MERS, Inc. announces marketing alliance with Stewart Title.

HOUSTON--(BUSINESS WIRE)--Nov. 1, 1996--Paul Mullings, president and CEO of Mortgage Electronic Registration Systems, Inc. (MERS) announced the formation of a strategic marketing alliance to accelerate the early usage of MERS by the mortgage finance industry.

Stewart Title, a Houston-based subsidiary of Stewart Information Services Corporation ("NYSE-STC"), Hamilton, Carter, Smith & Co., Hanover Capital Partners Ltd., and MGIC will jointly market MERS through their established sales and marketing forces. This group was chosen for their demonstrated commitment to MERS' initial and long-term success, and their reputations as leaders in the mortgage industry.

In meeting with the press, Mullings stated, "After 5-years development, MERS is a reality. In March 1997 the system will launch live to two charter members: Allied Mortgage Group, Incorporated and Norwest Mortgage, Incorporated. This marks implementation of a highly efficient electronic system whereby every mortgage loan can be registered electronically, then tracked through transfers of ownership rights throughout the life of the loan. This will streamline ownership, minimize errors and fraud and reduce expenses to the lender while providing a better and more cost efficient service to the customer. Mortgage industry leaders have enthusiastically participated in the innovative thinking that has gone into development of MERS."

Speaking on behalf of Stewart Title, Bert Corkill, chairman of Stewart Mortgage Information, an affiliate of Stewart Title, stated, "Stewart's financial strength and its 103-year service to the mortgage lending industry provides a natural springboard for our commitment to MERS. The paper chase of yesterday is being replaced with automated electronic commerce. Developing affordable, easy-to-use technological solutions that provide faster service, more information and a real competitive edge is of paramount importance today. MERS is a needed solution to problems faced by the entire industry. We work with all segments of the real estate industry throughout the United States and through our on-going educational and marketing programs we will stress the important technological advantages that MERS offers. MERS already has the full support of Fannie Mae, Freddie Mac, Ginnie Mae, the Mortgage Bankers Association of America and the American Land Title Association. MERS advances, speeds and simplifies the tracking of loan portfolios. We are proud to be selected as one of four companies to help MERS spread throughout the financial industry."

Since the inception of this industry challenge 5 years ago, Stewart Title has been represented by Jody Natoli, president of Stewart's Mortgage Services Division. Stewart Mortgage Services handles loan assignments, document retrieval, lien releases and investor delivery services on an out-source basis for mortgage lenders in all 50 states. -0-

Mortgage Electronic Registration Systems, Inc.
----------------------------------------------
 Global electronic commerce is a brave new world for most real estate
financial professionals.  With the proliferation of
direct-to-consumer on- line financial services, technology's impact
is already being felt industrywide.  MERS has been incorporated by
leaders in the mortgage industry to be owned by the industry, and
operated for the benefit of the industry, applying technology and
electronic commerce to:

   o  transform paper-based processes to an electronic format
   o  improve operational efficiencies
   o  increase the liquidity of mortgage rights
   o  increase the value of mortgage services rights
   o  improve the profitability of the industry
   o  improve the flow and accuracy of information relative to the
      ownership of mortgage rights
   o  facilitate continuing improvements through technology and electronic
      commerce

-0-

MERS information technology partner is Electronic Data Systems (EDS), which will work closely with members to facilitate installation and technical integration. EDS has more than 35 years of successful experience managing large and complex development and implementation projects.

A loan registered with MERS will receive a permanent Mortgage Identification Number (MIN) as early as at loan application. The MIN is designed to "wrap around" the lender's existing loan number. The universal MIN reduces research, cross-referencing and handling time and enhances fraud detection.

The paper mortgage (or deed of trust) in favor of the lender will still be executed and recorded in the public land records as it is today; an assignment of the mortgage will be recorded simultaneously in the land records naming MERS as "morgagee-of-record." MERS will track the ownership and transfers of servicing rights and beneficial rights on the MERS system electronically, thus eliminating the need for preparing and recording subsequent assignments of the mortgage when mortgage rights are traded.

MERS consolidates in one location ownership information currently found in closing documents, public land records, and mortgage assignments. As mortgagee-of-record, MERS will receive legal notices. MERS will forward mail to the appropriate servicer upon receipt electronically whenever possible. The servicer will continue to perform loan servicing function as it does today.

As announced today, the initial Rollout Schedule of MERS Charter Members is: -0-

   March 1997   Allied Mortgage Services, Incorporated
                Norwest Mortgage, Incorporated
   April 1997   1st Nationwide Mortgage
   May 1997     GE Capital Mortgage Services, Incorporated
                Knutson Mortgage Corporation
                Merrill Lynch Credit Corporation
                ReliaStar Mortgage Corporation
   July 1997    HomeSide Lending, Incorporated
                Weyerhaeuser Mortgage Corporation

-0-

The other MERS Charter Members are building their integration plans to schedule further roll outs during the year.

Stewart's primary business is title insurance. The company issues policies through more than 3,700 issuing locations on homes, commercial property and other real estate located in all 50 states, the District of Columbia and several territories and foreign countries. Stewart also provides real estate information services in domestic and foreign markets.

CONTACT: Stewart Information Services Corp., Houston

Max Crisp or Steve Perkey, 713/892-8900