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How to Approach the Lien-Release Process

Lien-release management is among the tasks that does not contribute directly to bottom line success, but if improperly handled can lead to significant costs, according to Danny Byrnes, VP Sales and Marketing, Nationwide Title Clearing. In a recent white paper, Byrnes discusses the best practices for mortgage loan servicers when partnering with a lien-release partner.

“Regulators and legislators realized years ago that lien release management was an important part of the work the industry must complete in order to keep the marketplace running smoothly for consumers,” Byrnes said. “While it is not a profit center for the servicer nor is it an area in which they have any hope of distinguishing themselves in the marketplace, failure to perform in this area can lead to significant dissatisfaction on the part of borrowers.”

Issues Servicers Should Consider

According to Byrnes, there are several issues servicers need to consider when evaluating lien release management partners or their own internal processes, including a need for a proactive process for updating changing county/state requirements, a comprehensive plan for business continuity and disaster recovery, and many more.

Other topics are of vital importance, and should be considered foundational skills for any vendor. This includes compliance to federal regulators, audited and validated security protocols, document review and signing practices, and proficiency in conducting chain-of-title research.

Byrnes lists key values for outsourcing lien releases, including:

  • Ease of sending work out when a relationship is in place
  • Solving staffing volatility
  • Mitigating the risk of of high out-of-compliance penalties

When choosing a vendor, Byrnes suggest demanding a specific commitment to accuracy and compliance, and a commitment to fulfilling the service level agreement. Vendors should also have both a strong focus the lien release business and a commitment to your own business, as well as a commitment to adequate technology, training, and transparency.

Read Byrne’s complete white paper here.

About Author: Seth Welborn

Seth Welborn is a contributing writer for DS News. He is a Harding University graduate with a degree in English and a minor in writing, and has studied abroad in Athens, Greece. An East Texas native, he also works part-time as a photographer.
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