Posted by eboughey on 10/27/06 11:41am
Msg #155513

Title Companies insisting on Background Checks

I just spoke with an Attorney for the FTC in Washington this morning. She was not aware of any new issues regarding the GLBA or the requirement for notaries to be screened. In fact, she was thankful for the new information though and will be looking into it personally.


I pulled the following information and the GLBA bill states that:

Although the GLBA law is complex, and has many specific regulations, the following issues are critical for addressing the Act, and achieving compliance:

Identify whether or not your business is covered by GLBA. If it is, where does your current security and privacy of customer data stand?

**** To insure compliance, the first step that must be taken is to assess current security and operations. To adequately address this assessment, additional data security technology solutions may be required, including multi-level authentication, Public Key Infrastructure, Virtual Private Networks, updated Security Policies, and Business Continuity/Disaster Recovery Plans. ****

So my response to the title companies would be "Are you sending out files (ie. PDF, tif, etc) without any encryption that any hijacker can get a hold of? If so, you are not in compliance with the GLBA. "

Even better would for all notaries to require title companies to send their files encrypted so that they are in compliance with the GLBA...

This is an issue that needs to be resolved as well if they require background screenings from notaries. I wonder if the title companies have opened up a can of worms...

Reply by Charles_Ca on 10/27/06 12:03pm
Msg #155519

Even better yet, ask the scheduler who calls you for proof

of their compliance with the Privacy Security Laws and to provide you with objective evidence that they comply as well as a compy of their porcedures. That way you can be assured that the securiy is continuous through the chain of personnel handling sensitive private documents.

Reply by eboughey on 10/27/06 12:14pm
Msg #155523

Re: Even better yet, ask the scheduler who calls you for proof

absolutely Charles.

I am just as concerned about the borrower's privacy and security of the documents as the borrowers are. I shred any documents if a signing falls through or new docs are sent after I've printed them and I keep documents out of sight after they are printed as well until the signing.

As a notary, I am sure that the state conducted a screening before giving me credentials as a public official acting in a trustworthy capacity. Being a notary IS being confidential and trustworthy of another person's privacy. Why all the fuss now?

Reply by Charles_Ca on 10/27/06 12:21pm
Msg #155526

I have no problems with the notaries, most of the notaries

I have known have had somekind of background in finance and range in commission from recommendations from citizens, politicians, all the way to serious background checks from the States they are comissioned in. The problems I have are the Signing Services and their personnel. I have run into many more signing services who have exhibited lack of concern for anything financial than I have notaries. Since I believe that the notaries are checked much more carefully than the Signing Service I believe that the signing services are much more the obvious security and credit risk. Heck a lot of them don't even pay their bills.

Reply by Raimond on 10/27/06 12:24pm
Msg #155530

Re: I have no problems with the notaries, most of the notari

And sometimes the SS will send docs to the wrong SA!

How secure is that?

Reply by Sylvia_FL on 10/27/06 12:27pm
Msg #155533

Re: I have no problems with the notaries, most of the notari

Usually it is the title company who ship the docs out.

The ones that I have concerns about are the signing agents who think it is OK to send the docs to Kinko's or other office stores to have them printed out.

Reply by Stamper_WI on 10/27/06 12:57pm
Msg #155547

Sylvia

We just got our first Kinko's and I asked them about that. I decided that if I ever had to use them I would go down with the doc's on a disc. I also have another notary I network with and have printed doc's for her when her internet went down.

Reply by Charles_Ca on 10/27/06 12:57pm
Msg #155548

I agree Sylvia but then there are the companies who require

fax-backs, they are handling vital information and should be secured! So unless an SS can gurantee never to handle private financial documentation they should have a procedure inplace and have thier personnel have background checks. I see this area as probably the most insecure int he chaen.

Reply by LkArrowhd/CA on 10/27/06 1:53pm
Msg #155563

Re: eboughey-This is an excellent point, we got dinged

a few years ago due to sending student's social security number to Sac along with other personal data, one must report to maintain a grant....... the socials were encrypted in no time....

Reply by TitleGalCA on 10/27/06 10:15pm
Msg #155657

Sadly, it is easier for TC's and Lenders to jump on a bandwagon that suggests greater protection, rather than researching the real facts. There are many things going on in the background.

I am with Notary Rotary and their very wise statements in regard to the issue. WAIT. Don't react, and don't give away your hard-earned money to benefit an organization that is for profit. There are other for-profit companies that are equally capable providing what TC's and Lenders (think) they need. It is a matter of educating the originators of such a request - if that request ever happened, and that isn't a fact yet.... to my knowledge.

Oh, one other thought.......all my posts here on NR are my personal opinion only and aren't based on any facts at all, nor any attachment or involvement to the issue at hand.

(Dang, that was pretty good, huh?)

Reply by David Kral on 10/28/06 2:26am
Msg #155698

Weak links

So Title companies send data encrypted. Then, it goes through an express carrier unencrypted and can be lost? Rare, but it can happen.

Why don't they just mask the data as some companies are doing. We match the last four digits to the social security card. Or copy down part on a drivers license. Then even the Notaries would not be in full possession of the confidential data.