Mortgage assignment volume is exploding as lenders face a record number of foreclosures this year, with estimates reaching 1.2 million by the end of 2011. In August alone, the pace of foreclosures increased 7% over the previous month. Mortgage servicers need to establish a clean chain of title for delinquent properties. Ensuring successful foreclosure proceedings by publicly documenting the owner of record and safeguarding the right to foreclose is now a necessary priority for lenders.
As assignment volume continues to escalate, servicers are struggling to overcome recording backlogs that have quickly mounted. Backlogs delay loss mitigation efforts, increase costs and exacerbate legal exposure. The right resources are necessary to ensure the right results in timely recording mortgage assignments, and achieving loss mitigation goals.
Rekon software is the right resource to handle the assignment document needs of servicers and lenders. It quickly and accurately creates assignments in more than 3,600 recording districts, including hundreds of land court districts across all 50 states. Rekon software maintains up-to-date data on the changing regulations, requirements and recording fees for preparing assignment and lien release documents in every recording district around the country. For Rekon clients, there is no need to designate full-time regional data specialists, maintain thousands of complex forms or stay on top of the numerous shifting county recording requirements and fees. No other software is as comprehensive and foolproof as Rekon. It asks only the required questions for preparing specific assignments anywhere in the country.
Rekon software is the leading choice of servicers for the preparation and management of lien releases and assignment portfolios. Seven of the top 10 servicers in the nation are Rekon users. Recently, one of the top mortgage lenders in the nation, already a Rekon software customer, installed the latest edition of the software in order to avoid recording backlogs in its rapidly increasing volume of mortgage assignments. The top-tier lender completed more than 125,000 assignments in the first full month after installing the new edition of the Rekon software.
Rekon alleviates the difficulty for servicers in managing complex portfolios of multiple investors with different procedures and requirements, shortening the process to complete an assignment. The software system prepares and processes assignment and lien release documents based on specific investor requirements.
Servicers can also automatically download pools of loans into the Rekon software assignment module. The software automatically processes assignments in bulk without any need for human intervention. With the push of a button, Rekon can automatically produce assignments for entire loan portfolios, allowing resources to be spent on quality control and increased volume.
Furthermore, Rekon software provides a permanent tracking history for every assignment document of lenders and servicers. They can review the exact dates when the loan file was received, when data was entered, and when the assignment was prepared, printed, signed and sent for recording. Once recorded, Rekon can store the recorded date and recording data, providing an up-to-date status on loans in lenders' and servicers' portfolios.
Rekon software is easy to install and seamlessly integrates with any servicing software system of choice. Electronic data flows seamlessly into, and out of, the Rekon software. For the aforementioned top-tier lender, the delivery, installation, testing and go-live process for the Rekon software was fast, easy and uncomplicated, taking little more than a month. Rekon enhances document preparation productivity by minimizing the re-keying of data when it is integrated with a servicing system. The ability to receive loan data directly from various servicing platforms lowers any chances for typographical errors.
Best of all, Rekon can electronically record servicers' assignments in more than 650 recording districts in the 36 states that offer eRecording for mortgage documents. With its eRecording capabilities, Rekon software can dramatically reduce manual assignments and assignment expenses, increasing efficiency and significantly lowering costs. A recent lender analysis shows that up to 45% of servicers' assignment volume, depending on their loan portfolios, could be transmitted electronically.
And that's just today. New eRecording jurisdictions are constantly coming online, expanding what is already a vast footprint. eRecording is gaining momentum at the county government level and among servicers and lenders around the country as they incorporate electronic recording into their business models. Local recording offices are upgrading their systems to meet the growing demand for greater automation. The end goal of eRecording is for the lender and servicer to be able to receive notification to generate a document, verify that all the necessary information is available and included, and then transmit the document electronically to the recording office directly.
Rekon has pioneered the eRecording of mortgage documents, transmitting assignments directly to a county to record within minutes. eRecording is more efficient than paper, and requires less work at all steps of the process. Rekon clients can expect to see increased productivity and achieve significant cost savings in material and personnel. eRecording provides immediate security to borrowers and servicers.
Customers using Rekon's eRecording solution have processed and recorded mortgage documents within 48 hours of payoff or settlement, compared to weeks or months when using a manual, paper-based system. Recording data is returned almost instantly to the Rekon software, allowing clients to stay up to date on the status of their portfolios, virtually in real time. Unlike stand-alone systems, the Rekon software enables lenders and servicers to seamlessly integrate traditional paper-based processing with electronic recording into one workflow solution.
For lenders and servicers, Rekon software is the fast, easy and efficient way to generate assignments, and it enables companies to:
- quickly establish the chain of title,
- reduce the legal exposure to recording errors,
- save time and directly control assignment preparation costs,
- dramatically reduce manual assignments with electronic automation, and
- generate real-time assignment reports with the push of a button.
Rekon software consistently and accurately handles the growing volume of mortgage assignments facing servicers and lenders of all sizes. They can establish direct control over their assignment preparation processes and costs. With Rekon, lenders and servicers can avoid any backlog of assignments, safeguard their right to foreclose, and sell or transfer loans, including pools of loans, with clear and clean titles. Rekon is the one-stop solution for preparing and recording assignment documents either electronically or by paper.
Marshall Taylor is a freelance writer based in Annapolis, Md., and an account director with Strategic Vantage, a marketing and public relations agency.