Intercontinental Exchange has acquired the remaining equity of MERSCORP Holding, owner of Mortgage Electronic Registrations Systems, (MERS). ICE has owned a majority equity interest in MERS since 2016.
The price and terms of the transaction have not been disclosed and will not be material to ICE’s earnings or have an impact on capital return plans.
MERSCORP owns and operates the MERS System, a national electronic registry that tracks the changes in servicing rights and beneficial ownership interests in US-based mortgage loans. Earlier this month, ICE successfully moved the MERS System infrastructure to the ICE Mahwah data centre, an integral requirement for completing the final acquisition of the business.
“As the US mortgage finance industry transitions from a paper-based process to more digital mortgages and electronic notes, MERS is uniquely positioned to provide a seamless process that will bring greater efficiencies to consumers, lenders and institutional investors,” says ICE Chairman and CEO Jeffrey C Sprecher (pictured). “ICE has a well-established track record of transitioning traditional analog businesses to digital marketplaces, and MERS represents another important chapter in that record. We’re excited to work with MERS as it embarks on their next stage of development.”
“ICE’s global infrastructure and experience in making markets more transparent and efficient will enhance the access, scalability and effectiveness of MERS for its more than 5,000 member institutions,” says Bill Beckmann, MERSCORP Holdings CEO. “This is a natural evolution for our business and will provide benefits for participants throughout the industry.”
