Servicers Stand to Benefit from Electronic Recording Initiatives.(Brief Article)

There is great value - for lenders, borrower and investors - in originating fully electronic mortgages. No one argues this. The current question relates to how soon this can become a reality. While some argue that county recorders will never catch up with the technology wave, others argue that servicing transfers and lien releases sent to the courthouse by servicers will push the recorders ahead.

Chris Weinstock, counsel for Countrywide Home Loans, told the audience at the recent fifth annual Mortgage Technology conference here, that Countrywide's all-electronic mortgage pilot had proven very successful. While the shipping cost savings were not sufficient to finance the technology investment, Mr. Weinstock said that there were other benefits that would guarantee that his company would continue to work with industry groups on standards that would make the AE mortgage a reality.

One of the problems, he said, was in the county recorder's office. "Many county recorders are not ready to e-record," he told the audience. "We as lenders have to have the recording information back from the county recorder ... (for) selling the loan into the secondary market. This could take years."

He did point out that if between 60 and 200 of the most populated counties in the nation bought into the technology, 38% to 70% of the mortgage business would be covered. But that will take time, he said.

"Standardizing the e-recording process is critical," Mr. Weinstock said. "This will be very difficult, as many recorders have already invested in systems to manage their workflow."

But some recorders are saying that they are willing, if not ready, to move ahead.

According to executives at Ingeo, one of a number of mortgage technology firms working with county recorders to automate their systems, the drive to adopt technology has little to do with the dream of the all-electronic mortgage. Rather, recorders would like tools to help them deal with the documents ...