Mechanics of Electronic Recording Presented by Todd R. Hougaard President & CEO - PowerPoint PPT Presentation

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Doing Business with Digital Documents. Mechanics of Electronic Recording Presented by Todd R. Hougaard President & CEO. A Discussion on … Technology and Policies. Processes/Policies. Electronic Recording is ... 30% - Technology 70% - Policy.

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Mechanics of Electronic Recording Presented by Todd R. Hougaard President & CEO

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Doing Business with Digital Documents

Mechanics of

Electronic Recording

Presented byTodd R. Hougaard

President & CEO


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A Discussion on …

Technology

and

Policies


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Processes/Policies

  • Electronic Recording is ...

    • 30% - Technology

    • 70% - Policy


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Presentation Outline

Mechanics of Electronic Recording

  • Legal Requirements

  • A Review of Electronic Recording Technology

  • Processes and Policies

  • Defining Electronic Recording Policies

  • Security

  • Demonstration


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Enforceable?

Doing Business with Digital Documents

Legal Requirements


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Legal Requirements

  • Uniform Electronic Transactions Act (UETA)

    • Currently adopted by 24 states (as of 3/01)

    • In consideration by additional 22

  • Electronic Signatures in Global & National Commerce Act (E-SIGN)

    • Signed June 2000

    • In effect October 2000

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Legal Requirements

  • State

    • Laws

    • Policies

    • Guidelines

  • Fraud and Forgery Deterrence

    • Security of Digital Documents

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Flash from the past!

Doing Business with Digital Documents

A Review of

Electronic Recording


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eDocument Technology

  • Paper Era (1630-1950)

    • Printed Form

    • Typewriter

  • Modern Era (1950s)

    • Microfilm/Microfiche

  • Computer Era (1970-2000)

    • Computerized Indices

    • Computer Imaging

  • Paperless Era (2001 +)

    • XHTML—Data/Display Format

    • Digital Signatures

    • Legal acceptance of Digital Documents

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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XML

PDF

TIF

XHTML

Word

RTF

Word Perfect

eDocument Technology

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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eDocument Technology

  • XHTML - (XML & HTML)

    • eXtensible Markup Language

      • Readable by computers

    • HyperText Markup Language

      • Code used to view an internet page

      • Readable by human eyes

  • Combination Creates “Smart” Documents

    • Humans and computers can read

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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eDocument Technology

  • XHTML (digital documents)

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration

Human View

DEED OF RECONVEYANCE

Lot 21, Murray Bluffs Subdivision, according to the official plat thereof, on file in the office of the Salt Lake County Recorder. 21-23-153-001

Computer View

<InstrumentType code="Recon">DEED OF RECONVEYANCE</InstrumentType>

<LegalDescList>

<LegalDescBlock LDidref="">

<Lot Rcrd="" fill="textbox" tooltip="Lot">Lot 21,</Lot>

<Subdivision Rcrd="" fill="textbox" tooltip="Subdivision">Murray Bluffs Subdivision,</Subdivision>

<Township Rcrd="" fill="textbox" tooltip="Township/Block"></Township>

<Range Rcrd="" fill="textbox" tooltip="Range/Plat"></Range>

<Section Rcrd="" fill="textbox" tooltip="Section"></Section>

<QtrSection Rcrd="" fill="textbox" tooltip="Quarter Section"></QtrSection>

<QtrQtrSection Rcrd="" fill="textbox" tooltip="Quarter Quarter Section"></QtrQtrSection>

<Meridian Rcrd="" fill="textbox" tooltip="Meridian"></Meridian>

<LegalDesc Rcrd="" fill="textarea" tooltip="Legal Description"> according to the official plat thereof, on file in the office of the Salt Lake County Recorder.</LegalDesc>

<ParcelNo Rcrd="" fill="textbox" tooltip="Parcel Number">21-23-153-001</ParcelNo>

</LegalDescBlock>

</LegalDescList>


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Dear Customer,

It has been our pleasure to serve

you. We eagerly anticipate a successful project. We will contact you next week to schedule a launch meeting.

Sincerely,

Todd Hougaard

Digital Certificate File- Public Key

<Certificate Base64value= "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

Electronic Signature Choices

  • Typed

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration

  • Digitized – UPS or FEDEX

  • Digital


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Digital Signatures

  • How…

    • Mathematical Equations

    • Documents Read by Computer as Numbers

    • Example: Todd = 1001110000110

  • Digital Certificate

    • Two Very Large Prime Numbers

      • Private key – Known only by the person signing

      • Public key- Used to “unlock” a signature and validate

    • Authenticated by Certificate Authorities

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Digital Signatures

How do I digitally sign a document?

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Digital Signatures

How is a digital signature verified?

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Digital Signatures

  • Digital Signatures Provide…

    • Signer Identity

    • Document Integrity “tamper proof”

    • Formal Legal Compliance Equivalent to Ink

    • Efficiency – Computer examination

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Digital Signatures

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration

Ingeo Educational Series


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In Context!

Doing Business with Digital Documents

Processes

and

Policies


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Processes/Policies

Standards Groups

  • MISMO- Banking and Mortgage Industry

  • AARTT- Alliance for Advanced Real Estate Transaction Technology

  • Property Records Industry Joint Task Force – NACRC/IACREOT

  • California XML Standards Group

  • Legal XML

    Note: Corporate Techies

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Recording Stakeholders

Recorders

Notaries

Signer

Judges

Large Lender

Large Volume Loan Servicer

General Public

Local Government Office

Title Insurance Underwriter

Title Plant Operator

Processes/Policies

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration

  • Prosecuting Attorney

  • Closing Attorney

  • System Providers

  • Small Lender

  • Small Volume Loan Servicers

  • DBA Filings – Business

  • State Tax Offices

  • Misc. Private Sector

  • IRS Tax Lien Office


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Stakeholder Interests

Integrity of record

Record permanence

Security

Non-proprietary

Access to records

Trust

Processes/Policies

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Processes/Policies

  • Recorder’s Customers

    • Closing Attorneys and Agents

    • Title Agents

    • Title Plants

    • National Mortgage Lenders

      • Top 10 do 55+% of all mortgage lending

    • National Mortgage Servicers

    • Local/Regional Banks and Credit Unions

    • Other Government offices

      • Treasurer

      • IRS

      • State Tax

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Processes/Policies

  • Customers’ Interests

    • Ease of adoption

    • Benefits

      • Automation

      • Increased efficiency

      • Competitive advantage

    • Uniformity – multiple locations

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Processes/Policies

  • UETA requires that parties “agree on how to do business” …

    • Law = broad boundaries

    • Must define and agree on industry policies

    • Policies are not laws

      • Policies define guidelines

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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But we’ve always done it this way!

Doing Business with Digital Documents

Defining Electronic

Recording Policies


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Defining Policies

  • File Format Criteria

    • Presentation/Viewing/Display

      • Proprietary vs. Open

      • Processing ability/Performance

      • Records Quality/Permanence/Archive

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Defining Policies

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Defining Policies

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Defining Policies

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Processes/Policies

Customer Considerations

High Difficulty

Closing Attorneys

and Agents

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration

Title Agents

Local/Regional Banks

Treasurer

Low

High

Benefits

  • Automation

  • Increased Efficiency

  • Competitive Advantage

Nat’l Mortgage Lender

IRS

State Tax

Title Plants

Nat’l Mortgage Servicer

Low Difficulty

Ease of Adoption

  • Fit Existing Systems

  • Training Requirements

  • Access


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Processes/Policies

eDocument Considerations

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration

TIF

Multi-File

XHTML

ProprietaryAdobeVendor DependentW3 Internet Standard

Longevitymid 1980’sVendor Sys Dependent1960’s

Doc Data SourceTypistData Linked to DocData Contained in Doc

Automation AbilityNo ScanningData EntryComplete End-to-end

Processing SpeedTypist SpeedDependsProcessor Speed

Print/Display ToolsTIF ViewerVendorInternet Browser


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Electronic Signature Policy

  • Purpose of Signatures*

    • Evidence

    • Ceremony

    • Approval

    • Efficiency and Logistics

      *American Bar Association

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Electronic Signature Policy

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration

“The statute of frauds of the common law tradition, for example, does not render a transaction invalid for lack of a “writing signed by the party to be charged,” but rather makes it unenforceable in court …”

American Bar Association


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Processes/Policies

Electronic Signature Policy

High Difficulty

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration

Digital

Digitized

Low

High

Document

Authentication

Typed

Low Difficulty

Signer

Authentication


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Processes/Policies

Digital Certificate Policy

High

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration

Recorder

(Licensed CA)

Licensed

Notary CA

(ARCANVS)

Signer

Transport

Low

High

Easy to

Access

Low

Self-Generated

Trust


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Processes/Policies

Document Integrity Policy

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Just how secure is it?

Doing Business with Digital Documents

Security


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System Security

  • Receiving system isolated from other systems?

  • Protected against system failures?

    • Disaster Recovery

  • Encryption

  • Transmitter Identity

  • Legal Requirements

  • Review

  • Electronic

  • Recording

  • Processes and Policies

  • Defining

  • Policies

  • Security

  • Demonstration


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Thurston County, WA

  • County

    • County Recorder, County Records Manager, Recording

    • Assistants, County IS/IT Staff

  • Title Companies

    • Chicago Title

    • Pioneer Title

    • Transnation

  • Certificate Authorities

    • Digital Signature Trust Co.

    • ARCANVS

  • County Software Vendor

    • Eagle Systems


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The Value of Time

Paper

Electronic

  • Prepare documents(5-10 minutes)

  • Execute documents & fee prep (5 minutes)

  • Delivery (½ to 5 days)

  • Recorder processing (½ to 21+ days)

  • Return delivery (½ to 5 days)

  • Enter documents into system(½ to 21 days)

  • Prepare documents(5-10 minutes)

  • Execute documents & fee prep(5 minutes)

  • Delivery(< 3 seconds)

  • Recorder processing(< 20 seconds)

  • Return delivery(< 3 seconds)

  • Enter documents into system(< 10 seconds)

2-42+ days, Some errors

< 15 minutes, Minimal errors


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Demonstration


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Contact Info

Todd Hougaard

President & CEO

Phone: (435) 755-9837

E-mail: thougaard@ingeo.com


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