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Ernst: More eRecording Ups TRID Non-compliance Risk

Ernst: More eRecording Ups TRID Non-compliance Risk

Lenders are turning to Ernst patented technology to mitigate TRID risk

ALBANY, NY-May 9, 2018-More jurisdictions are accepting electronic documents for recording into the pubic record, according to Ernst Publishing, the leading provider of technology and closing cost data for the real estate and home finance industries for the past 29 years. While eRecording has been available in some counties for many years now, only recently have we seen the processing gaining traction. This is good news for the home finance industry and consumers, but because fees vary by jurisdiction and are passed on to the borrower at closing, this increased complexity increases the lender's TRID risk.


"TRID requires the lender to get the fees right on the Loan Estimate and then match those numbers on the Closing Disclosure," said Gregory E. Teal, President and Chief Executive Officer of Ernst Publishing. "That can be very difficult for lenders when jurisdictions around the country are adding new fees for new offerings, like electronic document recording. The general lack of standardization in which documents can be eRecorded and at what cost makes this a minefield for the lender."


The Property Records Industry Association (PRIA) describes eRecording as the process of submitting documents for recording online and having them reviewed, recorded, and returned back to the submitter electronically. Of the 3,600 counties, approximately 1,800 counties currently allow for eRecording documents. There are now 8 states that currently have 100 percent county participation in eRecording transactions (AK, AZ, CO, DC, DE, HI, IA, & MA). Each jurisdiction charges fees according to their own schedules.


To add to the complexity, not all counties eRecord all document types, requiring the lender to send the others in on paper. The fees charged for paper can differ from those charged to eRecord. eRecording is typically, but not always, less expensive because the country need not include a fee for returning the paper documents.


"We're pleased to see eRecording gain traction," Teal said. "We have been working on this as a supporter of PRIA for many years. But change brings risk with it and lenders need the right tools to make sure that they get every fee right when they disclose to their borrowers. Failure doesn't just expose them to non-compliance risk, it costs them business."


Ernst programs processed 250 million real estate transactions in 2016, making it the most used technology of its kind in the industry. Since the company was founded 29 years ago, Ernst has processed well over 1 billion transactions and unveiled dozens of technologies and products that produce efficiency across the real estate industry. CEO Gregory E. Teal is a Vanguard award winner. The firm estimates that its technology is in use for 90% of the nation's new loan originations and refinance transactions.


About Ernst

Ernst Publishing has been the authority on land recording requirements and leading provider of technology and closing cost data for the real estate and home finance industries for the past 29 years. Ernst's recording fees, transfer taxes and title data have been integrated throughout the title and lending industries and its patented solutions are trusted and used by 9 of the nation's top 10 mortgage servicers, all 5 of the top title underwriters and 9 out of 10 mortgage originators nationwide, including 9 of the 10 largest banks. Lead by an award-winning CEO, the company has processed well over 1 billion transactions and unveiled dozens of innovative technologies that provide efficiency and guaranteed accurate results for its clients, allowing them to rebuild consumer trust and deliver excellent customer experiences. For more information about the company, visit the website.


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Media Contact:

Rick Grant



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