When you think about the lien releases you process, we have five questions:
- How many lien releases did your company process last year?
- How many of them were rejected?
- How much did each rejection cost you?
- How much time does it take you to process lien releases?
- What is the average hourly wage for each person processing them?
Are you starting to get a feel for what lien releases and rejections are costing you?
Costs: Quantitative & Qualitative
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.
How can you decrease lien rejections and ensure that the process is being done efficiently? We recommend taking a best practices approach. After all, as mortgage volumes increase, so do the risks of inefficiency, rejected filings, unhappy customers, and litigation.
The following best practices are explored in our latest whitepaper entitled, Reducing Document Rejections: 5 Lien Release Best Practices:
- Understanding Local Requirements
- Taking Advantage of eRecording
- Dealing with County Delinquencies & Wrong Documents
- Handling Substitution of Trustee States
- Closing the Loop