Top 5 Document Rejection Reasons and How to Avoid Them
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Rejection. Just reading the word stings. In the world of document submission and recording rejection can have a detrimental effect on your filings and business. It can lengthen the critical gap time before recordation and results in costly rework.
It’s critical that document submitters avoid rejections the first time, and this one-hour free webinar will give you an insider’s look at the top five reasons paper document submissions are rejected. Join us to find out what you can do about it, and avoid the sting of rejection.
Join Matt Netta and Jason Staley of CSC® as they discuss:
- The top five rejections for paper submissions
- Tactical recommendations on how to avoid these common rejections
- Tips for better document management
- How CSC eRecording can help reduce rejections
Anu: Hello everyone, and welcome to today's webinar, "Top Five Document Rejection Reasons and How to Avoid Them." My name is Anu Shah, and I will be your moderator. Joining us today are Jason Staley and Matt Netta. 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.
Matt is a national consultant and manager who's dedicated to CSC's eRecording program. He works with leading title underwriters, real estate firms, and lending institutions throughout the country. He also engages with the title underwriters and their counsel members to provide training on the effects and benefits of eRecording in the real estate and title industries.
And with that, let's welcome Jason and Matt.
Jason: Thank you, Anu. Matt, it's good to be with you again. What we're going to go through today is Matt and I are going to talk specifically about the most common rejection reasons and why they happen, and how we can help you avoid those rejections. More importantly, how eRecording is going to support you in that process, to reduce the pains that you see in the recording world. And then Matt's going to take us through a demo and we're going to open up for some question and answer later.
So to kind of describe what we want to talk about is the rejection reasons. We've done some analysis, and we've done some research looking through our data. We've also looked at industry data identifying what are the most common reasons documents get rejected and that plague you and that cause problems for documents to be recorded into a timely manner.
Matt: Then what we'll get into is one of the biggest headaches, which would be incorrect fee calculation or having a check submitted with the recording package that may be a dollar or so off. And then beyond that we'll take a look at the missing legal description, which is another very large, large cause for rejection. And then moving forward, we'll take a look at selecting or delivering the package to an incorrect office or jurisdiction, missing or illegible notary information, missing or incorrect book, page, or instrument numbers on the document, and then finally wrapping up with missing PIN, if that information happened to be missing.
But moving forward, the first rejection reason we'll take a look at is incorrect fees. Now, there's a number of different reasons why this might happen. More often than not, it has to do with maybe an incorrect page calculation, or maybe you had four grantees or five grantees instead of four. Very commonly, recording jurisdictions will allow you up to four grantees or grantors before they'll start charging you extra for them.
But what it really boils down to is ensuring that the correct payment is furnished to the recording jurisdiction every time, and that is exactly what we here at CSC do. No longer will you be required to cut a physical check. We take care of electronically transferring the exact portion or exact amounts of funds to the county upon your documents being recorded. And then on the flip side of that, we provide you documentation at the end of business that will detail everything that was placed on record by the individual jurisdictions that you sent documents to through our system that day, and then follow up with you the following business day to reconcile any balances from the day prior.
So really, we take the entire payment process from one that is very painstaking and very monotonous and could be very costly, because when you're sending in a physical check or sending in physical documents to these jurisdictions, I know that the average recording time that we're seeing post-closing is around 20 days. That is one heck of a gap when you're talking about making sure these documents get on record.
With electronic payment that we handle for you, it ensures that your documents are able to be placed on record as quickly as possible. But with that, we'll move on to our second reason for most common rejections, and Jason, I will kick it back to you for that.
Jason: Thanks, Matt. So the second most common reason that we've found through our analysis has been missing legal descriptions. As many of you know, the legal description's the defining terms for what that property is. So it's the description of the land, the metes and the bounds, the block and lots survey, those kinds of items.
And one of the issues is, in some cases, it can be a short legal description that's embedded within the document, and then in other times, you'll find a long legal description. And where it becomes difficult is oftentimes those long legals are attached as an appendix or an addendum to the back of a document. So it's treated as an extra page. So if you're not keeping up with your document or paying attention, it's very easy to forget to add those last pages. And so the first thing, and you'll hear us say this multiple times today, is you need to check, check, and check again. Make sure that you have all your documents together.
Now, when you're eFiling, there are times where you'll be working with a jurisdiction that may require you to enter in the legal description for the indexing. This is values that get passed from an eRecording application into the county's recording system. In some cases, counties will ask for that information to be typed in. That does not mean that the legal description is not required. You still need to submit that physical piece. Obviously scan it into the system and submit it electronically, but you'll also need to key it in.
Those moments where there is the indexing, it is a good reminder to, hey, I need to step back, take a peek, and make sure I have all my descriptions. There are tools in there to help you in those cases where you have to index a long legal or even a short legal, where there's lots of information you have to key in. We do have some tools within the application that will help you get that information in a timely fashion where we can actually do some OCR and copy the text off the document and put it into the indexing for you. But again, the most important part is to check, check, and check again. Make sure that all your documents are in order as you scan them and upload those into that application.
Matt, you want to talk to us about incorrect office and jurisdictions?
Matt: Absolutely. Now, this being the third most common rejection reason that we collected from our polls and our surveys and our own data resources. Couple of different reasons again why this may happen. Speaking to just recording jurisdictions across the country, if you were to actually take a look, there's a Washington County in almost every state. There's over 26 plus Jefferson Counties.
Beyond that, you can run into scenarios where there are recording offices within a recording jurisdiction. Case in point, St. Louis County, and then within that the City of St. Louis.
And a third scenario would be in the case of Berkshire County, Massachusetts, where the county themselves has split themselves into a North, Middle, and South region, and each region has their own recording office.
All things to consider when you're actually prepping these documents and getting ready to send them, either through traditional means or through eRecordings.
The benefit to doing this with eRecording though is that when selecting the jurisdiction within our service, you're able to see an actual kind of map outline next to the name of the jurisdiction to ensure that you're selecting the right area. Now, beyond that, it really does kind of fall into this common theme that you're going to be hearing throughout our presentation today of check, check, and re-check.
That being said, if you're unfamiliar with this jurisdiction that you're about to send documents to because maybe you're in another state, or it's just not an area where there's a lot of business for you, it really will benefit you to do an extra couple of searches to make sure that you're accurately sending the documents to the correct area. Again, when you're eRecording, if for whatever reason this were to still be an issue, we have some tools and capabilities within our service to help you ensure that you're selecting the correct jurisdiction. Moreover than that, the jurisdiction that you have selected when eRecording with us, we'll display on a minimum of three screens before you actually send the documents. So this is something that will be constantly in front of your eyes and you'll be able to verify and then re-verify as you go through the process with us.
Now, moving forward to the next reason that you may see for common rejections would actually be missing or illegible notary information. When we get into some of the causes for this, now obviously if it's actually missing from a document, then that was an error that was at closing. Not a whole lot that us or any vendor can do for you at that point other than having to actually get the notary information placed on the document.
But once the document has this information and it has been scanned and you're ready to record it through whatever means you'd like, if it's a poor stamp or if there's poor scan quality or just for whatever reason, maybe a smudge or a fingerprint on the scanner glass that maybe caused it to be obstructed when it was scanned, those are all things that we can correct for you or assist you in correcting when you're using the service. We have tools such as our area selection tool, which I will go over in great detail when I'm actually doing the demonstration, which will allow you to highlight a specific area of a specific page on the document image and adjust the contrast so that it is as legible as possible when it's received by the county.
This is something that we saw a great deal of when eRecording was kind of in its birth. When recording jurisdictions began to receive these documents electronically, there was a very real issue with this notary stamp information. More often than not it had to do with the ink pad running dry and just the stamp not showing up as clearly as it could.
So what we did is we incorporated some image utility tools to give you the ability to adjust these portions of the documents. Not the entire page, not the entire document itself, because when you look at doc origination and your current processes, the majority of the page is going to be fine. It's these handwritten information, a signature, the notary stamp, and so on, that may need a little adjusting.
So we put these tools in place, knowing that the rest of the document will be up to snuff. It's this handwritten information that's done at closing that may need a little tweaking in order to make sure these documents are recorded as quickly as possible.
Other than that, like I said, we can go through a lot more of that during the actual demonstration portion and I'll highlight that specifically. But we're going to kick it back to Jason to talk about some incorrect page numbers or instrument numbers.
Jason: Thanks, Matt. As you saw in our poll that we took with everybody, this was also one of the things that we all agreed on as a common rejection reason. And as you know, many documents have to reference a previously recorded document for it to be legally recorded. And in some cases, it's a missing number or a missing value or an improperly added value.
As mentioned before, it's that paying attention, it's that check, check, check again. And also, how can we avoid it? Same thing. To continue to review it. Now, that being said, some of the jurisdictions we work with have provided some capabilities for us to do what we call simultaneous recordings. So if you think about the times that you've walked up to the recorder's bench to deliver some documents, and you may have two documents that have recorded and the second document has to reference the initial document. At that point, you could add in the book, page, and instrument and have it recorded.
When you go to mail those, sometimes that's a little more difficult to work with. With the eRecording world, as I mentioned, some of the jurisdictions have provided us the ability to do a simultaneous recording. So what you would do is you would submit the documents together in a single package, and then upon the recording of the first document, the county would apply the information to the second document for you. That way you're not having to worry about the book, page, instrument number properly referencing that first document.
So as we advertised this, we talked about doing the top five rejection reasons. I want to throw in a bonus reason, which is missing parcel identification numbers. As you know, the PIN is a unique ID to that particular parcel, and oftentimes when recording documents, that PIN has to be addressed on the document itself so it's referenced when it gets recorded. As mentioned before, paying attention can help you ensure that that information is there. It's a couple seconds to just review the information that's there.
Now, as Matt mentioned, and he's going to show you in the demo, the imaging utility and being able to review your document in the electronic world. One of the things I want to mention right now is we have a new feature that we'll be rolling out early next month for our imaging utility, which will allow you as a user to add an annotation that can be placed on the document and sent off to the jurisdiction.
So for example, say you do fail to add your PIN to the document and you needed to add it to there. Rather than having to re-scan the image back into the system, you would have the capability to add an annotation on the document with the parcel identification number and then pass that off to the jurisdiction at that point. Again, all that little extra review in the eRecording helps you ensure that your documents will be recordable once they arrive at the jurisdiction.
Matt: I wanted to go through just a couple of things that you're going to see with our service that you may not be getting with what you're currently using if you're not currently a CSC subscriber. With our service, you're going to experience fewer clicks start to finish when you're processing and uploading and sending your documents through.
With the framework that we've built our service on, which is a completely Microsoft-based, .NET framework, as opposed to many other frameworks that you may be accustomed to, Java being one of them and so on. I mean, there's just a whole laundry list. You're able to have faster image uploads. You have the ability to use our image utility tools, which lends itself greatly for us being based on the .NET framework.
In addition to that, you'll see faster screen to screen transitions. When you're uploading multi-page documents, you're not going to get that little wheel that sits there and spins for 15, 30, 45 seconds and slows the process down for you. We took an understanding of this workflow that you all deal with on a daily basis, and we wanted to make sure that it is as efficient and as error-free as possible. We understand that this is a workflow that needs to be on and off someone's desk before anybody really knows that it's there.
The ability for you to be able to take your documents, scan them, submit them through our system, and close your gap on the policy from what could conceivably be 20 days through a traditional delivery process, even with FedEx or UPS or what have you, down to a same-day recordation time. Me personally, I've seen recordations as quick as 14 to 19 minutes. On a national average, we're sitting right around the same-day mark. Assuming you are recording your documents or submitting your documents prior to lunch, you have a fairly great expectation of seeing those documents back with some sort of response from the county before the end of business that day.
Anu: And thank you to Jason and Matt for a great session and all of you for joining us. We hope to see you next time.