Reducing Out of Compliance Lien Releases

In our continuing effort to serve you and your borrowers better, we are instituting certain steps to reduce “out of compliance” lien releases.

As you are aware, there is a mortgage servicing industry problem in receiving the necessary documents from document custodians timely to record lien releases at the respective counties. Although Cenlar orders the loan file from your custodian within three days of payoff, the custodians have either been sending us a file without the recorded mortgage which is necessary to satisfy the lien, or not sending files in time to meet state compliance deadlines for lien releases.

Revised Process

  • Cenlar has engaged the services of a vendor to search a repository of public mortgage documents in an attempt to locate copies of recorded mortgages for MERS MOM loans at a cost that is significantly cheaper than a traditional online or abstractor search.   The current cost is $4.00 per loan.  The Vendor does not charge for unsuccessful searches. It has been our experience that the search is successful on approximately 65% of loans
  • For loans that are registered at MERS, If we have not received a recorded mortgage from your custodian (or an image of a recoded mortgage) we will order a repository search on the 15th day after payoff if the compliance period is less than or equal to 30 days; and on the 30th day after the payoff date if the compliance period is greater than 30 days.
  • We will deliver you a report of loans where the searches were unsuccessful, in retrieving the required documents. We will follow up with you about instituting a process for additional searches on these loans as well as non- MERS loans.
  • Cenlar has enhanced its process for using images of recorded mortgages as a replacement for the actual documents.

Should you need additional information, please contact your relationship manager.