Complying with industry standards on document execution and the necessary supporting documentation has been a hot topic in our industry recently. We’ve seen practices all over the map at various servicers when it comes to the due diligence required for executing assignments, which are not the same as affidavits and do not state personal knowledge of the facts. There has been industry confusion and wild swings in legal recommendations based on common misconceptions.
At Nationwide Title Clearing, we have consulted a number of clients on this issue to help them implement new processes for mortgage and assignment chain validation, when property searches are needed, reviewing their processes for collateral document reviews and determination of the reliability of their images. I decided to write a brief initial white paper on the topic entitled Understanding Current Assignment Validation and Execution Practices, from our point of view and experience dealing with clients to get some best practices shared sooner than later. This topic could absorb a year of research and writing in itself, and changes daily – therefore I plan on releasing more articles dealing with specific aspects of mortgage assignments in the future.
I hope you find this information useful and I welcome your feedback.