The Drafting Committee on an Electronic Registry for Residential Mortgage Notes met March 17 and 18, 2017, in Bethesda, Maryland. The primary issue for the Drafting Committee was whether to move forward with drafting a state electronic mortgage note registry at this time or to continue for now to monitor and provide comment on the Federal Reserve Bank of New York proposal for a federal electronic registry for residential mortgage notes.
The Committee was assisted in its deliberations by four very informative presentations. Mr. Bill Beckmann, CEO of MERSCORP Holdings, Inc., gave a presentation regarding MERSCORP’s electronic registries, MERS System and MERS eRegistry. Corinne Milliken, Esq., an attorney with the New York Federal Reserve, presented an overview of the latest draft of the New York Federal Reserve’s proposed National Mortgage Note Repository Act of 2017. Mr. Tod McDonald, Co-Founder, COO, and Head of Partnership for R3, LLC, and Isabelle Corbett, Esq., Senior Counsel and Director of Regulatory Affairs for R3, gave a presentation on distributive ledger technology and its possible use with regard to an electronic registry. Eric Fish, Esq., Senior Vice President for Legal Services, Federation of State Medical Boards, gave a presentation on development of an interstate compact among the states. The Committee is very grateful to all of the presenters for taking the time to share their knowledge with the Committee.
The Committee also received input from stakeholders, including representatives of the FHFA, Fannie Mae and consumer interests, and from its ABA Advisors, Prof. James Durham and Barry Nekritz, Esquire. After a thorough discussion, the Committee had a good idea of what might be the likely structure and contours of a state electronic mortgage note registry. The consensus of the Committee, however, based on the input it received, was that it was not inclined to begin drafting of a state electronic mortgage note registry at this time. Instead, the Committee agreed that for now it will continue to monitor and comment upon the New York Federal Reserve’s proposed National Mortgage Note Repository Act as that draft act moves forward through the Federal Reserve’s vetting process and is presented for consideration by Congress.
The Committee also provided Ms. Milliken with its comments on the latest draft of the proposed National Mortgage Note Repository Act.
H. Kathleen Patchel and Carlyle C. Ring, Co-Chairs
Drafting Committee on Electronic Registry for Residential Mortgage Notes