California Leads The Way

Settleware Helps American First Credit Union Sell E-Note Registered With MERS eRegistry to Fannie Mae

The Paperless System Worked Flawlessly and the Deal Was Signed, Sealed and Delivered

LAGUNA BEACH, Calif., July 23, 2007 (PRIME NEWSWIRE) --

* Easy-to-use middleware solution works perfectly with MERS(r) and Fannie
Mae.

* Borrowers thrilled with the process and the results.

* Fannie receives and validates the e-Note in 1 minute 36 seconds.

* Settleware now in full production in the lender's shop.

Settleware(r) Secure Services, Inc. today announced that Ruben and Darla Nino of Buena Park, Calif., were the first home loan borrowers to have their electronic mortgage note registered with the MERS(r) eRegistry through the use of the Settleware Solution. American First Credit Union (AFCU), La Habra, Calif., originated the loan, and then sold it and electronically delivered it to Fannie Mae.

"We were very excited when the loan closed and was registered with the MERS(r) eRegistry," said Rick Triola, President and CEO of Settleware Secure Services, Inc. "But now that it has been sold and delivered to the final investor, Fannie Mae, we couldn't be happier with the results. We've been working for a long time to perfect this system and we're thrilled that it worked flawlessly."

AFCU has been using Settleware's Secure Signing Solution for over 18 months for electronic signatures, electronic notarization and electronic recording of digital documents without scanning.

"We've been successfully using Settleware's E-Notary and E-Recording solution to release our mortgage liens electronically for over a year and the next logical step was to produce our first E-Mortgage. Electronic mortgages are essential in speeding up the loan closing process, improving service quality, and reducing costs," said Carlos Miramontez, Vice President of Lending for American First Credit Union. "We are grateful to have partnered with Fannie Mae and Settleware to make this E-Mortgage concept a reality for our credit union. Our E-Mortgage proves that you don't have to be a billion dollar mortgage lender to be able to afford the technology needed to closed mortgage loans electronically. In fact, in today's competitive mortgage industry lenders can't afford not to progress in producing E-Mortgages."

"The lender was also pleased with the fact that the loan was purchased by Fannie Mae the same day. This can only be attained through the effective application of technology," Miramontez said. Other experts agree.

"Electronic Closing systems like Settleware can provide a better borrower experience, while registering the eNote on the MERS(r) eRegistry and delivering it to an investor within minutes," said Harry Gardner, MBA's Senior Director of Industry Technology and Vice President of eMortgages for MISMO, Inc. "We are very pleased that Settleware has built a solution supporting the MISMO(r) eMortgage standards. The use of standardized e-documents and transactions will lead to broader lender adoption of eMortgages and greater liquidity for electronic notes throughout the industry."

Triola says lenders are seeking out technologies like Settleware in order to meet the changing needs of the marketplace. Today, Settleware offers the only single-platform e-signing solution in production for the fully-electronic real estate and mortgage transaction, from the Point-of-Sale through to the County Recorder's office and the secondary mortgage market. The company's innovative workflow meets all standards set by the ESIGN Act and UETA and supports both MISMO SMART Doc(r) and e-Signed PDF standards.

A 27-year veteran of the industry and former Wall Street Investment Banker, Triola served as Sales & Marketing Director of one of California's largest independent escrow companies before launching his technology business. Under his leadership, nearly $5 billion of real estate transactions were generated, processed, and closed. But in the future, according to Triola, every industry will need better software.

"The entire mortgage industry is moving in the direction of all-electronic mortgages, and for good reason," Triola said. "We're very glad to be in production with American First Credit Union. They've been a great partner and this is fitting in many ways, perhaps chief among them being that this is an American first. Going forward, Settleware will be the standard solution for electronic lending."

Dan McLaughlin, EVP of MERS said, "We are pleased to have Settleware in production with the MERS eRegistry. We were also excited to see American First Credit Union transfer the eNote to Fannie Mae using MERS(r) eDelivery. Rick (Triola) and Settleware have demonstrated real leadership in the evolving eMortgage market from the beginning."

About MERS
With over 3,000 lenders registering an average of 25,000 loans a day, MERS continues to grow. Borrowers name MERS as mortgagee for the lender on deeds of trust and mortgages that are recorded in the county land records. Lenders then register the loans on the MERS(r) System and electronically track changes in servicing and beneficial ownership rights over the life of the loan.

The company's vision is to eliminate all paper from the mortgage lending process. To date, it has launched several products in support of this vision, including MERS(r) Commercial for the CMBS marketplace, and the MERS eRegistry, the legal system of record that identifies the owner (Controller) and custodian (Location) for registered eNotes, providing greater liquidity, transferability and security for lenders. To learn more about MERS, visit us at www.mersinc.org.

About Settleware
Based in Laguna Beach, Calif., Settleware Secure Services, Inc. has been working to facilitate electronic transactions since 1999 and is the leading provider of e-Signatures, e-Notarization and e-Recording workflow to the Mortgage/Real Estate Industry. Today, Settleware offers the only single-platform e-signing solution in production for the fully-electronic real estate and mortgage transaction, from the Point-of-Sale through to the County Recorder's office and the secondary mortgage market. The company's innovative workflow meets guidelines set by the E-Sign Act and UETA and supports both MISMO SMART Doc(r) and e-Signed PDF standards. The company offers a secure signing solution that provides document tamper sealing, roles and permissions access and extremely hack proof digital encryption algorithms that can authenticate the source of a digital signature as "valid" while providing one of the Industry's first certified e-Vaults. Settleware's lender clients have been recording documents electronically with electronic signatures in the Orange County, Calif. County Recorder's office since 2006. The company's low-cost, Web-based solution seamlessly connects all participants in the real estate/mortgage transaction, is vendor neutral and is offered either as a Software as a Service (SaaS) subscription basis or our Enterprise Edition for large institutions. For more information about Settleware, visit the company's website at www.settleware.com.

CONTACT:
Texell Media
Allison Smith
404-626-9969

Shameless Self Promotion

MEDIA RELEASE

Prime Processors, Inc. Rolls Out 100% Paperless Application-to-Close eMortgage Process in Florida

For more information contact: John Tattan
614.316.7871
jtattan@closingprime.com

July 12, 2007 - for immediate release--- Prime Processors, Inc., working with AmTrust Bank and Stewart Lender Services, has introduced the first completely paperless eMortgage loan process in Florida. Beginning in July 2007 this process will be available exclusively through the Prime Processors, Inc.

Using Stewart Lender Services SureClose software to track and sign Uniform Residential Loan Applications, RESPA disclosures, and other required documentation, the mortgage broker professional can cut the time it takes to originate a mortgage loan in half. Borrowers get the advantage of total transparency. From Stewart's website: "With SureClose, home buyers and sellers have immediate access to their real estate transaction documents the minute they become available. And, you can provide a seamless online home buying and selling experience-from listing to close."

Our vision for paperless lending is now at your fingertips, enabling you to close loans more profitably, efficiently and error-free! Because we've converted all legal closing documents to a digital format, borrowers can now electronically sign (eSign) the closing documents with the simple click of a mouse.

Using Prime Processors, Inc. as the catalyst, brokers in Florida will benefit from their strategic business relationships. To quote Director of Operations, Patrick Lawson, "Unique innovations in the mortgage processing industry have fueled this joint venture and will continue set the standard for how borrowers interact with their mortgage professionals."

To learn more about working with Prime Processors, Inc. contact John Tattan at 614-316-7871 and review related links below.

###

Related Links:

VIDEOS-
News footage of "hybrid" eClosing:

Overview of eProcess (created by MERS and Stewart): Depending on internet connection speed this video can take up to 5 min. to load.

Overview of Amtrust eSign:


PDF DOCUMENTS-

Overview of the eProcessing Service we provide:

Price list for Signature Pads:

Prime Processors Submission Form:

Prime Processors Processing Agreement:

Stewart FAQ:

Amtrust eSign Consumer Marketing Flyer:

Amtrust Broker Flyer:

MBA FAQ:

Freddie Mac Flyer:

Fannie Mae Flyer:

Govenor Crist: Why no eSignature?

This kind of momentous legislation deserves an eSignature on it, don’t you think?

CHAPTER 2007-233

Committee Substitute for
Committee Substitute for Senate Bill No. 2038

An act relating to real property electronic recording; creating s.
695.27, F.S.; providing a short title; providing definitions; providing
for the validity of electronic documents relating to real property;
providing for the recording of electronic documents by the county
recorder; granting the Department of State rulemaking authority;
creating the Electronic Recording Advisory Committee; providing
the committee with certain powers and duties; providing for membership
and meetings of the committee; providing that committee
members shall serve without compensation and may not claim per
diem and travel expenses from the Secretary of State; providing
guidelines for the department, in consultation with the committee,
to consider in adopting, amending, and repealing standards; providing
for the termination of the committee; providing for uniformity of
application and construction; specifying the relation to a federal act;
amending s. 201.01, F.S.; providing that such electronic documents
are subject to the same taxes as paper documents; amending s.
201.022, F.S.; providing for the electronic filing of certain required
returns; providing an effective date.

Be It Enacted by the Legislature of the State of Florida:

Section 1. Section 695.27, Florida Statutes, is created to read:

695.27 Uniform Real Property Electronic Recording Act.—

(1) SHORT TITLE.—This section may be cited as the “Uniform Real
Property Electronic Recording Act.”

(2) DEFINITIONS.—As used in this section:

(a) “Document” means information that is:

1. Inscribed on a tangible medium or that is stored in an electronic or
other medium and is retrievable in perceivable form; and

2. Eligible to be recorded in the Official Records, as defined in s. 28.222,
and maintained by a county recorder.

(b) “Electronic” means relating to technology having electrical, digital,
magnetic, wireless, optical, electromagnetic, or similar capabilities.

(c) “Electronic document” means a document that is received by a county
recorder in an electronic form.

(d) “Electronic signature” means an electronic sound, symbol, or process
that is executed or adopted by a person with the intent to sign the document
and is attached to or logically associated with a document such that, when
recorded, it is assigned the same document number or a consecutive page
number immediately following such document.

(e) “Person” means an individual, corporation, business trust, estate,
trust, partnership, limited liability company, association, joint venture, public
corporation, government or governmental subdivision, agency, instrumentality,
or any other legal or commercial entity.

(f) “State” means a state of the United States, the District of Columbia,
Puerto Rico, the United States Virgin Islands, or any territory or insular
possession subject to the jurisdiction of the United States.

(3) VALIDITY OF ELECTRONIC DOCUMENTS.—

(a) If a law requires, as a condition for recording, that a document be an
original, be on paper or another tangible medium, or be in writing, the
requirement is satisfied by an electronic document satisfying the requirements
of this section.

(b) If a law requires, as a condition for recording, that a document be
signed, the requirement is satisfied by an electronic signature.

(c) A requirement that a document or a signature associated with a
document be notarized, acknowledged, verified, witnessed, or made under
oath is satisfied if the electronic signature of the person authorized to perform
that act, and all other information required to be included, is attached
to or logically associated with the document or signature. A physical or
electronic image of a stamp, impression, or seal need not accompany an
electronic signature.

(4) RECORDING OF DOCUMENTS.—

(a) In this subsection, the term “paper document” means a document that
is received by the county recorder in a form that is not electronic.

(b) A county recorder:

1. Who implements any of the functions listed in this section shall do so
in compliance with standards established by rule by the Department of
State.

2. May receive, index, store, archive, and transmit electronic documents.

3. May provide for access to, and for search and retrieval of, documents
and information by electronic means.

4. Who accepts electronic documents for recording shall continue to accept
paper documents as authorized by state law and shall place entries for
both types of documents in the same index.

5. May convert paper documents accepted for recording into electronic
form.

6. May convert into electronic form information recorded before the
county recorder began to record electronic documents.

7. May agree with other officials of a state or a political subdivision
thereof, or of the United States, on procedures or processes to facilitate the
electronic satisfaction of prior approvals and conditions precedent to recording.

(5) ADMINISTRATION AND STANDARDS.—

(a) The Department of State, by rule pursuant to ss. 120.536(1) and
120.54, shall prescribe standards to implement this section in consultation
with the Electronic Recording Advisory Committee, which is hereby created.
The Florida Association of Court Clerks and Comptrollers shall provide
administrative support to the committee and technical support to the Department
of State and the committee at no charge. The committee shall
consist of nine members, as follows:

1. Five members appointed by the Florida Association of Court Clerks
and Comptrollers, one of whom must be an official from a large urban
charter county where the duty to maintain official records exists in a county
office other than the clerk of court or comptroller.

2. One attorney appointed by the Real Property, Probate and Trust Law
Section of The Florida Bar Association.

3. Two members appointed by the Florida Land Title Association.

4. One member appointed by the Florida Bankers Association.

(b) Appointed members shall serve a 1-year term. All initial terms shall
commence on the effective date of this act. Members shall serve until their
successors are appointed. An appointing authority may reappoint a member
for successive terms. A vacancy on the committee shall be filled in the same
manner in which the original appointment was made, and the term shall be
for the balance of the unexpired term.

(c) The first meeting of the committee shall be within 60 days of the
effective date of this act. Thereafter, the committee shall meet at the call of
the chair, but at least annually.

(d) The members of the committee shall serve without compensation and
shall not claim per diem and travel expenses from the Secretary of State.

(e) To keep the standards and practices of county recorders in this state
in harmony with the standards and practices of recording offices in other
jurisdictions that enact substantially this section and to keep the technology
used by county recorders in this state compatible with technology used by
recording offices in other jurisdictions that enact substantially this section,
the Department of State, in consultation with the committee, so far as is
consistent with the purposes, policies, and provisions of this section, in
adopting, amending, and repealing standards, shall consider:

1. Standards and practices of other jurisdictions.

2. The most recent standards adopted by national standard-setting bodies,
such as the Property Records Industry Association.

3. The views of interested persons and governmental officials and entities.

4. The needs of counties of varying size, population, and resources.

5. Standards requiring adequate information security protection to ensure
that electronic documents are accurate, authentic, adequately preserved,
and resistant to tampering.

(f) The committee shall terminate on July 1, 2010.

(6) UNIFORMITY OF APPLICATION AND CONSTRUCTION.—In applying
and construing this section, consideration must be given to the need
to promote uniformity of the law with respect to its subject matter among
states that enact it.

(7) RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND
NATIONAL COMMERCE ACT.—This section modifies, limits, and supersedes
the federal Electronic Signatures in Global and National Commerce
Act, 15 U.S.C. ss. 7001 et seq., but this section does not modify, limit, or
supersede s. 101(c) of that act, 15 U.S.C. s. 7001(c), or authorize electronic
delivery of any of the notices described in s. 103(b) of that act, 15 U.S.C. s.
7003(b).

Section 2. Section 201.01, Florida Statutes, is amended to read:

201.01 Documents taxable, generally.—There shall be levied, collected,
and paid the taxes specified in this chapter, for and in respect to the several
documents, bonds, debentures or certificates of stock and indebtedness, and
other documents, instruments, matters, writings, and things described in
the following sections, or for or in respect of the vellum, parchment, or paper,
or any other medium whether tangible, electronic, or otherwise, upon which
such document, instrument, matter, writing, or thing, or any of them, is
written, or printed, or created electronically or otherwise, by any person who
makes, signs, executes, issues, sells, removes, consigns, assigns, records, or
ships the same, or for whose benefit or use the same are made, signed,
executed, issued, sold, removed, consigned, assigned, recorded, or shipped
in the state. Unless exempt under s. 201.24 or under any state or federal law,
if the United States, the state, or any political subdivision of the state is a
party to a document taxable under this chapter, any tax specified in this
chapter shall be paid by a nonexempt party to the document. The documentary
stamp taxes shall be paid on all recordable instruments requiring
documentary stamp tax according to law, prior to recordation. With respect
to mortgages or trust deeds which do not incorporate the certificate of indebtedness,
a notation shall be made on the note or certificate that the tax
has been paid on the mortgage or trust deed.

Section 3. Subsections (1) and (3) of section 201.022, Florida Statutes, are
amended to read:

201.022 Consideration for realty; filing of return condition precedent to
recordation; penalty; compensation of clerks; failure to file does not impair
validity.—

(1) As a condition precedent to the recordation of any deed transferring
an interest in real property, the grantor or the grantee or agent for grantee
shall execute and file a return with the clerk of the circuit court, who may
accept the return electronically. The return shall state the actual consideration
paid for the interest in real property. The return shall state the parcel
identification number maintained by the county property appraiser in a
manner prescribed by the department. If the parcel is a split or cutout
parcel, the return shall state the parent parcel identification number if the
parcel identification number has not been assigned. The return shall not be
recorded or otherwise become a public record and shall be confidential as
provided by s. 193.074, and shall be exempt from the provisions of s.
119.07(1), except that the Department of Environmental Protection or,
through the Department of Environmental Protection, its contract appraiser,
shall have access to the return to verify the consideration paid in
any transfer of an interest in real property, when such transfer is considered
as part of an appraisal for a proposed land acquisition project conducted
pursuant to any Department of Environmental Protection land acquisition
program. The Department of Environmental Protection or its contract appraiser
shall not disclose the contents of the return to any other public or
private entity. The original return shall be forwarded to the Department of
Revenue, and a copy shall be forwarded to the property appraiser.

(3) If the return required by this section is not executed and filed, the
clerk of the circuit court is required to execute and file the return, on paper
or electronically, with the department. The clerk shall be compensated 1.0
percent of the tax paid on deeds as the cost of processing the return required
by this section in the form of a deduction from the amount of the tax due and
remitted by the clerk, and the department shall allow the deduction to the
clerk paying and remitting the tax in the manner provided by the department.
However, no deduction or allowance shall be granted when there is
a manifest failure to maintain proper records or make proper reports. The
compensation provided herein shall be in addition to that provided in s.
201.11(2).

Section 4. This act shall take effect upon becoming a law.

Approved by the Governor June 27, 2007.

Filed in Office Secretary of State June 27, 2007.

Signing Agents Running Scared

Internet becomes the new home for closing loans

By Bob Tedeschi N.Y Times News Service

Borrowers have used the Internet for years to shop for mortgages. Now a growing number are actually closing their loans online, too.

Companies like E-Loan, Wachovia and other big mortgage lenders have in recent months begun offering a service called ClosingStream, which allows borrowers to complete documents online for refinanced and home-equity loans.

Lenders say the process is more convenient, and less costly, for consumers, reducing closing fees by hundreds of dollars. The only question is whether demand for the service will spread beyond the tech-savvy crowd that has chiefly embraced it.

“Our sense is that the main customer for this will be a younger person, although I’ll tell you, I’m 54 and I’d be happy to do it this way," said Albert Verkuylen, the chief strategy officer of LSI in Santa Ana, Calif., the company that provides the ClosingStream system to lenders.

Lenders offer ClosingStream to borrowers after the loan terms have been agreed to. If the borrowers express an interest, a ClosingStream representative will call and explain the four-step process. The first step is for borrowers to log on to the ClosingStream Web site, where they supply personal information and answer security questions to help authenticate their identities.

Next, ClosingStream posts a personal identification number and a power-of-attorney document on the Web site for the borrowers to download and sign in front of a notary public. They mail in the document and then schedule a time to close the loan.

At the appointed time, the borrowers dial into a conference call set up by ClosingStream and log on to the private page of the company’s Web site that is devoted to their loan. If the borrowers are in a state that requires a lawyer to preside over the closing process, as in New York or Connecticut, ClosingStream will provide a lawyer to represent the borrowers.

For borrowers in other states, a title specialist from the company presides over the virtual meeting. In both cases, borrowers see live Webcam images of the lawyer or specialist on the computer screen.

During the closing process, which typically lasts less than an hour, the borrower’s representative posts the relevant pages of the closing document to the Web site, explains each page and then asks the borrower whether he or she understands and agrees to the terms. Each borrower clicks on the Web page indicating agreement.

At the end of the process, the borrowers agree to have ClosingStream’s representatives sign the loan documents on their behalf.

Verkuylen said that ClosingStream was closing about 1,000 loans a month online,/s80 percent of them refinanced mortgages.

Tom Medlin, a Wachovia vice president, said that the bank started offering the ClosingStream service last fall, and now 25 percent to 30 percent of its refinance and home-equity customers choose that option. “It just continues to pick up momentum," Medlin said.

In states where lawyers are required at mortgage closings, Medlin said, borrowers save $100 to $300 by closing online. “But more than anything, this is about convenience and the ability to not have to schedule time to meet at the attorney’s office or the title company’s office," he said.

“We’ve never had one complaint from a consumer about this."

Dan Schatt, an analyst at Celent, a Boston research and consulting firm, said that consumers were quickly migrating to online banking, but that when it came to mortgages, probably the biggest financial transactions in most people’s lifetimes, many remained leery. “Most borrowers would still rather have a face to deal with during this process," Schatt said. “But that’ll gradually change in the mortgage world."

Paperless eMortgages: Where is Al Gore?

You may have heard of paperless mortgages. You can fill out and sign your loan application and disclosures online. Provide PDF copies of W2's, tax returns, bank statements and proof of insurance. You can even sign the loan closing documents online using eSign technology.

While the paperless process most defiantly can speed up the loan process, in particular the loan closing time which can be cut to as little as 10 min, the real benefit is in cost and environmental savings. So where is our environmental champion Al Gore?

It is estimated that the average mortgage loan generates over 500 pieces of paper. If you have ever completed a real estate transaction you have surely reviewed and signed a mountain of paper...and that mountain of closing documents is only a portion of the documents generated and filed in the average mortgage transaction.

Try this academic exercise:

• As a rule of thumb an acre of forested land may yield an average of 10-15 cords of wood when harvested at maturity.
• A cord of wood is approximately 8 feet wide, 4 feet deep, and 4 feet high. A cord of air-dried, dense hardwood (oak, hickory, etc.) weighs roughly 2 tons, about 15-20 percent of which is water.
• A 500-sheet ream of 20-pound bond paper weighs 5 pounds.
• There are over 14 Million loan transactions per year...representing over 7 Billion pieces of paper!

It has been estimated that one cord of this wood will yield one of these approximate quantities of products:
• 1,000-2,000 pounds of paper (depending on the process)
• 942 100-page, hard-cover books
• 61,370 No. 10 business envelopes
• 4,384,000 commemorative-sized postage stamps
• 460,000 personal checks
• 1,200 copies of National Geographic
• 2,700 copies of an average daily newspaper

Additionally, an 1,800 square foot home requires about 10,000 board feet of lumber (roughly equal to about 20 cords of wood)

So, what effect would a paperless eMortgage mandate have?

1. You could save 7,000 acres of forested land.
2. You could provide 65,940,000 100 page hard cover text books for the nations school children.
3. You could provide the lumber for 3,500 low income 1,800 sq. feet homes.

Maybe Al Gore is more interested in the melting ice caps than the nations forests and mortgages. But, you can request that your mortgage broker or real estate agent provide you with a paperless transaction.

You can follow this link (www.closingprime.com/videos/stewartmers.avi) to view a great video on the paperless process. Note: The video is about 10 min. long and depending on your Internet connection speed it may take 3-5 min. to load, so be patient.