The mortgage industry faces a liability that threatens both the accuracy of public record and the ability to comply with new federal regulations, and going electronic can solve some of these issues, claims an industry expert from Nationwide Title Clearing.
Myron Finley, chief legal officer for the Palm Harbor, Fla.-based company, a privately owned research and document-processing service provider to the residential mortgage industry, explains the importance of e-recording in particular.
"A significant amount of the liability in the industry exists in the gap between the closing of the loan and recording of the documents," explains Finley. "That's why e-recording is so important in our industry. In our increasingly digital society, an entirely paperless process is the next logical step in ensuring accuracy, as well as compliance."
Finley says e-recording differs from traditional recording methods because the original documents never leave one's possession; they are scanned and submitted within minutes and are then returned electronically immediately after recording, making processing land records and property documents simple, fast and secure. Documents can be submitted 24/7, and the process is cost-effective, reducing paperwork, he adds.