Interested in how electronic document recording (eRecording) can reduce your risk as a title company, settlement service provider, real estate law firm, or lender? CSC® is providing a complimentary and informative webinar about the problems that can arise when using traditional paper recording and how eRecording can mitigate many of those common issues
Join CSC’s Director of eRecording Solutions Kevin Kinderman and Product Manager Jason Staley, who will host a webinar covering the benefits of eRecording, with a focus on shortening the recording gap time period. This webinar will also include:
- A real-life example of how eRecording saved a customer time and money
- Different attack vectors (portal versus infrastructure)
- Why eRecording is a must for title companies, settlement service providers, real estate law firms, and lenders
Anu: Hello, everyone and welcome to today's webinar, "Reduce Your Risk Using Electronic Document Recording." My name is Anu Shah and I will be your moderator. Joining us today are Kevin Kinderman and Jason Staley.
Kevin is Director of eRecording Solutions at CSC and manages our nationwide eRecording consultation program. He works with leading title underwriters, real estate firms and lending institutions throughout the US. Jason is the Product Manager of eRecording Solutions. He works with the CSC development team, recording jurisdictions, title underwriters and lending institutions to develop solutions and products to better serve the real estate recording market.
With that, let's welcome Kevin and Jason.
Kevin: Thank you, Anu and thank you to everyone attending. We're glad to have the opportunity to talk to you about some information regarding reducing risks and how electronic document recording can help with that. We want to begin with first doing a short introduction and providing some information about CSC.
CSC was founded in 1899 and we're headquartered here out of Wilmington, Delaware. How our company began--our business was through some corporate compliance and governance services. We specialized in corporate formation or qualification forms or helping businesses or entities get registered with the state they want to do business in. That's obviously evolved. We continue to do that today, but we now also file documents electronically. So, that work that we did from filing documents with state offices has evolved into doing work with local counting recording offices.
We were the first business in 1999 to record a real estate document electronically. It was with Lancaster County, Pennsylvania. So, we have as much history in this field as anyone would. We also provide paper recording services along with electronic document recording. So, for all those jurisdictions that don't yet eRecord, we can do both commercial, residential work in jurisdictions that don't yet.
We're active with some industry associations including PRIA, IGO, ALTA, MISMO as well as some others, even state land title associations or state or county bar associations. Then CSC, we also serve 90% of the Fortune 500, even seven of the top ten lending institutions actually use our eRecording platform.
So, a quick review of today's agenda--we're going to talk about this closing the recording gap point and why that's so important both to the lender and the title insurance company. We're going to talk about the lifecycle of a document. There are so many pieces to this puzzle of a real estate transaction and then getting a document put on record successfully. We'll go through that process.
We'll talk about the value and benefits of electronic recording. We'll discuss choosing a service provider and what you should be conscious of when determining who you should use to eRecord. Then finally at the end, we'll do a live demonstration of our eRecording platform and then we'll also do a Q&A session.
And moving forward, we're actually going to have Jason jump in and discuss a few points as well. So, Jason, the mic is yours.
Jason: Thank you, Kevin. So, as Kevin said, we want to talk a little bit about closing that recording gap or reducing the risk involved with recording real estate documents. I think everybody here is very aware that every mortgage transaction or even property transfer, the banks, the title companies and other lenders assume a certain level of risk, whether that's time to record, so however long it takes for us to get a document to the jurisdiction or understanding what the actual recording fees are going to be.
There is risk involved with it. So, we're going to show you today how eRecording will eliminate that. Also, eRecording assures that every document is recorded quickly. So, back to the gap, it takes that long recording gap and shrinks it into a shorter period. What I want to do is I want to take you through the workflow of eRecording. I know you're all very familiar with the physical paper process, but I want to show you how the process works in the electronic site, so you can start to see how this gap begins to shorten.
Just like with the paper process, you start out with a document that's been signed and is ready to be processed and sent to the county. Now, there are a couple of ways to get that in to our application. If you have an integration with one of our partners, the document can flow straight into our application with some extra data or as we call it indexing. If we're not working with an integration, what you'll do is you'll either scan the document in or if you already have a digital copy of it on your computer, you can upload that image directly into the eRecording application.
Now, with indexing data, this is the values that the county uses to index the document within their land record system. Now, depending on which jurisdiction it is, they have free range on defining what they want to have indexed. So, there are some counties that don't require any indexing on the submitter side and then there are other counties that are very extensive on the requirements that they put on you as you go to send those documents.
But once the indexing is created and the image is there, at that point, you can send the document to the county by clicking send within the application and then it's delivered to the county over a web service. So, if you think of your traditional process, you're going to box these documents up and send them on with a courier or through the post or you may drive down to the local county office and drop them off yourself. In this case, as soon as you hit that button, the transmission begins.
Once it arrives at the county, which will be the right-hand side of this document, the county will actually review the electronic copy within their land record system where it will be stored. They review the document and then they can also calculate the payments, so they're going to know fees for a number of pages or if there's taxes involved, they can calculate it there. They also will, at that point, create an electronic stamp or an electronic endorsement and they will endorse your document with the proper notation with book page instrument.
And then any indexing required that you didn't pass over or they manage themselves, they will bring that into the application on their site and it will store that data. Now, if the document is recorded at that point, when they hit complete on their site, you will get a response back in the eRecording application or if they do by chance happen to reject the document, the two will come right back to you in that eRecording application.
So, if you think of the traditional workflow, it takes time to go from passing it to the courier, traveling depending how far you go, it could be across the country to deliver that document or even going out to drop it off personally, with eRecording it gets to the county as soon as you click the button and then with the first to record, most counties will record documents in the order that they come in, so whether that's electronic, courier or a walk-in, they will measure it by the first one that comes in and they will process electronic ones as they come in before any others.
So, with that, you get a response back. So, with eRecording, in some cases, you're able to get your document back within hours. So, let's go back to talking about this value.
First, we're reducing costs to this process because you're not having to drive, you're not having to ship and with the turnaround time being reduced, again, that time is money. Also, you reduce your number of rejections because you're able to review your documents, you can see requirements to what is required in the sense of margins to make sure it's in compliance.
The security--this is a very important part. With security, you retain the original copy of the document. You're not handing it off to a third-party to deliver it. It stays within your constraints. It is yours to keep and then when you return the electronic copy, you have that copy as well.
Payment errors--this is a big bill. I know some jurisdictions calculating the fees can be very, very difficult and you have to reach out to third-party sources to identify what they're going to be and if you're off by a few cents, there are jurisdictions that will reject the document and then it's got to come back and we start over.
With eRecording, you will receive exactly what the county recorded it for and the payments will then at that point be accurate and then also, back to the checks again, by going through eRecording, you no longer have to play with the physical checks. You're not having to cut checks. You're not having to calculate those. We take care of that for you on an electronic platform. So, I think it goes without saying all these steps improve productivity. It reduces the amount of labor necessary and makes things more secure.
So, to better understand where this is available, I'm going to turn it over to Kevin to talk about the availability.
Kevin: Thanks, Jason. Here's a map that all of you can see that shows the country and all states that have so far implemented electronic recording. You'll see there are four states that have no recording offices implement eRecording but the other 46 have and of those 46, there are over 1,500 recording offices that have implemented eRecording or have adopted it. That may not sound like much knowing that there are over 3,600 recording offices.
However, the 1,500+ that already have, they are the more populous counties throughout the country. So far, of those 1,500+, over 75% of the US population resides within a jurisdiction that does eRecord. So, the majority of us and where we live and even the counties where we do business in, those are counties that have implemented eRecording.
There are at least six states where every recording jurisdiction has already implemented eRecording. Colorado was the first where all 64 counties have implemented eRecording. But it's a great thing because with this legislation that's past at a federal, state and local level, with the short time period that's past of just over a decade, to have so great of the population within the US be within a location that eRecords, this is something that everyone can take advantage of.
To talk a little bit about choosing a service provider, through our experience, these are some things that we sort of encourage you to be conscious of. One thing as a document submitter that's really important to you is you want to be mindful of who has the lowest rejection rate. Again, one of the primary purposes of implementing eRecording is to make your processes from a recording or post-closing standpoint more efficient. Rejections are something you want to eliminate. So, you'll want to consider what service provider has the lowest rejection rate.
You also want to consider which system records the fastest. The recording group within any organization is a specialized group. They have a unique understanding of what's required to get documents recorded. They don't want an impediment when they're trying to get documents recorded. A faster, cleaner, more efficient system is going to be able to let them crank those documents out, get the submitted to the jurisdiction and get them recorded.
Along the same lines as that, they also or you should also want to consider a service provider that has the fewest number of keystrokes or clicks. This might sound a little simple, but there's some real truth to getting the user to operate the system with as much ease as possible. When you have a system that doesn't require a lot of navigating through different screens or clicks, the transition to E-recording is much easier.
You also want to consider imaging correction tools. This is something to be mindful of, but when you scan a document, sometimes there are, I guess, variables, that you want to consider with the contrast setting. Say, you scanned an image and a signature, a notary stamp didn't show up dark enough. Accounting might reject it for that reason. So, you'll want to consider and review the imaging tools that a certain service provider has. So, it allows you to darken the signature block so it doesn't get rejected for that reason. That's one example.
You'll also want to make sure you can rely on a vendor or service provider that has the financial backing and stability to front or advance all recording fees, any sort of taxes. We know there are states with mortgage tax in addition to a realty transfer tax. If you do commercial work, we know that those transactions are large amounts and they're subject to high property tax payments.
We know that you need to rely on a vendor that's got a good relationship with the jurisdictions and has, for lack of better terms, deep pockets to front this money on your behalf to make sure things get recorded properly. So, keep those things in mind as you consider service providers.
Here are a few bullets about what we know has been important from our clients and why they prefer CSC. One thing, to sort of piggyback off the previous slide, we have really focused on faster processing time, specifically when you're uploading images. You may choose to eRecord and submit a single page power of attorney or a single page document. That's not a very big file.
But when you're uploading documents into your vendor's system, you may have a 30-page mortgage or deed of trust. You may have a large image file and you'll want to consider using a vendor where their system has the capacity and bandwidth to process those documents, upload them into the system without any sort of impediment.
Another thing that's really nice about our system, we have a unique database-driven system that allows our application to capture data and capture specific requirements that the counties want to receive from you as the document submitter. We've streamlined the process. We've refined it. We've tuned it just right to make it as efficient as possible, but also include all the details that the county needs.
In addition to the imaging tools I've mentioned before, you may make a simple error, which is common, where you've scanned the document upside down. So, when you load it into our system, you might want the flexibility to rotate the image. Our system has a lot of tools that allow you to refine the image to make sure it conforms to the county's requirements.
Another hot button for a lot of people that have had experience with eRecording is when they're using a platform that operates off of Java, they've experienced some delays or sort of snags in using the system at a good speed. CSC's platform operates off of our own self-contained environment. It's a .NET framework. We manage the system and we found that that platform has been beneficial to the people for efficiency purposes.
Then finally, less vendor risk due to our financial strength. CSC, we're a large company. We've been in business for a long time. We've been able to retain relationships with some of the largest companies in the world and they trust us. Part of that is in large part to our financial strength. They know that we are in a position to front the recording fees and advance taxes without any sort of concern to you. So, keep that in mind as well.
Anu: Thank you, Jason. Thank you, Kevin. So, folks, that is all the time we have today. If we didn't get to your question, we will contact you with a response after the webinar. Thank you to everyone who joined us. We hope to see you next time.