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X12 205 — Mortgage Note

The 205 transmits the structured terms of a mortgage note — the debt instrument signed by the borrower — between closing parties: title company, lender, MERS, custodian.

Purpose

The 205 documents the note terms: promise to pay, principal, rate, term, payment schedule, prepayment terms, default provisions, signers. It is used for Fannie Mae / Freddie Mac eNote (electronic note) and the MERS eRegistry for electronic notes.

It is part of the SMART Doc / MISMO electronic note ecosystem. Acknowledged by 997. For paper notes, the 205 is a structured representation for servicing and custody systems.

Envelope structure

The 205 travels within the three X12 envelope levels (ISA/IEA, GS/GE with functional group MN, and ST/SE). Didactic example in release 004010:

x12 example-205.x12 
ISA*00*          *00*          *ZZ*TITLECO       *ZZ*LENDERBANK     *260514*1430*U*00401*000000205*0*P*>~
GS*MN*TITLECO*LENDERBANK*20260514*1430*1*X*004010~
ST*205*0001~
BGN*00*MN-2026-0042*20260530~
NM1*BO*1*DOE*JANE*A~
N1*LB*LENDER BANK NA*24*EIN-LENDERBANK~
REF*ZZ*MERS-MIN-100012345678901234~
AMT*GW*384000.00~
AMT*PE*0.0675~
REF*ZZ*TERM-360-MONTHS~
REF*ZZ*FIRST-PAYMENT-20260701~
SE*9*0001~
GE*1*1~
IEA*1*000000205~

Common segments

  • Header — ST, BGN (note signing date).
  • Maker / Lender — NM1*BO (Borrower as maker), N1*LB (Lender as payee).
  • Identifiers — REF*ZZ MERS MIN, REF investor loan number.
  • Terms — AMT*GW (principal), AMT*PE (rate), REF*ZZ (term months), REF*ZZ (first payment date, maturity, lockout, prepayment penalty if applicable).
  • Summary — SE.

Common pitfalls

  • eNote vs paper note: for an eNote to be legally enforceable, it must be registered in MERS eRegistry with a Controller; a 205 without a MERS link for an eNote breaks negotiability.
  • ARM disclosure: for an ARM, the adjustment caps, index, margin must be complete in the 205; omissions expose to Truth-in-Lending rescission demands.
  • Note vs mortgage / deed of trust: the 205 carries the note (debt), not the mortgage (security instrument). Do not conflate — the mortgage typically rides in a 206 (Real Estate Inspection) or a non-EDI instrument.

Documentation

The code 205 and the name Mortgage Note are public and listed on x12.org/products/transaction-sets. The complete structure of loops, qualifiers and code lists is distributed by DISA via the proprietary Implementation Guides (TR3). ediverse.io covers only public concepts, the envelope and didactic examples.