What Every Submitter and Recorder Needs to Know
Since being first-to-market in electronic document recording nearly two decades ago, CSC eRecording has been an industry leader for two reasons: reliability and efficiency. By removing paper from the submitting and recording process, eRecording also removes the issues associated with having to hand deliver documents from lenders, title companies, and attorneys to the county recorder's office.
Furthermore, CSC's 120-year history of unrivaled customer service offers clients the peace of mind they require in order to focus on their business. With the innovative technology our platform offers and an efficient process focused on reducing risk and saving time and money, eRecording is the most reliable form of recording documents into public record.
We invite you to view our recorded webinar, eRecording Reliability: What Every Submitter and Recorder Needs to Know, and see why CSC eRecording allows you to do more, save time, incur less risk and pay less. This event will cover our innovative technology and unparalleled customer support, which are two of the main reasons we've been a leader in the electronic document recording since its inception
Annie: Hello everyone, and welcome to today's webinar, E-recording Reliability: What Every Submitter and Recorder Needs to Know. My name is Annie Triboletti and I will be your moderator.
Joining us today are Kevin Kinderman and Jessica Ripley. Kevin is the director of sales for CSC's real estate business unit. Kevin is based in Wilmington, Delaware and manages our nationwide eRecording efforts for government recording offices and document submitters. Jessica is the national eRecording account manager for CSC. She specializes in new client acquisition, focusing on transitioning submitters from a traditional paper recording process to electronic recording.
And with that, let's welcome Jessica and Kevin.
Kevin: Great. Thank you, Annie.
Jessica: Okay. So I'm going to give you a little background on CSC. We've been in business since 1899. We are a leader for business, legal and financial services. We're a privately held company with over 2,500 employees in more than a dozen countries and in all 50 states. We do business with 90% of Fortune 500 companies and we've been a top workplace six years running.
And here we'll take a look at some of the services CSC offers to companies small and large. As you can see from the list of services in the real estate division, aside from eRecording, we offer paper document recording as well as full-service document recording. CSC also offers registered agent, corporate filings and UCC services, to name a few. We are a one-stop shop and are truly the business behind the business.
All right. So today I will or I'll talk a little bit about our agenda. We'll review the history of eRecordings, what to look for in suppliers and vendors, and the reliability of eRecording. And we'll even show you a quick demo at the end.
Kevin: So I'm going to talk a bit about the early recording methods and you'll see some dates referenced here, but prior to the mid-16th century, and we won't spend too much time on this, but the methods were really limited to human memory and you can imagine the disputes and arguments and fights and what other things may have occurred when we're only left to our own memory. But then here in 1536 there was the Statute of Enrollment and that, basically, provided some more basis for some more modern paper recording or paper-based system. And then even in 1677, there was this Statute of Frauds and it, basically, it influenced the development of recording systems specifically in England and in the US.
Then, I guess, here for more than three centuries, we had this version of a paper dominant recording method or process. And then here in the late 20th century, electronic technology became available and that's what gave us the ability to migrate a paper process into an electronic process. So paper recording is becoming obsolete in some places because we've seen the stats. Some counties are reporting an 80% eRecording rate of everything they do, but we also see that there's plenty of jurisdictions that have not implemented eRecording yet. So there's opportunity for us to push it that way and, hopefully, paper becomes obsolete in some regards, anyway.
So this migration from paper to electronic, the first thing that really triggered it here, and we'll talk about some uniform acts that occurred, but the technology became available. Real estate law needed to, you know, be modified or adjusted to support the technology that became available. And the very first thing that happened was in 1999 it was with the Uniform Electronic Transactions Act that was passed at the federal level. This, basically, permitted electronic transactions to occur and that they would hold the same weight and enforceability as a paper contract.
And then, in addition to that, the following year in 2000, the Electronic Signatures in Global and National Commerce Act passed, ESIGN. And that was something that occurred that equated an electronic signature to again hold the same weight and validity as a web signature. So it permitted organizations and parties to have transactions electronically but also to sign the agreements, sign the documents electronically and make it official that way.
And then here you'll see a bit of an example in this, sort of, shows the few-decade-old process now. You know, it's been close to 20 full years of electronic recording and how it's become so reliable. This is the very first document that was commercially recorded at Lancaster County. It was in the year 2002 and, you know, here it was this mortgage satisfaction that was recorded, but we have the evidence CSC was the first company to participate in this, sort of, electronic recording action and it goes back almost 20 years ago. So kind of a neat reference that we get to use, but here's the proof now you can actually see that this occurred year 2002 and it was done so electronically.
So we'll transition to Jess, and I think Jessica is going to walk us through a bit of the life cycle of the recording process.
Jessica: Absolutely. All right. So here you can see there are two paths for e-recording. There's the frontend, what the submitters do, and the backend is what the county recorders do. So if we look at the frontend, basically, first you create the shell of the package or the electronic envelope. You'll scan, upload the documents, enter any indexing or county requirements. An example of this would be entering the consideration amount for a fee. After this you'll submit the package with click of the mouse.
On the backend or the county side of things, they receive and review the document, they calculate the fees, they'll endorse or stamp the documents, then scan the image into their system and electronically send the submitter back all the recording info, including the image. Now, 80% of the entire U.S population live in a county that has adopted eRecording. Some counties throughout the country have reported that more than 75% of the documents they receive are through electronic recording. So this is fantastic. Look at how far we've come.
All right. Now, we'll look at the values of e-recording and there's so many. But, first, it's affordable, you know, no more astronomical daily or monthly FedEx bills or paying your runner or an employee to physically take the documents down to the county. Thinks about all the little or hidden fees that are involved, those add up. The time it takes for them to drive, miles, the gas, the mileage you're paying, you know, anywhere from $5 to $25 for parking, the speed you're getting the documents to the county and put on record in the same day. You'll reduce rejection.
Our system has the county requirements built-in, so it tells the submitter exactly what information to input. You can respond faster to rejection. You can set up to receive email notification alerting you when a document has rejected. So you receive this notification, you literally log into the platform, you fix the rejection and you resubmit for recording. And this is, literally, done in a matter of minutes.
Then the security. You know, you improve document security because you maintain possession of the documents the entire time. You never know what could happen to those documents once they leave your office if you use the courier or, you know, if they're out of your hand. Think about USPS we've all heard horror stories of packages saying they and they were delivered but not on your doorstep.
And then payment errors, you will never, and I repeat, never have a document get rejected by the county because the payment was incorrect. That's huge. And, you know, lastly, you improve the liability and productivity.
So keep in mind, when eRecording, you're able to submit documents 24/7. A runner or a courier, they can only get into the recorder's office when the counties doors are open. Now, what happens when traffic causes your couriers to get there one minute late? Do you think the county is going to unlock the doors, bring in you so they can record your documents? Probably not. The courier will then have to go back to the county the next day. And don't forget that's an extra trip or run they'll tack on your bill. You know, it's not your fault, it's out of your hands, but you're the one who has to pay for it in the end. So start eRecording, take matters into your own hands.
Kevin: If things aren't done properly. So we had a little stat here and I think it was, gosh, I think it was 59 disasters were reported by FEMA in 2018 and this is one of the things where, again, weather sometimes causes some wild things to happen and that has impacts on delivery or how documents get to the jurisdictions and those things are outside of our control. We've even heard from some document submitters in Hawaii that they have to overnight by plane the documents to, you know, the island that has the bureau of conveyances, which is the recording jurisdiction for all five islands and that can cause delays from them wanting to get documents recorded at certain times.
So this is just an example of a variety of weather-related things happen, which can disrupt or interfere or cause a conflict of getting documents to the jurisdiction in some of the more traditional ways that we've done it. And with an electronic recording process, we remove those things that we don't have control of. We remove them from the process, and we're able to have a little more security in the recording process.
And it's on the first point here is it improves document security. And, as I mentioned a minute ago, it seems like there's always a horror story and this isn't a scare or a fear-based thing, it's a reality. And sometimes we don't know what the cause of it is, but we've completed a transaction, we've submitted this, you know, deed and mortgage to be recorded and six weeks pass through, you know, it being submitted by mail or however else and the jurisdiction doesn't have any record of it and we don't know.
So that's the beauty of electronic recording and how it becomes so reliable is everything within our system is date and time stamped. There's a log of what's occurred. You're getting notices and status updates of when it was received by the jurisdiction, when it was recorded or rejected.
It's also important to note that the things that our system permits are approved through statutory, kind of, regulations, right? We abide by state laws and that provides comfort from our document submitters that, look, this is in line with what each state and even county permits.
And then as Jessica mentioned earlier, the big value is, we have even a story, is it gets documents recorded so much faster. New York was state number 42 to implement an electronic signature act, right, or to adopt an electronic recording process where it permitted counties to utilize the technology if they wanted. And there was a great deal of reservation when it came to electronic recording.
So I was in the office of a client of ours helping them to get comfortable with the process and they submitted their first package and they were, you know, friendly with the recording office. So, because they were a bit cautious about the new process, they called jurisdiction, got the clerk on the phone and said, "Did you receive this?" And they confirmed it, "All is well. We received it," and the entire package was created and recorded in nine minutes, in nine minutes. It was amazing.
So we really see how it can shorten the gap with the title insurance policies. It can help the lenders secure first lien position because it gets the doc recorded there. And a variety of other reasons with statutory requirements where borrowers need to be notified in so many days after the loan is paid off. This provides ways to ensure that documents are recorded properly and you can get word to your clients even faster.
And then, obviously, we have disaster recovery processes in place. We're even SOC 2 audited. So we use an outside firm that audits and reviews and lets us know that our systems and security processes abide by and meet the greatest level of standard. We work with seven of the top 10 financial institutions. So we want to make sure we flex our muscle a little bit here on this is an established, very reliable process that some of the largest organizations in the country use and have been using for quite a long time.
Jessica: All right. Now, why users prefer the reliability of eRecording.
Kevin: Okay. So this is where we have some specific feedback even from some of our clients, and we felt like this was important to share because we can talk about the reliability of eRecording, but when somebody else, who is more of a neutral party, emphasizes the reliability of it and we have some testimonials of it, I think it's even more important for others to recognize as they consider the process too.
Jessica: Absolutely. And all three of these quotes, they all have something in common. They mention the time and money savings and how eRecording is much more of an efficient and reliable practice.
Now, a few things to consider when you're selecting an e-recording provider, you know, you want to look for a service with the lowest projection rate. You want to look at the speed of the system. You want to look at, you know, how many clicks do I have to, you know . . . fewer clicks means less work to get the job done.
Image correction tools. Think about the issues you currently have with your documents. Does the platform have tools that will help or improve these issues? And responsive customer service. You know, and I think we all know how important customer service is these days, and when you reach out to customer support and actually talk to a person, it goes a long way.
All right. Now, I want to give you some of the values of eRecording with CSC. So we have the lowest projection rate in the industry. There's less vendor risk as Kevin mentioned before. Because we worked with 7 of the top 10 financial institutions in the nation, you can imagine the security and compliance measures we have to be in line with. We're in top-notch shape when it comes to security.
We front all the county fees. So no more cutting checks on your end or getting rejections because your check amount was off. And because our system is built on the .net framework, that means we have faster processing times, making your daily workflow more efficient. CSC was the very first to market electronic recording. So we've literally been in the game as long as the game has been around.
Kevin: All right. So we know it's a reality too that as much as 80% of the country, right, lives within a county that has already implemented eRecording. There's still plenty of counties out there that have not. It could be a resource thing. There's been some, I guess, some new elected officials that just aren't comfortable with the process yet and they need to be in the role a bit longer. But we acknowledge this and we don't want to, sort of, bash any paper delivery process. It's necessary. It will likely always be necessary and we'll have a need to do that, and we acknowledge that.
But CSC also provides paper reporting services nationally. So we know that in, let's see, Delaware County, Pennsylvania, right, they're, sort of, a neighboring county to us. They have not implemented eRecording, but all the surrounding counties around them have. And, for that reason, if somebody here is in Wilmington and, you know, wants to implement eRecording they can, but they'll still have a need for paper reporting in maybe some other neighboring jurisdictions.
CSC provide services and a lot of times like CSC for that reason, just that we're a one-stop shop, you know, they can use us for eRecording everywhere that they're able to, but they're also able to utilize the same vendor for recording documents the traditional paper way. Some of the things that we do within this process is to track the status of it, which provides some comfort. We also place the recorded documents back in an application or platform that allows you to recover that information once we receive it back from the county.
And then even the additional benefits to this is CSC manages the entire process for you rather than it being something you have to carve out unique processes for. We have open payment relationships with many of the jurisdictions. So we all know that sometimes our check may be written for a few pennies off the correct amount that your county wants to charge, and some of these relationships or arrangements with the counties give us the flexibility to not have the document rejected when that happens.
CSC also fronts or advances all the recording fees on behalf of our clients. So you don't have to fuss around with requesting a check, cutting a check, mailing the whole package. We manage all of that for you and ensure that it gets recorded as fast as it can. At the end of the month is when we'll provide us an invoice for all of those jurisdiction recording fees, but this is what allows people to say, "This is beautiful. I need to utilize a company to take care of these recording processes for me, whether it be eRecording or paper recording."