Property Records Industry Association About PRIA (and PREP) Florida Electronic Recording Advisory Committee August 20, 2007 Tallahassee, FL Carol Foglesong, PRIA President

Property Records Industry Association Why is there PRIA? 1997 Skyrocketing operational risk Killing a tree for each mortgage Perceived industry threats to recorders MERS Revised Article 9 (UCCs) State agency “take over” Perceived recording threats to industry Failure to timely recorder = funding impact Recorders as “document police” No communication or cooperation among the groups involved in the land records industry Tunnel vision and industry silos

Property Records Industry Association It is the mounting cost, inconvenience and annoyance of handling all the paper – the printing, requesting, receiving, filing, retrieving, duplication, triplication, faxing, shipping, filing again, losing, finding, reshipping, validating, reading, pretending to read, auditing, and archiving – that has everyone looking for a better way. Mortgage Banking Magazine 2002 An Industry View

Property Records Industry Association What to do? Convened group of recorders, mortgage bankers/brokers, title plant and title underwriters in 2/1998 Created unique business/government forum Sought to identify issues and find consensus solutions

Property Records Industry Association Property Records Industry Joint Task Force (PRIJTF) created in 1998 as a 3-year project PRIJTF converted to the Property Records Industry Association (PRIA) in August 2002 As a 501(c)(6) Non-Profit Corporation As a Government/Business Partnership PRIA is a standard-setting organization Improve performance in the property records industry in terms of accuracy, access, speed, standards and education PRIA (Partnership ● Knowledge ● Results)

Property Records Industry Association Real Estate Document Formatting White Paper Recorders Guide to Revised Article 9 Indexing Standards White Paper Essential Notary Standards White Paper NCCUSL Registered Observers Uniform Real Property Electronic Recording Act Mortgage Satisfaction Act Study Committee on Notarial Law URPERA Enactment and Implementation Guide NCCUSL Mortgage Satisfaction Act Records Access & Privacy Policy Military Discharge (DD214) Model Legislation Privacy Access White Paper SSNAPP Act Model Legislation Electronic Recording Standards (vers iGuide) Recording Electronic Images on Microfilm Best Practices PRIA Accomplishments

Property Records Industry Association PRIA Projects in the Works Property Records Education Partners (PREP) First Page Indexing Requirements Implementation Permanent Land Record Backup and Disaster Recovery Best Practices Electronic Recording Standards (moving to schema versions) Land Fraud (Detect, Deter, Prevent & Resolve) NCCUSL Uniform Law on Notarial Acts (ULONA) Legislator Education on Privacy & the Public Records Implementing URPERA in the states Master Mortgage/Short Form Mortgage Impact

Property Records Industry Association Industry Changes Update Number of documents recorded = + 250% in the last 10 years Number of pages per document = doubled Go to the Internet for recorder information Documents arrive from all over the U.S. and world Loan origination to closing down from days to one week or less Ever-changing closing requirements RESPA Reform, eMortgages, eRecording, etc.

Property Records Industry Association In order to sell a loan, there are 4 requirements Note Title Insurance Policy HUD 1 Statement Recorded Mortgage

Property Records Industry Association Government must do more with less …

Property Records Industry Association The Electronic (R)Evolution Provides an opportunity for rethinking the “way it has always been done.” While technology creates new opportunities, it also creates new challenges Provides an opportunity to develop standards and create alliances

eMortgage Vision Consumer Lender  Sign SMART documents electronically  Notarize electronically  Seal and encrypt data and docs together Closing Parties Investors County Recorder Mortgage Servicer Warehouse Lender Title Insurer Borrower Closing Agent Future eMortgage Process Notary Public Tax Assessor Tax Collector eDocument Custodian RE Agent Title Agent Company eNote Registry

Property Records Industry Association eRecording Standards PRIA creates and defines the eRecording Standards In alliance with the Mortgage Industry Standards Maintenance Organization (MISMO) We also network with others…

Build Alliances and Networks F American Land Title Association F American Escrow Association F Association of Title Information Management F NACRC and IACREOT F Notary organizations and associations F Legal XML/OASIS, SISAC, SPeRS F National Conference of Commissioners on Uniform State Laws (NCCUSL) F American Bar Association F National Public Records Research Association F Appraisal Institute (for Property Appraisers) F Government Entities F Mortgage Bankers Association F Drill down to the states

Industry Alignment How do we choose our ESIGN and UETA solutions? What should we be thinking about? How do we create and process eMortgage files? How is the business data defined? How do we plug all this into the County Recorder? How do we know this is the real eNote? MERS eNote Registry How do we know which digital sigs. to trust? SISAC SISAC Copyright 2004 Mortgage Industry Standards Maintenance Organization

eDoc Prep Service Ordering: Credit Flood Hazard Title MI MERS® eRegistry (National eNote Registry) eVault eDocuments eNote Data, Messaging & Control eOrigination & Underwriting External Docs eRecording Legal eDocs (Land records, tax liens, other docs/affidavits ) eClosing BuyerSeller eNotarization eSignatures eMortgage Process Flow Secondary Investor, Aggregator eVault Servicing

Property Records Industry Association This is what eRecording looks like!

Property Records Industry Association eRecording Today Models of eRecording 1 - scanned paper, images transmitted 2 - scanned paper or electronically signed documents, images and data transmitted 3 - SMART docs, intelligent PDF or xhtml (data and presentation in one eRecord document package) 250+ PRIA-Verified Counties eRecording Verified = by recorder, by vendor, & by submitters URPERA iGuide: view & download from PRIA website ( under Real Property Law and Legal Issues buttonwww.pria.us

Property Records Industry Association PRIA Sponsors PREP

Property Records Industry Association In the beginning… A promise was made AEA, ALTA, IACREOT and NACRC joined together to discuss this issue Met via conference calls and decided to do a survey Survey results overwhelming: need local forum for discussing industry issues In 2003, the four founding associations agreed to fold the PREP under the PRIA

Property Records Industry Association What PRIA Provides Today PREP Coordinator = Ardis Schmitt Website at All Materials “How to” guide posted on PRIA website Suggested Agenda Guidance (examples from other PREPs) PREP Steering Committee Develops goals and strategic plan

Property Records Industry Association Role of the PREP You own it, you own it, you own it… Industry partnership that works together at the local level Provides a framework to network, collaborate, and exchange information with the end goal of making the industry a better place Information from local level permeates to national level; national information permeates to local level

Property Records Industry Association PREP Success Stories Reduced document rejection rates Reduced phone calls Increased on-line subscribers Developed contact “go to” list Increased awareness & knowledge of industry issues Feedback forum Working together on legislation Provides mechanism to work with “problem” areas in the local market place Increased education opportunities

Property Records Industry Association Florida PREP Chapters Central FL PREP Emerald Coast PREP North Central FL PREP South FL PREP West Coast FL PREP +2-3 more under development

Property Records Industry Association PRIA & PREP Industry Alliance Title Recorders Underwriting Realtors Servicing Lenders Escrow Secondary Market Notary

Property Records Industry Association Q & A Carol Foglesong PRIA President Assistant Comptroller, Records Administration Division Orange County Comptroller’s Office, Orlando, FL