eRecording

The 10 Myths of eRecording

At Indecomm, we maintain an emphasis on eRecording as the only practical solution to the recording failures of the Great Recession.

Since the publication of the URPERA Enactment and eRecording Standards by the Property Records Industry Association in January 2006, eRecording has been slow to catch on in the country. To date, only Arizona and Colorado offer 100 percent eRecording, but the states of South Dakota, Mississippi, Kentucky, West Virginia, Rhode Island, Vermont and surprisingly New York do not offer eRecording.

The source of the eRecording inertia lies in several critical myths about eRecording.

Myth 1:

"Funding is better spent clearing up the backlog versus eRecording."

Reality

There is a broad belief among the recording industry that funding for eRecording, even if it becomes available, would be more usefully employed in digitizing the current backlog. This is a myth because the efficiencies of eRecording future documents will be lost and the backlog is unlikely to be resolved because these are manual processes as well. The manual processes which created the backlog will remain in place.

Myth 2:

"eRecording requires workarounds for items such as mortgage registrations tax

Reality

eRecording, if properly done, addresses all of the facets of a jurisdiction’s requirements. Workarounds are not necessary since they can be embedded in the eRecording process.

Myth 3:

"eRecording requires extensive staff training."

Reality

In the early days of eRecording this may have been true but changes in technology and the society as a whole have made eRecording easy. Optical scanners are now highly sensitive and reliable as well as cheap and easy to use. In addition to that, computers are ubiquitous in the society at large and it would be typical for the staff to have any number of them at home.

Myth 4:

"The Internet is unreliable and eRecording will bring the county to a halt."

Reality

All systems, including the telephone, have their weak moments. We at Indecomm believe that using eRecording through InteleDoc Direct™ is effective choice but the capacity for mail-away should be preserved as a backup. This is a simple process through our recording website.

Myth 5:

"The initial set up and high installation costs make eRecording prohibitive."

Reality

We at Indecomm resolve this problem by making all eRecording costs through our systems to be on a per item basis. As a result, eRecording with Indecomm is a variable cost, not a fixed cost.

Myth 6:

"The documents and signatures are not original so they are not official."

Reality

States authorizing eRecording have adopted legislation, making electronic submissions official documents.

Myth 7:

"eRecording systems can be hacked and are not reliable."

Reality

Every eRecording jurisdiction should follow the PRIA guidelines for properly securing electronically recorded data. First, threats need to be identified, followed by the adoption of policies and procedures; then a mitigation of any actual damage needs to occur. eRecording in this sense is no more vulnerable than physical recording, which also requires a disaster recovery program. If a courthouse catches fire, records still need to be protected.

Myth 8:

"Vendors with the largest number of counties are the best choice."

Reality

This is a quality versus quantity issue. It is important the vendor selected has sufficient scale and expertise, but that is not necessarily an issue of the number of jurisdictions covered. Other parameters are more important. For example, what is the company’s first time acceptance rate? How long has the company been in the mortgage recording business? Can they support your entire operations, including mail-away solutions?

Myth 9:

"eRecording only requires an icon on my desktop."

Reality

This may be true from the user’s perspective, but the icon has to bring up a broad knowledge base, including specific details like fees and deadlines for each county. Systems and mortgage experts at Indecomm maintain and update our extensive knowledge bases so that you don’t have to.

Myth 10:

"eRecording is fully automated and removes the need for further support."

Reality

Anyone who has ever used software understands that system support is always a requirement. No computer product can ever anticipate all the variation in user needs. Nor should a vendor assume that it has managed to anticipate all the possible configuration problems on the users’ end. Indecomm is a complete solution and that includes a phone number and access to a help desk and subject matter experts.