Recording Of US Electronic Mortgages Is On The Way

The goal of electronic recording, a fundamental piece of the electronic mortgage, is coming within reach. A critical step in the road to e-mortgages is the e-recording and notarization standards being developed by the Public Records Industry Association (PRIA). Building on XML-based standards devised by the Mortgage Industry Standards Maintenance Organization (MISMO), the e-recording standards establish common data architecture and tags that allow title companies, closing agents and lenders to submit electronic transactions to county recorders. PRIA finished its first version, 1.2, over a year ago and expects to send the second version, 2.0, to MISMO's Core Data Workgroup for review this fall, explains Carmen D. Bramante, principal of cdb consultancy LLC and co-chairman of PRIA's Technology Committee.
Both the public and private sectors are pushing toward e-mortgages, says Harry Gardner, senior director of industry technology for the Mortgage Bankers Association (MBA). Technology vendors are rolling out e-closing products. And although lenders are releasing few public announcements, internal development of e-mortgages is active. Out of over 3,500 recording jurisdictions in the country, over 80 and counting are equipped to handle electronic transactions. So far, they typically handle only simpler transactions like lien releases, not complete real estate deals, which are more complicated. And with refinances down from past years, Bramante says, the volume of e-recordings has declined.

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