Better Processes for Easing the Lien Release Hassle

Lien Release Service | MetaSource Mortgage

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.

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.

We also ensure a fully transparent process with our proprietary Lien Release and Assignment Software, EclipseTM. Eclipse provides real-time insight into file statuses, on-platform exception handling, automatic file and message logging, and other features that expedite the process and keep you in the know.

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 that don’t along with an escrow payment if needed.

We also ensure that the county follows through: tracking how long counties take to record and return document. If a document is not returned within 30 days of normal turnaround time, MetaSource follows up to determine if the document is recorded or needs to be resubmitted. We recommend returning the recorded lien release to the borrower, even in states where this is not required.

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 hire third-party attorneys or title companies licensed in each state. MetaSource clients have a more convenient option as we are equipped to handle lien releases in all 50 states with processes that are far more effective at reducing document rejections.