Mortgage Lien Release Service
When loans are paid off, lien releases must be processed by servicers with the county in which the mortgage or deed of trust is recorded within 30-90 days, depending on the county. However, if assignments are not done properly or documents are missing, the lien release will be rejected by the county 99% of the time.
A Big Problem
According to Ernst Information Services, over 10 million documents are rejected by over 3,600 county recorders across the US every year, creating over $500 million in closing cost losses that are absorbed by the lending industry and companies like yours. Ernst estimates that between 12-13% of all lien releases are rejected and that it costs an average of $50 per rejection.
The Lien Release Solution
We decrease the number of lien release rejections, reduce liability, satisfy borrowers, and ensure that the process is being done efficiently with a best practices approach honed over the last 25 years, including our acquisitions of Mortgage Compliance Advisors and Orion Financial Group. After all, as mortgage volumes increase, so do the risks of inefficiency, rejected filings and litigation.
We ensure that all the documents needed to successfully process lien releases are in your possession (note, mortgage/deed of trust, assignment(s), title, etc.), that they are provided to the county with correct borrower information (borrower name, address, etc.), and that the correct documentation is provided to the borrower to close the loop.
How Our Lien Release Service Works
With a combination of business process outsourcing (BPO) services, workflow automation software and cloud document management, MetaSource streamlines the lien release process to help ensure compliance and maximize productivity for servicers.
When any relevant document is received, via mail, fax or SFTP, our workflow submits the lien release for sign-off. Our mailroom service picks up paper mail then preps, scans and indexes these documents for ingestion into the workflow.
The lien release is either recorded electronically with the 1,600 counties that accept them, or printed, mailed and sent to those who don't along with an escrow payment if needed.
We also ensure that the county follows through: we individually track counties to know how long they take to record a document and how long they take to return the recorded document. If a document is not returned within 30 days of the county’s normal turnaround time, MetaSource follows up with the county to determine if the document is recorded or if it needs to be resubmitted. In addition to the “original docs” states, we recommend at minimum the recorded lien release is returned to the borrower.
Substitution of Trustee Service
Six states—Idaho, Montana, Nebraska, Oregon, Utah, and Washington—require an attorney to execute the lien release. The attorney must be licensed in the state to act on behalf of the mortgagor or entity responsible for releasing the lien.
Some use people in their legal department while others used third-party attorneys or title companies licensed in each state. Why endure that headache? We are equipped to seamlessly handle lien releases in all 50 states. You will find this to be far more convenient than using a hodgepodge of multiple parties or needing to keep licensed attorneys on staff, and far more effective at reducing document rejections.