Electronic Recording - “A View from 30,000 feet” Presented to WLIA March 14, 2002

by Mark Ladd Racine County Register of Deeds PRIJTF XML ER Workgroup DTD Chair

Legislative History 1997 Wisconsin Act (1) “…any document that requires a manual, facsimile or other form of signature…may be signed or given effect with an electronic signature…” Electronic Signatures in Global and National Commerce Act (S.761) Broader language than Wisconsin’s statute Pre-emptive of state’s legislation Tied to “UETA” Uniform Electronic Transactions Act Provides framework for electronic transactions

Characteristics of Current ER Models Model 1Model 2Model 3 “Draw-down” or escrow account for payment “Draw-down” / escrow account or debit account Recorder transmits recorded TIFF (“burned”) copy to preparer accessed via electronic vault “Draw-down” or escrow account for payment System produces recorded XHTML file for preparer; converts recorded XHTML file to TIFF for storage Recorder exams, records and stores TIFF; automated indexing by extracting XML data (QC process only) Recorder transmits recorded TIFF (“burned”) copy; label data sent also for paper docs All processes can be automated, including examination and indexing; or, Recorder can choose manual processing. Traditional processing; but no paper. Recorder exams, records, indexes and stores TIFF images. Title - Closing Agent / Lender; 2 files TIFF images and XML data encrypted Title companies / loan closers scans paper & transmits images Digital Signatures & Certificates (signers, notary and Recorder) Electronic Signatures (holographic signing/stylus and e-pad) Ink Signatures (borrowers and notary) 1 Electronic File: Lien Releases XHTML = XML data + HTML format Electronic Loan Closings Electronic Documents (TIFF Images) Paper Closings UETA / E-SIGN / WA State Law UETA / E-SIGN legal framework CA / AZ State Recording Statute Salt Lake County, UT Thurston County, WA Broward County, FL Oakland, M I Orange County, CA Maricopa County, AZ T-1 Line/VPN (CA) and VPN (AZ)Digital Sig and Cert (Closing Agent and Recorder) / SSL (Transmission) Digital Signatures and Certificates SSL (Transmission) Title Companies prepare lien releases XHTML = XML data + HTML format WHERE LAW Document Type Signature Type Security Preparer Payment Recorder Recorded Document © Copyright 2002 PRIJTF

E-Mortgages E-Recording Benefits Reduces recording time / improves throughput Reduces errors due to re-keying of data Reduces costs to all parties Improves productivity Reduces document fraud Standardizes processes and formats “Smart” documents feed processes and systems Uses open and non-proprietary systems and formats Improves customer service and satisfaction

“Even if you’re on the right track, you’ll get run over if you just sit there.” Will Rogers

“Citizens, becoming more aware of the power of the Web, are no longer willing to accept the idea that government service should be slow or confusing.” Bill Gates, the Speed of Thought

“It is not necessary to change. Survival is not mandatory.” W. Edwards Deming

Standards Development All models based on XML technology XML is a programming protocol that allows a community of interest to define its own language about its data MISMO PRIJTF XML ER Workgroup Legal XML 3 Major Efforts Underway

Wisconsin Vision Level 3 Satisfactions Assignments Mortgages Deeds

When Will the Train Leave the Station? Standards development is complete enough for programmers to make design decisions. Racine and Washington counties plan to implement.