LoanLogics offers MERS compliance monitoring for mortgage servicers

Audits can help users of paperless loan registration system avoid regulatory scrutiny

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Even as loan servicers put the "robo-signing" controversy behind them, a paperless loan registration system developed for the mortgage industry in 1997 continues to face lawsuit after lawsuit challenging its authority to foreclose on mortgages on behalf of mortgage servicers. While many of these cases are decided in favor of the system, known as Mortgage Electronic Registration Systems Inc. (MERS), mortgage technology company LoanLogics has come up with a service to help mortgage servicers avoid possible legal action by ensuring compliance with regulations governing MERS. The Fort Washington, Pa.-based firm recently raised $11.2 million in funding from Boston-based growth equity firm Volition Capital and existing investors. LoanLogics' MERS Independent Third-Party Performance Monitoring and Annual Review Service offers something the firm says servicers have done without for too long --  a way to audit and test their MERS controls and processes. “Lenders have long rec...