Posted by Anonymous on 12/10/04 10:46pm
Msg #13308

can we get copy of ID's

I was told that we could not get copies of borrowers ID is this correct.

Reply by BrendaTX on 12/10/04 10:55pm
Msg #13311

Please elaborate

Where did you get your information?

Are you indicating a general rule, or something that applies to one situation.

Reply by Anonymous on 12/10/04 11:00pm
Msg #13314

Re: Please elaborate

I believe irs a general rule. I have seen that recent title companies have been adding a form thats asks you to print in the information of the id. i went to a signing for a man that worked with world savings and I advised him that he needed to give me a copy of the drivers license and he said that it was againt the law to do that and that.

Reply by BrendaTX on 12/10/04 11:05pm
Msg #13315

Re: Please elaborate

Thank you for that explanation. I will watch for responses.

Reply by Donna_CA on 12/10/04 11:30pm
Msg #13316

Re: Please elaborate

As a new notary with my first signing tomorrow, that would be the last thing I'd want to do. For those who believe this practice is wrong, is there a legal reference?

Reply by Roger/OH on 12/11/04 12:19am
Msg #13322

Re: Please elaborate

A significant number of lenders require borrowers to furnish a photocopy of a photo ID, and in some cases two pieces. Many of them use the Patriot Act as their basis. If the borrower refuses to comply, they may not get the loan. As noted, other just require you to confirm the ID and complete a form with the identifying information. Read your instructions for guidance.

Reply by Jon on 12/11/04 12:28am
Msg #13325

Re: Please elaborate

While I don't know which ones, there are some states that have laws against making copies of a DL. I have read it on several boards.

Reply by Serina/VT on 12/11/04 7:06am
Msg #13328

Patriot Act

If you read the patriot act paperwork that comes with some loans you will see that the Patriot Act requires financial institutions to verify the identity of anyone opening any acounts with them. That applies from the teenager opening thier 1st checking account all the way to Ma and Pa refinancing the farm with a bank they have never done business with.

Reply by PAW Notary Services on 12/11/04 8:39am
Msg #13334

Re: Patriot Act

While consumer identification for financial institutions is not new, the USA Patriots Act establish definitive guidelines for institutions to follow. Banks, lenders, etc., have developed their own CIPs (Consumer Identification Procedures) to comply with those guidelines. Some lenders want copies of IDs (where it is legal to make copies), others just need a form filled out and signed by the "agent" completing the form, and some what a form filled out, signed by the consumer and signatures notarized by a Notary Public.

As for copying Driver's Licenses, since the CIP requirements of the Patriot Act and implementing regulations do not require the photocopies, they cannot trump state law or regulations forbidding such copies. It should be noted that if a bank's CIP includes a photocopy requirement the bank should be certain to verify whether its program will violate state law.

I have been told that there may be a state law in some states that forbid the copying of the DL. If anyone has confirmation on this, and can forward it to me, citing the state code, I can compile a list and publish it according. So far, I have not received any supporting citing of such laws. (This is not to say they don't exist, just that no one has provided that information to me.)

Reply by Dotti_CA on 12/11/04 11:58am
Msg #13339

Re: Patriot Act

This issue is actually the same one I brought up a month or so ago when I questioned whether we should be requesting copies of both DLs and SScards. In my opinion if the lenders internal records require copies instead of the certification by the Notary that they have personally viewed and checked the IDs then I believe the lender should be the one to request and take possession of them prior to even starting their document process. At the very least, the request for the copies should come in writing from the lender.

I don't have a problem with the Patriot Act, I have a problem with the Notary being the requestor. And by the way, if my lender requested copies of my IDs they would only receive them registered mail and would be required to agree to be liable for any misuse.

Reply by Loretta Reed on 12/11/04 10:44pm
Msg #13367

Re: Patriot Act

Here in Maryland, 99% of my closings require a copy of ID's from the borrower(s) now. A letter attached also says that if they do not furnish this on the day of the signing or within the 3 days of the right to cancel, that their loan will not fund until the id is received. I have never had a problem and if they do not have the id when I arrive, they always say that they will fax it to the lender. I do wish that the broker would tell the borrower before I arrive and not wait for me to contact them and let them know. That is not my job.

Reply by VA757Notary on 12/16/04 8:26am
Msg #13786

Re: Patriot Act

I have the same pet peeve about title companies not informing the borrower that they will need the original and a copy of their ID. Most people are a little confused when I ask for a copy and then at the signing I ask for the original also.