Authentication: The process of identifying an individual, usually based in user name and password, but can also require the use of a token. Authentication in systems is distinct from authorization, which grants individuals access to system objects based on their identity. Authentication ensures the individual is who she/he claims to be, but denotes nothing concerning their access rights.

"Users are the weakest link." --Paul Barrett, CEO of Passfaces Corp., Washington, D.C., on the use of password codes that can easily be cracked instead of using alternative security measures.

Momentum for eRecordings Gaining Among Counties
Murray, Michael
TAMPA, Fla.-County recorders have largely taken the brunt of criticism for slowing the e-mortgage evolution, as many hesitated to implement electronic recordings (eRecordings). Increasingly, however, they have become a willing partner in the process.

Industry analysts speaking here at the Mortgage Bankers Association's National Technology in Mortgage Banking Conference & Expo said county electronic eRecordings save time and costs and are spread around the United States.

"It is amazing what has been done in this industry, but developing data standards for e-mortgages and eRecording is one thing, driving market place implementation and adoption of standards is another," said Mark Monacelli, president of the Property Recording Industry Association (PRIA).

Carmelo Bramante, managing director at cdb Consultancy and board director of PRIA, said scanned paper (images) with XML data is the favorite of three eRecording models. The other models are scanned paper, or images, and an electronic presentation (eDoc format) with XML data. PRIA has been working with MISMO's XML data standards for the mortgage industry for the past five to six years to standardize data for eRecordings.

"We are lock-step with MISMO so that whatever lenders create, they are able to send it to county recorders," Bramante said. He cited the unofficial "80-20 rule" or, more precisely, the "80-10 rule:" nearly 10 percent of e-recording jurisdictions handle 80 percent of loan originations. In this case 230 eRecording counties handle nearly 40 percent of the volume.

"The number is higher [than 230] right now," Bramante said. "We just have not verified them." Nearly 68 counties are in the eRecording development stage at this time, he said.

For those counties that have adopted eRecordings, the feedback has been positive. In the Bexar County Clerk Office in San Antonio, Betty Aguilar, chief deputy of Bexar County, said the county processes 316,000 documents per year with eRecordings nearly 40 percent of all document types. Since January 2005, 66,530 documents were eRecorded and nearly 104,590 documents were eRecorded in 2006. More than 15,000 were recorded electronically this year.

"We adopted eRecording and are loving it," Aguilar said.

"We are doing it every day-tens of thousands going through-and the error rate is less than 1 percent," said Alan Cellura, president and CEO of Landata Technologies Inc., San Antonio. "Technology is there. It does work. We can provide correct fees. The fee structure is done automatically."

In some states, counties need to record mortgages prior to "table funding"-immediate funding for mortgages. A loan can fund with an electronic promissory note, delivered to an investor, without an e-recording. However, eRecordings can also prevent identity theft by recording a loan almost immediately. 

Cellura said county clerks can receive title documents anytime during the day. Most county clerk offices can process documents from 8:00 a.m. to 4:30 p.m., but closing agents and lenders can send title documents to the county recorder at anytime. The eRecordings reduce the mailing and shipping process.

"This is a significant savings," Cellura said. "The quality control process reduces the number of rejection documents and going the eRecording process actually validates again the accuracy of documents before the documents go out to the county."

Under law, eNotarization does not require digital certificates for the notary's eSignature-it is one point that is not a myth but that notaries can use any type of electronic signature under E-SIGN, UETA (Uniform Electronic Transaction Act) and URPERA (Uniform Real Property Electronic Reporting Act).

Bramante said loan volumes-not budgetary issues-prevented eRecordings from county recorders because current eRecording counties have implemented solutions without having budgetary issues. He said recordings will not necessarily lead to a "hybrid world," unless table funding stalls in particular muni