James Rhyne, gave very valuable insights on constructing a 21st century information processing system for recording titles. In context of National Registry the most significant issue is transparency. Transparency in the mortgage marketplace is valuable for two reasons: a) valuation of the instrument and b) seizure of the underlying asset can be difficult if the legal standards are not followed.
Any future design must cater to improved access to records. Today, in order to trace a record one has to visit the county where the real property is situated in, while instruments are sold worldwide. Also the prospective design should retain compliance with statute and judicial pronouncements.
Recording, as it exists today, is an incomplete view of what actually happened in the transaction. These voids severely effect the pricing of the instruments. It is interesting today’s records, largely paper documents are manufactured from computer software, making the software very vital for the purposes of analysis. Mr. Rhyne added that, software also enables the production of two forms a) physical and electronic, but the system must work towards ensuring consistency. He stressed on taking practical and pragmatic step to build systems, which allow access to documents instead of waiting for a legislative change.
Requirements of title records vary across jurisdiction. Hence a national registry shall require an economical form of representation of information. Since, in the United States, State real estate law cannot be sidelined by a federal fiat – he suggested creation of some third form of reporting to a national agency. A similar harmonization exercise shall also have to be undertaken for transfer of notes.
Though creation of a future national registry would be an expensive proposition, associated economic benefits justify the exercise. For instance, a uniform identifier shall also contain a large variety of secondary sources of information about the property – reducing the cost of title insurance, reduce risk in real estate transactions and increase efficiency.