Contact: Karmela Lejarde, Communications Manager
Phone: 800-646-MERS

Washington, D.C., July 27—The U.S. Dept. of Housing and Urban Development has issued guidance clarifying that FHA allows lenders to charge borrowers MERS registration fees on FHA-insured mortgages.

According to a letter from Margaret Burns, Acting Director of the Office of Single Family Program Development of FHA, MERS is a permissible fee because it ultimately reduces costs for borrowers, mortgage lenders, servicers, and Ginnie Mae, among others in the mortgage industry.

Although FHA has always classified the MERS fee as an allowable expense, HUD has updated the FHA Homeownership Center Reference Guide to explicity include the MERS charge as an allowable fee. 

"We are pleased at the vote of confidence that HUD has shown MERS," said R.K. Arnold, MERS President & CEO.  "This explicit statement regarding the permissibility of the MERS fee is significant.  It reduces paperwork for lenders and will save borrowers a few more dollars because MERS eliminates the new to prepare and record assignments.

To view the the HOC Reference Guide, click here.

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