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Volume 102, 
mid-November 2014

      

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eMortgages Gaining Momentum Despite Compliance Challenges

A growing majority of mortgage industry professionals are either in the process of implementing eMortgage strategies or are planning to do so by the year's end, according to a 2014 industry survey. Xerox's 10th annual "Path To Paperless" report, which surveys executive-level mortgage professionals who perform loan origination, underwriting, closing, archiving and servicing functions, is designed to gauge the industry's transition toward a completely electronic, or eMortgage, loan process. Full implementation of a completely electronic mortgage origination process would include adoption of electronic notarizations.

                

"What we're seeing is continued industry support for paperless processes despite compliance pressures," said Jamie Williamson, sales vice president of Xerox Mortgage Services. "Companies are evaluating and implementing several paperless methods to extend electronic collaboration to all participants in the loan process."

  

One of this year's major findings is a significant increase in how industry professionals are embracing the idea of paperless loan processes. The survey indicates that 84 percent of respondents believe the mortgage industry will be closing over half of all loans as an eMortgage transaction within the next seven years; up from 68 percent holding that belief in 2013. Furthermore, 77 percent of respondents said they considered technology that supports electronic acknowledgments and signatures to be a "very important" attribute. (Read complete article.)

 

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News from PREP Chapters

 

In every edition of the PREP Newsletter, we highlight at least one PREP Chapter and post an abbreviated version of their most recent Chapter Meeting minutes.  You can also see what any of the PREP Chapters are talking about by going to PRIA's PREP Chapters webpage.  


NORTHERN CALIFORNIA PREP:

Co-Chairs:  Government, Frederick Garcia, frederick.garcia@cr.cccounty.us and Business, Chris Stephan, cstephan@splinc.com   

 

The Northern California PREP Chapter met in Alameda County on October 22, 2014. This well attended meeting's agenda included: 1) the California New Law Conference update; 2) the California Recorders Association Conference update; 3) a speaker from Pierson Patterson, LLP discussing Consumer Financial Protection Bureau's eClosing Initiative; 4) a California eRecording update including updates on both the ERDS and G2G programs; 5) a Real Estate Fraud panel with speakers from the State Threat Assessment Center, the Alameda County District Attorney's Office, and the Northern California Regional Intelligence Center; and 6) an update on what is going on at PRIA (Property Records Industry Association).  (Read more documents from this Chapter on PRIA's PREP webpage.) 

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2015 PRIA Winter Symposium Hotel Information Now Available
excerpted from PRIA's In Touch Magazine October 2014 
 

Looking to get a head start on plans for PRIA's 2015 Winter Symposium?  The online hotel reservation site at the Crystal City Marriott, hotel headquarters for the Winter Symposium, is accessible here.

 

The $209 rate this year will include complimentary Internet in all guest rooms. To book via telephone, call 800.228.9290 or 703.413.5500. Make plans early to assure a room at the group rate.

 
       

 

Privacy Policies Going Digital:  The CFPB's Final Rule Ditches Requirement to Distribute Annual Paper Copies
excerpted from Data Privacy Monitor 10/28/14

On October 20, 2014, the Consumer Financial Protection Bureau ("CFPB") announced that it had finalized a rule that alters the way that financial institutions provide privacy policies to their customers. Under the Gramm-Leach-Bliley Act of 1999 ("GLBA"), financial institutions are required under Regulation P to provide their customers with initial and annual notices regarding their privacy policies. The financial institutions are further required to provide notice and an opportunity to opt-out of information sharing where certain categories of customer information are shared with particular types of third parties. The final rule announced by the CFPB seeks to streamline the notification process by permitting financial institutions to post their privacy policies online, rather than providing paper copies annually, if the mandatory opt-out notifications are not required. (Read complete article.)

 

          
New Mandatory California Notary Certificate Wording Takes Effect January 2015
excerpted from National Notary Association Bulletin 11/6/14 

A change to California's mandatory Notary certificate wording for acknowledgments, jurats and proofs of execution takes effect January 1, 2015, and Notaries in the Golden State who do not use the new wording will be out of compliance with state law. Under Chapter 197, Statutes of 2014, the following consumer notification must be included as part of the notarial certificates:

 

"A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document."

 

This notification must appear in a box at the top of the certificate, and it must be legible. The notification seeks to reduce fraud by letting consumers know that the Notary's seal and signature do not authenticate or endorse the contents of a document. The legislation's sponsors wanted to make sure that people unfamiliar with a Notary's duties would not be more inclined to trust a fraudulent document simply because it was notarized. 

 

California Notaries need to keep in mind that they will almost certainly come across documents that do not comply with the new wording requirements. "We know from past experience that it takes a while for changes to California's mandatory certificate wording to filter through to all the agencies, industries and business operations that prepare documents," said Bill Anderson, the NNA's Vice President of Legal Affairs. Anderson said that Notaries encountering documents without the consumer notification will most likely need to attach a loose certificate because there won't be enough room to insert the new wording so that it is legible and in a box. Anderson also noted that county recorders will likely reject notarized documents that do not include the new certificate wording. (Read complete article.)

 

Announcement from PRIA:  New Work Group Project Approved by PRIA Board (November 2014)
 

The PRIA Board of Directors has approved a new work project for the Business Requirements Work Group, under the auspices of the Technology Committee.

 

This project will identify industry best practices for Land Records Management Systems (LRMS), in both the paper and electronic worlds.  The resulting best practices will provide government sector users of LRMS products the ability to define requirements and expectations, and to measure the resulting performance.  For business sector providers, the document will assist in the development and evaluation of their LRMS products.

 

Volunteers are being recruited to work on this new project.  In keeping with PRIA practices, both government and business sector members are needed to assemble a well-rounded working group. Work groups generally meet twice each month for one hour and again at the two annual conferences.  Attendance at the two annual conferences is beneficial but not required. 

 

If this project is of interest to you, please contact the Business Requirements Work Group co-chairs Larry Burtness, Washoe County, Nev.; and Karl Trottnow, First American Title Insurance Co.

 

Milestone Achieved with 1,200 Counties Now eRecording
excerpted from The American Surveyor 11/11/14

A new milestone has been reached in the number of recording jurisdictions that are electronically recording documents. As of November 1, 2014, over 1,200 recording jurisdictions are eRecording enabled, which represents one-third of the nation's 3,600 recording jurisdictions. Now more than 68 percent of the United States population resides in recording jurisdictions that offer electronic recording of documents.

Mark Ladd, Vice President of Regulatory and Industry Affairs at Simplifile, and President of the Property Records Industry Association (PRIA), was elated with this landmark accomplishment. Ladd declared, "PRIA is a standard setting body that promotes and monitors the adoption of eRecording throughout the United States. In the past two years, we have witnessed a significant boost in the number of recording jurisdictions enabling eRecording in an effort to streamline their office workflows and increase both efficiencies and turnaround times for their submitters."

"Between August 2013 and November 2014, the number of counties committing to the eRecording process increased by more than 20 percent," said Washoe County (Nev.) Recorder and PRIA Technology Committee Co-Chair, Larry Burtness. "As the PRIA eRecording standards continue to mature, the number of counties leveraging this technology continues to expand."

"Recording offices aren't the only ones who benefit from eRecording," said Diane Evans, Land Title Guarantee Co. in Denver, and American Land Title Association (ALTA) President. "An important part of improving the consumer experience at the closing table is to ensure documents are recorded efficiently and without delay. Electronic recording helps local title companies address ALTA's Best Practice guidelines which call for timely recording of documents and tracking document rejections and resubmissions." (Read complete article.)

Counties in Minnesota and Pennsylvania Now eRecording Through CSC
excerpted from CSC eRecording Solutions 11/7/14

Goodhue County, MN and Bedford County, PA are now electronically recording real estate documents through Corporation Service Company� (CSC�). Any document submitter with a computer, Internet connection and scanner/printer can now eRecord real estate documents in these jurisdictions through CSC.  (Read complete article.) 

 
ALTA NEWS:  ALTA Joins with Chamber of Commerce to Oppose EPA's 'Waters of the U.S.' Rule     

excerpted from the November 3, 2014 ALTA Advocacy Update by Michelle Korsmo, ALTA CEO 

 

Last week, ALTA joined over 100 organizations from 35 states in a comment letter to the Environmental Protection Agency urging them to withdraw their proposed rule defining which bodies of water are subject to the Clean Water Act. The EPA proposed the new definition of which bodies of water constitutes 'Waters of the United States' back in March.

The rule was intended to clarify which bodies of water are subject to EPA regulations under the Clean Water Act. There is significant uncertainty regarding which streams and wetlands are covered under the current definition. However, many believe that the new rule goes beyond clarification and would lead to more bodies of water being covered under the regulations, making land adjoining those bodies of water more costly to develop.

 

Earlier this year, the House passed legislation 262-152 to prohibit the EPA from finalizing the rule. If you have any questions please contact ALTA's legislative and regulatory counsel, Steve Gottheim, at steve@alta.org or 202-261-2943. 

 

Links to National News

Repeat Foreclosure Percentage Increases to Tie All-Time High
DS News | November 11, 2014
The percentage of September's foreclosure starts that were repeat foreclosures rose by two percentage points month-over-month to account for 53 percent of foreclosure starts, tying the highest percentage for a single month, according to Black Knight Financial Services' September 2014 Mortgage Monitor.

Consumer Confidence Growing, But Attitudes Toward Housing Remain Mixed 
DS News | November 7, 2014
Forty percent of American consumers polled in Fannie Mae's latest National Housing Survey said they believe the economy is on the right track at the moment, flat from September's survey but up 13 percentage points over the past year.

Report: Housing Market Not Completely Back, But Getting Closer
DS News | November 7, 2014
The National Association of Home Builders (NAHB) released its Q3 Leading Markets Index (LMI) report, and the verdict is: national housing recovery is getting there, slowly but surely.

Realtors Forecast More Home Sales but Higher Mortgage Costs in 2015 
The Dallas Morning News | November 7, 2014
The prospect of higher mortgage rates in 2015 won't put the brakes on home sales, Realtors hope, provided that lenders loosen their purse strings.

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CONTENT DISCLAIMER
  
The views and opinions expressed in the media, articles, comments, or links in this publication are those of the speakers or authors and do not necessarily reflect or represent the views and opinions held by the Property Records Industry Association (PRIA) or its members.  PRIA does not warrant the accuracy, timeliness or completeness of the information contained in this publication. If you have a complaint about something you have found in this publication, please contact PRIA by email at info@pria.us.
FAIR USE NOTICE
 
This publication may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. PRIA believes this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material in this publication is distributed without profit, to those who have expressed a prior interest in such information, for comment and nonprofit educational purposes.
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If you'd like to advertise in this newsletter please contact: stevie@pria.us
In This Issue
eMortgages Gaining Momentum Despite Compliance Challenges
News from PREP Chapters - Northern California
2015 PRIA Winter Symposium Hotel Information Now Available
Privacy Policies Going Digital
New Mandatory California Notary Certificate Wording Takes Effect
Announcement from PRIA
Milestone Achieved with 1,200 Counties Now eRecording
Counties in MN and PA now eRecording Through CSC
ALTA News
Links to National News
Advertise in PRIA's Newsletters
PREP Blog and PREP LinkedIn
Examples of PRIA's Products 
  
 
  
                    
PREP Chapter Meetings
          
    November - January 2015   
  

      Central Florida 

      Metro Minnesota 

      North Central Texas

      SE Minnesota

      SW Minnesota 

      Central Texas

      Central Lakes MN

      Colorado

      Idaho 

      Washington

                   

          


Contact Information

Do you have questions or suggestions for this newsletter or any updated information on co-chairs, emails, phone numbers, etc. please contact us:
Carolyn Ableman
PREP Coordinator

Mark Monacelli
PREP Committee Government Co-Chair, Recorder
St Louis County, Minnesota

Madeleine Nagy

PREP Committee Business

Co-Chair, ALTA

State Government Affairs

 

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