Assignment, Releases & Title Services: Migration Frustration
As quickly as loans fly in the front door, just as many fare flying the coop out the back door. That's the experience the mortgage industry has had to manage during the past few years. A record loan boarding workload has been coupled with a record number of loan payoffs. Add to the sheer volume, and lenders have the typical problems associated with trailing documents and questionable title or title insurance.
And things aren't getting much easier. Last month, interest rates were hitting low points not seen since early this year. In fact, the average 30-year mortgage rate had fallen for nine of the previous 10 weeks in early June. Refinancing rates started to creep back upward as a result, and there is little dispute that lending volume will be heavier this year than many economists expected at the beginning of the year.
For that reason, lenders and their business partners are looking for ways to facilitate the processes inherent in lien releases or reconveyance, transfers of title and servicing rights, and other work associated with title to a mortgaged property. Lenders want to have the flexibility and scalability to manage a workload that varies greatly from quarter to quarter, from year to year.
One thing that is helping is MERS, formally Mortgage Electronic Registration Systems. MERS recently surpassed the 30-million-loan mark, a threshold that suggests the industry-owned utility has gained traction and become a must for the mortgage industry.
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