Posted by BarbaraL_CA on 10/18/06 11:17pm
Msg #153510

FWIW my thoughts on protecting consumer private information

In regards to protecting consumer's private information, it has occured to me that edocs we receive in pdf or word format (or as a file) is not secure. Look at MargaretFL who's email was hacked today - who has access to those loan files that may have been sent in her email? Actually, any attachment that is not encrypted is at risk over the internet. Now I know we are all responsible and delete loan files from our computer when we're done with them, but suppose we don't and our computer gets hacked. Of course we all have Firewalls and Security software, but what if we don't? Do the SS's, Title Co's, Loan Co's, etc. have measures to ensure that your computer is "hack free", that you deleted loan files, etc? NO!

On the otherhand loan documents are safer when you have to log into a secure site to print them, and you don't download them to your computer. You would think that it be a requirement that loan documents containing all that private, personal information can only be accessed through a secure site, not thru a file attachment to an email!

Just my thoughts, FWIW.

Reply by ReneeK_MI on 10/19/06 3:11am
Msg #153546

We may see some processes change due to this

I've worked for a handful of lenders, and I think it would be a pretty safe assumption (I could easily be wrong, though) that their processes would be representative of what is typical. In order to secure closing documents, they all used document prep companies (like Guardian Mtg Docs, for example).

Those 'doc prep' companies import the data from the Lender's and produce the actual closing documents, insuring that process (Lenders love that part - insurance). Then, docs are uploaded to a website where they can then be downloaded while using encryption measures to secure their safety.

The Settlement Agent is entrusted as the entity that downloads them. The Lender has procedures in place to ensure those parties - they do 'bgc' on Settlement Agents, they monitor their financial standings, E&O, etc. They obtain "Closing Protection Letters" for each loan (a letter from the Settlement Agent's UNDERWRITER , dated/signed, confirming the insuring of that loan closing procedure)

MANY OF THOSE SAFEGUARDS go to hell in a handbasket after THAT point. It's pretty common to see the Settlement Agent download, then scan & e-mail the pkg. or letting a SS download & e-mail. They are absorbing the liability there, as far as my own NON-LEGAL opinion goes - since THEY are insuring the closing process, and THEY are breaching the security measures the Lender's put in place.

Since the insurance industry ebbs & flows according to risks and losses, there must not have been sufficient risk/loss resulting from these procedures ... according to THEIR actuarial tables. That's what I'd have to assume. But ... I also don't think there's widespread realization (or admittance?) of these less-than-secure procedures. I think it's been a cutting-of-corners in the name of practicality. Also known as flying by the seat of their pants.

Reply by PJM/MI on 10/19/06 4:52am
Msg #153554

Re: We may see some processes change due to this

Last yr, my #1 TC had their entire computer network hacked. Ouch.

Reply by jba/fl on 10/19/06 4:15pm
Msg #153721

Re: We may see some processes change due to this

My fav. TC also was hacked, now they sometimes send password to their site in my closing confirmation - careless.