial, designed to eliminate the repurchase risk and costs associated with preparing, recording and tracking assignments for the commercial mortgage-backed securities (CMBS) marketplace.

Commercial originators and issuers can save hundreds of dollars in preparing and recording assignments; in cases of cross-collateralized loans, the savings can be in the thousands. Missing interim assignments are eliminated, making the lien release process more efficient for commercial servicers. MERS® Commercial also allows special servicers to foreclose more efficiently by eliminating the problem of missing interim assignments.

“MERS undertook the task of developing this product with the endorsement of the Mortgage Bankers Association of America and the Commercial Mortgage Securities Association,” said R.K. Arnold, President & CEO of MERS. “It was mainly driven by a need in the commercial marketplace for a simpler loan process, elimination of paperwork and cost-savings.”

The first MERS® Commercial loan closed on July 10, 2003 by Bank of America for approximately $300 million. It was collateralized by over 40 properties in over 20 states.

“MERS® Commercial allowed us to more easily originate this complex loan for Bank of America,” said Joe Forte, senior partner at Dechert LLP. “The MERS team was exceptionally responsive to our inquiries. Within 24 hours, they answered all our questions and gave us all the information we needed to close the deal. I believe that the use of MERS® Commercial will quickly become the standard in CMBS transactions.”

“We are excited about the value that MERS® Commercial brings to the commercial lending industry,” said Janice Smith, head of CMBS conduit operations for Banc of America Securities. “This product addresses the longstanding industry problem involving missing or improperly recorded assignments, while also substantially streamlining the overall loan transfer process. We believe that MERS® Commercial will play an important role in helping the CMBS market maintain its liquidity by making loan transfers simple and efficient.”

MERS® Commercial for the CMBS marketplace is designed especially for use by issuers, master servicers, custodians, originators and special servicers. It is easily accessed through the Internet, through a secure, password-protected web-based interface. It supports loan structures with multiple promissory notes and multiple properties in the collateral structure, and provides a method to identify how many security instruments and UCC documents were present at the time of loan closing.

“MERS® Commercial streamlines the final certification process,” said Dan McLaughlin, Executive Vice President, Product Division, for MERS. “It reduces the risk that a lender will have to repurchase a loan.”

MERS® Commercial has been jointly funded by Banc of America Securities, Bear Stearns, GE Capital Real Estate, GMAC Commercial, John Hancock and Wells Fargo.

“It is important for the success of this effort that the industry’s critical players are involved and committed,” said Carson Mullen, Executive Vice President, MERS Customer Division. “They have given their financial support from the outset, as well as their participation in the development of the final product.”

"We are excited about the potential for MERS® Commercial," said Mary Anne Ashmore, Chair of the CMSA/MBA Task Force on Loan Document Integrity and First Vice President of ABN AMRO/LaSalle Bank,. "In addition to reducing the risks associated with collateral documents, it also significantly reduces the c