MINNEAPOLIS–(BUSINESS WIRE)–Commercial and residential mortgage lenders who neglect to take advantage of the benefits (and the growing trend towards electronic filing and recording of mortgage-related real estate documents) could encounter significant problems over time, including the increase transaction costs, workflow inefficiencies and dissatisfied borrowers. That’s according to Wolters Kluwer Compliance Solutions, who writes in a new thought leadership article.
“Electronic records are not the way of the future; they are the way of the present,” writes Sandra Langford, Senior Product Manager, Wolters Kluwer Compliance Solutions, in her recently published article, “The Paperless Revolution Will Not Be Televised: Electronic Recording of Real Property Documents is Now,” in the Commercial Lending edition of Scottish guide. “For real estate documentation, the efficiency, security and general convenience of electronic documents make it the most logical option for lenders.
Of the 3,865 county-level registration jurisdictions in the United States today, she notes that most have begun to accept some form of electronic electronic registration and a handful now only accept electronic registrations. rather than manual paper records.
“Lenders are noticing the growing prevalence of electronic records and filings for mortgages, the Uniform Commercial Code and other transactions,” said Steve Meirink, executive vice president and general manager of Wolters Kluwer Compliance Solutions. “This trend reflects the greater growth of electronic and digital platforms for banking transactions of all types, from originations and closings to services and securitizations. Lenders are increasingly embracing the benefits of speed, convenience, auditability and security that digital platforms bring to banking, much to the delight of their customers.
The outbreak of COVID-19 in 2020 abruptly shut down county offices and dramatically slowed the efficiency of the U.S. Postal Service and courier services for weeks. Documents deemed “complete” may in fact have been held up in the mail or at closed receiving offices due to the pandemic, putting deposits at risk. Langford notes that under normal conditions, registration and filing delays of just a few days can cause serious problems for lenders and their clients: a transaction,” she wrote.
Compare that experience, she notes, when organizations move to a secure electronic check-in method. “Imaged documents (electronically), lined up in a queue, waiting their turn: they are organized and there is almost no chance that they will disappear. There is no high security risk – in fact, security is stronger on most online platforms than in the lobby of many county recorders,” she notes.
Scottish guide has covered U.S. financial news, trends and developments for more than 25 years, and hundreds of thousands of mortgage professionals rely on its knowledge to make profitable business decisions.
Wolters Kluwer Compliance Solutions is a market leader and trusted provider of risk management and regulatory compliance solutions and services to US insurers, banks, credit unions and securities firms. The company, part of Wolters Kluwer’s Governance, Risk & Compliance (GRC) division, helps these financial institutions effectively manage risk and regulatory compliance obligations, and gain the insights needed to focus on better service to their customers and the growth of their business.
Wolters Kluwer’s GRC division provides a range of expert solutions to help financial institutions manage regulatory obligations and risk. The eOriginal® suite of purpose-built digital lending solutions from Wolters Kluwer Compliance Solutions, for example, helps lenders digitize their transactions and offers e-signatures, collateral authentication and an e-vault. OneSumX® for Regulatory Change Management from Compliance Solutions tracks regulatory changes and organizes them to create value-added structured content through a single data feed combined with an easy-to-use software solution. Wolters Kluwer Finance, Risk & Regulatory Reporting (FRR), meanwhile, is a global market leader in providing integrated regulatory compliance and reporting solutions. The division’s legal solutions businesses are Wolters Kluwer CT Corporation and Wolters Kluwer ELM Solutions.
About Wolters Kluwer Governance, Risk and Compliance
Governance, Risk & Compliance is a division of Wolters Kluwer, which provides legal and banking professionals with solutions to ensure compliance with evolving regulatory and legal obligations, manage risk, increase efficiency and deliver better results commercial. GRC offers a portfolio of expert technology services and solutions focused on Legal Entity Compliance, Legal Operations Management, Banking Product Compliance and Banking Regulatory Compliance.
Wolters Kluwer (WKL) is a global leader in professional information, software solutions and services for healthcare; taxation and accounting; governance, risk and compliance; and the legal and regulatory sectors. We help our customers make critical decisions every day by delivering expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer achieved annual sales of €4.6 billion in 2020. The group serves customers in over 180 countries, maintains operations in over 40 countries and employs around 19,200 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.