Recorders Business Case

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Recorders Business Case

• A National Perspective
• Mark A. Monacelli
• President, Property Records Industry Association

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Stress Test
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(No Transcript)
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In the good ol days there was one type of
mortgage
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Types of Mortgages Today!

• 30,20,15 10 Fixed Rate
• 30,20,15 10 Fixed Rate with a 2/1 Buy Down
• 1 Year Adjustable
• 1 Year Convertible Arm
• 2/1 Arm
• 3/1 Arm
• 5/1 Arm
• 7/1 Arm
• 7/1 Convertible

• 5/25 Balloon
• 7/23 Balloon
• 7/23 Balloon with 2/1 Buy down
• Home Equity
• Land Purchase Loans
• 97 Community Homebuyer
• Construction
• Interest Only
• Plus Many More

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U.S. Mortgage Activity
trillion
(Est.)
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Document Rejection Costs

• 2002 - 102 million transactions recorded
• Average rejection rate 12.5
• 50 per rejection
• 40 Private Sector 10 Public Sector
• 637,500,000
• Cost to one PRIA Member
• 1.03 per document or 634,140 per year

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In order to sell a loan there are 4 Requirements

• Note
• HUD 1 Statement
• Title Insurance Policy
• Recorded Mortgage

Renewal
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Government must do more with less
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While technology creates new opportunities,
technology also creates new challenges!
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Challenges

• Posting information on the Internet
• Data Document Images
• Security
• Level of States involvement
• Adherence and willingness to adopt Standards
• Rogue Public Officials
• Rogue Vendors
• Education

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Provides an opportunity to
develop standards and create alliances
Electronic Evolution
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Benefits of Paper Versus the Electronic World

• Prepare Documents 5-10 Min.
• Execute/Calculate Fees 5 Min.
• Delivery ½ to 5 Days
• Recorder Processing ½ to 30 Days
• Return Delivery ½ to 5 Days
• Enter Recorded Information 1/2 to 21 Days

• Prepare Documents 15 Seconds
• Execute/Calculate Fees 5 Sec.
• Delivery 5 Seconds
• Recorder Processing 10 Seconds
• Return Delivery 5 Seconds
• Enter Recorded Information
• 5 Seconds

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eRecording Jurisdictions
Temporarily On Hold
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eRecording Today

• eRecording of Real Estate Documents
• satisfactions or lien releases majority of
  todays counties
• closing docs no more than 12 counties
• G2G state and county tax liens and releases
• other real estate docs, e.g., assignments court
  documents affecting land records, e.g., divorce
  decrees, judgements only in a few of counties

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Tunnel Vision
Develop a Level of Understanding
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We Are In This Together!
Recorders
Lenders
Title
Servicing
Underwriting
Secondary Market
Escrow
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• Mark A. Monacelli
• PRIA President
• monacellim_at_co.st-louis.mn.us
• 218.726.2675