CALIFORNIA E-RECORDING SUMMIT Implementing the Electronic Recording Delivery Act February 2005 Sacramento, CA San Bernardino County Business Case for Electronic.

CALIFORNIA E-RECORDING SUMMITImplementing the Electronic Recording Delivery Act

February 2005 Sacramento, CA

San Bernardino CountyBusiness Case

for Electronic Recording

Presented By:De Ana ThompsonChief Deputy Recorder ForLarry WalkerAuditor/Controller-Recorder of San Bernardino County

Page 2CALIFORNIA E-RECORDING SUMMIT

Implementing the Electronic Recording Delivery ActFebruary 2005 Sacramento, CA

Introduction

• The Recorder’s office is under continual pressure to record title companies’ property-related documents as quickly as possible.

• Due to the competitive nature of the real estate industry, title companies rely on timely and accurate recordation of documents. The release of funds to escrow and payoffs of existing loans and other encumbrances depend upon the documents being recorded.

• Multiple parties, such as real estate agents, escrow officers, title companies, lenders, and buyers wait for confirmation that documents are recorded.

• In some cases, the buyer is waiting for the above-mentioned to move into their home and moving vans are waiting for the go ahead.

• The real estate industry is extremely competitive and each party involved has an important stake in the outcome.



The Title Company Submission Process in 2001

Examiner &

Title Company clerks arrives @

7:00

Title Co. clerk submits

documents to Examiiner & signs in with how many

docs they are recording

Title Co. clerk is called in order of

sign in sheet. Sits with

Examiner while docs are being

recorded.

Examiner examines all

docs for recordability and

legibility. Records or

rejects.

Rejected

documents

Documents are indexed and verified for correctness

Cashier and Tile Co. clerk verify the document

count to ensure their were no

errors

Title Co. clerk calls each title

officer to confirm

confirmations

Recorder prepares docs for

scanning

Microfilm is

created

Cashier waits for

the Title Co. clerk

Cashier hand stamps each

document with the recording date and time

Cashier verbally gives Title Co.

clerk the document numbers

Examiner walks documents to be

recorded to cashier

Documents are

scanned

End

Title Co. clerk matches each

document number to each order number

Paper document

is mailed out

Title Co. Recorder



Why the Industry needs E-Recording

• Title Company or Service Company clerk would deliver documents and wait and wait until all documents were examined, recorded and cashiered. (This might take most of the day.)

• Title Company or Service Company clerk might have to travel long distances to meet the specific timeframes for recording. San Bernardino County is the largest geographic county in the country (over 20,000 square miles). This makes it very difficult for these companies to plan their days.

• County budget restraints resulted in the inability to increase staff to meet the increasing workloads.



• Many recorders saw a significant increase in the number of documents

00/01 01/02 02/03 03/04

Documents Recorded 492,293 671,000 860,496949,864

% increase over the previous year 36% 28%10%

Average Docs recorded per day 2001 2728 34983861

# of Examiners 10 10 10 15

# of Docs Per Examiner per day 200 273 344 257

* Based on a 246 day year



Fiscal Years 01-04

35827

48427

38075

40452

39404

42646

30925

37823

43603

42699

47150

45262

63482

60128

44243

62289

43011

61530 52312 46607

59420

63874

59080

55124

66069 56855

58467

70814

60774

67301

68198

68635

73740

76516

78334

114793

85277

87503

87586

85245

61622

74399

77406

64287

80346

81741

77493

86959

0

20000

40000

60000

80000

100000

120000

140000

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Month

FY 2000-01492,293

FY 2001-02671,100Increase of36%

FY 2002-03860,496Increase of28%

FY 2003-04949,864Increase of10%



Reasonable Expectation For Examiners

Examiners need to examine and record documents with care and diligence. But…

–The Title Company clerk wrote everything manually, relating the recorded

instrument number to the order number, occasionally making errors.

–The examiner explains why documents were rejected to the Title Clerk or Service

Agent. By the time that information made it to the Title Company, it may be

incorrect, misunderstood or untimely resulting in phone calls to and from the Title

Company to explain the rejection and resolution again.

– Examiners worked overtime frequently to meet the requirements of the day.

– The Title Company clerk sat with the examiner and they became very chatty which could take away from timely recordings.

– A reasonable average of documents to be examined, recorded and cashiered is about 35 per hour on a 6.5 hour work day. Some examiners can examine more and some examine less.

– We must also consider vacations, sick leave, and just being tired.



The Title Company Submission Process in 2002When Implementing E-Confirmation

One Examiner

and Title Company clerks arrives @ 7:00

Title Co. clerk submits

documents to Examiiner & signs in with how many

docs they are recording

Title Co. clerk is called in order of

sign in sheet. Sits with

Examiner while docs are being

recorded.

Examiner examines,

cashiers and sends e-mail

confirmations

Rejected

documents


Cashier and Tile Co. clerk verify the document

count to ensure their were no

errors

Title Co. clerk calls each title

officer to confirm

confirmations


scanning

Microfilm is

created

Cashier waits for

the Title Co. clerk

Cashier hand stamps each

document with the recording date and time

Cashier verbally gives Title Co.

clerk the document numbers

Examiner walks documents to be

recorded to cashier

Documents are

scanned

Paper document

is mailed out

Title Co. clerk matches each

document number to each order number

End

Title Co. Recorder



The Title Company Submission Process in 2004 When Implementing E-Recording

Prepare recording log

Prepare document cover

sheets

Prepare documents for

scanning

Scan documents

Verify/Correct errors


Send e-mail confirmations

Print face sheets


scanning

Microfilm is

created

Documents are received from title company

Recording time

Examine document

Electronically submit to

Recorder’s Office

Documents are

scanned

End

Cashier/record/ reject documents

Recorder

Title Co.

Recorder

May or may not mail back paper

copy



What are the costs of E-Recording?

Recorder Submitter

One – TimeSoftware development $103,000Hardware $ 8,000Larger monitors ($1,500.00 ea.) $ 22,500(Equivalent of 3.5 examiners for one year) $133,500

AnnualMaintenance $ 25,000

Less TangibleTraining (Operational staff time) $ 650

(Average of 24 hrs./title co.)Technical support/title company $ 400

(12 hrs. per title company)

Hardware $6,392Software $1,275Maintenance $1,043

OngoingMaintenance ?Postage $ .35/doc

Less TangibleTraining of operational end technical staff



What are the savings?

Recorder Submitter

1. Ability to submit documents throughout the day.

2. Leveling of workflow (submissions, confirmations, closings, payoffs, release of funds).

3. Number of lost documents.

4. Documents can be corrected quickly and usually re-submitted the same day.

5. Happier customers.

6. Better utilization of staff.

7. Transportation costs for remote offices.

Less TangibleBetter utilization of staffIncreased productivity

Savings estimates

Postage - Per document $ .35Annual overtime $36,808

Annual cost of 1 document examiner $37,736



For Any Questions or Comments please contact:

De Ana ThompsonChief Deputy Recorder ForLarry WalkerAuditor/Controller-Recorder of San Bernardino County(909) [email protected]

CALIFORNIA E-RECORDING SUMMIT Implementing the Electronic Recording Delivery Act February 2005 Sacramento, CA San Bernardino County Business Case for Electronic.

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