HE STEADY integration of E-commerce formats into most every field of commerce has been no less warmly embraced by the secondary mortgage market. Rate fluctuations have prompted residential mortgagors to repeatedly refinance their mortgage debt, both first and equity mortgage products. The shear volume of these transactions, with mortgages moving in and out, back and forth from originators, loan servicers and investors has in some cases choked the traditional public recording system used to record such transfers. Added to this exceptionally high level of mortgage refinancing activity is that mortgages are packaged and sold into investment pools, the servicing rights to which are frequently transferred.
Traditionally, when a lender transfers an interest in a mortgage obligation it will prepare a written assignment document and have that document recorded with the local county recorder. Certainly this is not a daunting task when dealing with one or even a few mortgages. However, we can assume that mortgage portfolios contain hundreds of mortgage loans covering properties located not only throughout New York state, but also around the country. Moreover, this massive paper chase is repeated each time new mortgages are created and mortgage portfolios are sold and servicing rights are transferred.
