In today’s highly-regulated environment, problems with document tracking or flow can have a profoundly negative impact on a lender’s ability to protect loan assets, which can inevitably hurt the homeowner
Palm Harbor, FL (PRWEB) April 08, 2013
Banks and other financial institutions are in the midst of restructuring how they do business, in light of hundreds of pending rules that will affect everything from how they trade out their own accounts to how they service mortgages (1). To aid the mortgage lending/servicing industry in continually improving documentation processes to provide transparency, Nationwide Title Clearing, Inc. (NTC), a leading service provider to the mortgage industry, recently released a white paper to its industry that provides solutions and tools on how to avoid noncompliance or loss of trailing documents. The news of the white paper received attention by National Mortgage News, DS News and other mortgage industry publications.
Final trailing documents typically comprise two or sometimes three important documents, a) the original recorded security instrument (such as the mortgage or deed of trust), b) the lender’s original title policy, and c) a mortgage assignment, if applicable. These documents typically “trail” behind the closing of a new mortgage origination because the title policy is not issued until the security instrument is officially recorded at the county recording jurisdiction. Ensuring this process is completed timely and accurately protects everyone involved in the transaction. Outstanding trailing documents have caused serious problems for certain banks, costing them time and money, and leaving both themselves and homeowners exposed to risk.
Joellen Raiti, a Nationwide Title Clearing Vice President, penned the white paper, titled Best Practices for Trailing Documents, to give insight on how to score a trailing document process and methods to improve efficiency. The white paper supplies mortgage servicers with the means to evaluate their trailing document process regularly, helping to minimize unwanted attention from regulators and protect their interests.
Lending/service providers have to supply these documents to their investors within a certain period of time, or face penalties imposed by the investor. If the mortgage never gets recorded, lenders may face problems with their lien position on the property. A large deterrent is the time and money it takes to track down these documents or retrieve copies if the originals never arrive after recording. However, NTC has given mortgage lenders and servicers a solution, and NTC’s white paper details the optimum trailing document process, as well as providing answers to important questions about the process.
NTC’s white paper for mortgage lender/servicer provides intelligence on which parts of the process is the most susceptible to risk. Improvement on this process ultimately has an impact on American homeowners: (1) mortgages remain affordable, without higher points and fees to make up for lender’s recording problems; and (2) there is clear documentation recorded in our nation’s land records.
“In today’s highly-regulated environment, problems with document tracking or flow can have a profoundly negative impact on a lender’s ability to protect loan assets, which can inevitably hurt the homeowner,” stated Raiti. “Evaluating the trailing documents process regularly is a best practice that will help keep final trailing documents safe and properly tracked.”
NTC says it’s been perfecting its trailing document tracking and follow-up processes for years, and has created a unique system for tracking and maintaining the different state and county document requirements for more than 3,600 recording jurisdictions nationwide, including monitoring the average recording turn-around times by jurisdiction. The company’s advancement of the mortgage assignment chain verification process, info.nwtc.com/perfectchain-assignment-verification [PerfectChain __title__ ]℠, is another means by which NTC has been developing industry best practices in order to help legislators, mortgage lenders, servicers and ultimately homeowners gain certainty and confidence.
NTC’s business process is based on an eight-part quality control review that is done prior to the recording of accurate post-closing mortgage documents. Company officials say the company’s scoring information for servicers ensures that land records are up-to-date and accurate.
For more information on NTC, visit http://www.nwtc.com.
For details on the recent white paper released to the industry on the document trailing process, visit info.nwtc.com/white-paper-scoring-your-trailing-document-process--tips-for-efficiency.
About Nationwide Title Clearing, Inc.
Based in Palm Harbor, Florida and founded in 1991, Nationwide Title Clearing, Inc. (NTC) is a privately-owned leading service provider to the residential mortgage industry, serving mortgage lenders, servicers and investors, including eight of the top 10 residential mortgage servicers in the country. NTC earned the position of #2,730 on the 2012 Inc. 5000 list of fastest-growing private companies in America, ranking #36 in Tampa and #46 in the real estate industry. The company’s land records and document experts are able to track and fulfill county document requirements for close to 3,600 recording jurisdictions nationwide. NTC specializes in providing land records research, lien release services, assignment services, final document tracking, document retrieval and other custom business solutions. For more information, visit the company’s website at http://www.nwtc.com.
(1)Beeson, Ed. “Obama Second-term Leaves Banks Learning to Live with Strict New Regulation.” Nj.com. N.p., 11 Nov. 2012. Web. 25 Mar. 2013. nj.com/business/index.ssf/2012/11/post_238.html.