How Can AI Help in Document Prep and Recording to Avoid Out-of-Compliance Penalties?
As I am learning about complexities and state regulations in the mortgage release and assignment preparation and recording world, it becomes quite scary for the investor to miss some of the state specific timelines to prepare and file a document. Some states require a release document to be filed correctly in the county records within days after the loan is paid off. For example, the penalty in New Hampshire is $200 per week for each loan that exceeds the 60 day compliance window. In fact, the penalty amount has a maximum of $2,500 or an amount equal to the loss sustained as a result of the mortgagee’s failure to execute and deliver a release, whichever is greater, plus costs and reasonable attorney’s fees. In South Carolina, the penalty can be as much as $25,000 plus damages and costs if the lien is not properly satisfied within three months.
Artificial intelligence will help guarantee that the document is recorded correctly the first time, eliminating possible rejections by the register of deeds for defects such as original mortgage reference issues. We have developed a product called Data Cleanse which compares the data on the actual recorded mortgage and assignment copies to the data used to prepare the document to be recorded. The same engine is now used for post-closing document reviews by ProTitleUSA
and One Diligence, LLC.
As announced at the end of 2021, we have acquired DocSolutionUSA fka DocSolution, a nationwide document prep and recording firm utilizing access for all e-recording counties. Recently, we completely integrated AI technology for automatic data extraction and review to create documents. In fact, we have launched an online web entry form with validation that clients can use to create their own assignments or releases with AI QC enabled.
During a client’s recent presentation, the system we built was described as “very cool” and “working like magic”. If you are interested in taking a look at our technology, please email Veronica Rudan at email@example.com