Posted by Merritt Services, Inc. on 12/7/11 8:13pm
Msg #406006

Photo IDs

Lenders are not funding without copies of the borrower's Photo ID and now we have been advised that certain counties in Alabama will not even record DOT or Note without copy of Photo ID. Just an FYI.

Reply by Ilene C. Seidel on 12/8/11 5:29am
Msg #406016

Rarely do I see no photo id required in return package. All should carry a cheap camera in briefcase just in case. Should be part of the closing process, always!

Reply by CopperheadVA on 12/8/11 7:07am
Msg #406017

I work with several companies that only require that the customer ID form be filled out with info from the ID. I have other companies that want a copy of the photo ID, but they do not put that in their instructions at all. Of course since I work with them regularly, I know that they want it and I collect it, but if the hiring party wants a copy of the ID they should let the borrower know when scheduling the appointment, and also clearly put it in the notary confirmation. Some companies do request it but only put the request in with the docs that you receive last minute, and sometimes they ask for a copy of two forms of ID. All that should be told up front on the confirmation.

I do carry a camera with me but rarely have to use it. I ask people if they have a way to make a copy at their house, and to have it ready for me when I arrive. I would say that about 95% of the time they have it ready. Sometimes they make the copy while I'm there. And then of course once in a while I have people that don't get the copy made and don't have a way to do it at their house, and want me to wait while they go to the copy store. That's when I get my camera out.

Reply by SharonMN on 12/8/11 11:41am
Msg #406036

I seem to recall that some southern lender got in trouble for discriminating against African-Americans a few years ago (charging higher interest rates and fees, etc.) and as a result their policy is NOT to review photo ID. I assume they have title fill out an ID certificate instead.

Reply by desktopfull on 12/8/11 12:03pm
Msg #406050

I remember Chase changing their policy on ids a few years ago and forbidding anyone to make a copy of borrower's id and you had to sign a statement to that effect. If you sent them a copy they wouldn't pay you.

Reply by JAM/CA on 12/8/11 12:34pm
Msg #406057

The lender, when collecting all other documents from the borrower, should also request a copy of their I.D. Then compare the I.D. to the name on docs. This would prevent expired, incorrect I.D. when we get there. Many times I am told, "I've already sent a copy of my I.D. to the lender".

Of course, I know I'm dreaming.

Reply by MichaelB/IL on 12/8/11 2:04pm
Msg #406063

It's often the title company that needs the ID for their records.

Reply by JAM/CA on 12/8/11 2:16pm
Msg #406065

Then have the lender send their copy to the title company.

Reply by Saul Leibowitz on 12/8/11 11:09pm
Msg #406113

Getting the lender's copy to the tc won't prove/identify who was present in front of the closer. When I ran a title co. my underwriters insisted that I have copies of id in each closed file and we didn't want to rely on the lender. The lender will accept the copy the tc collected through its closer, but not the other way.

Reply by Victoria_NJ on 12/9/11 6:47pm
Msg #406178

Title Companies and IDs

The Lender is PROHIBITED from sending copies of the borrower's IDs to the title agent under the new ID theft laws.

However, the Title Agency still needs to have copies of IDs presented at closing and sent back to them along with an Affidavit of Title and ID form in order to cross check signatures, etc. as well as the Notary also needs to ID the borrower.

The title agency typically retains those IDs in THEIR file only and the Lender does not get a copy.

This is typical to non-escrow states where the title agency is also acting as the settlement/escrow agent and is solely responsible for all acts taken place at closing.

It may be different to West Coast and escrow states where the title agency and escrow service are 2 separate entities.