Posted by CF on 5/20/09 12:00pm
Msg #289302

Social Security Card Requests

Why does a lender think that they can require a borrower to provide a copy of their social security card? IMO- this should be illegal. I would never provide such a thing to anyone- let alone a lender. My biggest grip....is that this request has been on the increase. Many people do not even have one- it has been lost/ misplaced over the years. Additionally, most of the packages that request this have the Social Security Administration Verification Form in the package. If they are going to verify it that way- then why require the borrower to provvide a copy? I have had most borrowers refuse to provide a copy of it. I just move on....I am not wasting my time, energy, and effort on it. If the lender needs it- then they can deal with the borrowers direct to get it. Just my opinion- has anyone else experienced an increase in this request?

Reply by PAW on 5/20/09 12:12pm
Msg #289303

A lender is required to obtain the social security number(s) of the borrowers. How that number is verified is either by (1) proof by copy of a social security card issued by the SSA, or (2) signing an authorization by the borrower to allow the lender to contact the SSA to verify the SSN provided on the form. Usually, the former (i.e., copy of card) is taken, but more and more I see the SSN Verification Authorization being used, especially in new home purchases.

Reply by MW/VA on 5/20/09 12:31pm
Msg #289304

It's also pretty much SOP for FHA mortgages. The ss card is something people aren't usually required to have, won't carry with them because of the identity fraud issues, and often they have no idea where it is. It also cracks me up that the gov. issues a paper card that is supposed to last a lifetime. IMO it's time for a different kind of card to be issued.

Reply by Jim/AL on 5/20/09 12:31pm
Msg #289305

Agree with Paul. SS# is always in the docs anyway, why

would obtaining a copy be a problem? If they do not have or cannot find then just notify the TC or SS and they will instruct.

Reply by Glenn Strickler on 5/20/09 2:16pm
Msg #289312

I have actually had a decrease in these requests

Over the 6 years I have been doing this, about 50% of the time, the copies have been requested, mostly with the sub-prime loans. After the shake up of the recent times, I am only doing it about 20% of the time. Usually, the BO knows about it ahead of time.

As far as blowing off the instruction when given by the lender, do you want to give them a reason to either cut your pay or refuse to pay you at all?

Reply by CF on 5/20/09 3:55pm
Msg #289320

Re: I have actually had a decrease in these requests

I am not blowing anything off! If a borrower does not have it- they do not have it. In 5 years I have never lost pay or been cut pay for not having a copy of the SS card returned in a package. I am not wasting my time at the table (my profitability) calling around and adding on time to the signing...waiting for this person or that person to respond.

My post was to inquire if anyone was noticing an increase for the request.

It would seem to me that it should be a part of their loan application process. If this is a lender requirment then they should have this before I get to the table and start wasting my time on it.

Reply by Glenn Strickler on 5/20/09 4:11pm
Msg #289330

Re: I have actually had a decrease in these requests

I guess I read your post too fast ... Shame on me. If they don't have a copy, then I take a picture with my phone or digital camera and print it out for them.

I think the reason that they want the notary to send the copies is that the notary is often the only human that the BO's see during the process and someone has to verify the BO's identity. That's why we go there in the first place. Otherwise, anyone could fax or send a copy of anyone's id with the right name on on it and how would a TC or lender in Texas know the proper identity of the BO in California.

Reply by pcooper on 5/20/09 8:00pm
Msg #289374

I have seen a decrease but I have attributed it to the SS verification systems becoming more robust. The only time I have seen them actually request the SS card is when the verification system came back with errors or flags. I have only seen one time it was a problem. The borrower did produce an SS card but the name was not a perfect match. The lender would not accept an AKA or any other explanation. As it turned out, the borrower was sharing an identity with some friends and the SS card was what tripped them up.

Reply by doglover/CA on 5/20/09 10:16pm
Msg #289415

I have had a couple requests for SS card along with a primary ID like the driver's license from one lender. But they also give the option of presenting a copy of some other type of secondary ID like a passport or utility bill. In both cases, the borrowers opted for the alternate form of secondary ID.