Posted by grapebed on 2/18/12 5:51pm
Msg #412275

E-mailing final docs to borrower???

I have had a couple of clients request that I email the final docs after the closing as opposed to giving them the actual physical package of docs at the closing table.

Is this acceptable? Or is there some sort of requirement that the borrower leave the closing docs in hand.

Thanks for your responses.

Reply by VT_Syrup on 2/18/12 5:56pm
Msg #412276

The federal ESIGN law requires that the consumer consent in a particular
way before required documents may be provided in electronic form. I'm
sure the lender or title company would have a hissy-fit if they found out
a notary was deciding which documents were or were not required, and
whether the consumer had consented in the correct manner.

Reply by bob/IA on 2/18/12 5:56pm
Msg #412277

Many times in the instructions for the signing it specifically states not to email copies of the docs to the borrower without specific permission of title/lender. Best bet would be to check with whoever hired you.

Reply by Don Courtney on 2/18/12 6:11pm
Msg #412278

Standard E-mail is not considered a secure method to send documents. All large corporations that I worked for prior to hanging out my notary shingle required password protected documents. Most large signing services do as well.

I would be hesitant to take on the liability that someone could intercept the docs for identity theft purposes.

Reply by 101livescan on 2/18/12 6:17pm
Msg #412279

FYI one of my clients sent this email alert to its approved signing agents.

Notice to Signing Agents (Notaries, Attorneys, Title Companies and Signing Firms) Who Perform Notary Signing Services for XYZ Title Company and its Subsidiaries



In performing signing services for XYZ, your role as a contracted signing agent requires that you receive and handle loan documents in a manner that safeguards the privacy of confidential information for both the consumer and lender. As a signing agent, you are liable for any and all damages that might result from lost or stolen information. Failure to follow the XYZ policies stated below will result in XYZ taking steps to deactivate your active status. XYZ requires the following:

· XYZ forwards loan documents to you using secure document transport protocols. Do not forward loan documents sent to you by XYZ to anyone, including the borrower or lender, via email or via postal service.

o The loan documents are to be printed and hand-carried by you to the loan closing.

o Do not provide the borrower document copies on a jump drive (aka thumb drive), CD or any other type of media transfer device.

o Please advise if a borrower asks for an electronic copy.

· Loan documents should remain in your possession. Do not leave them unattended at any time. Store loan documents in the locked trunk if they must be left in a vehicle for a brief period.

· If the closing occurs in a bank branch, do not hand loan documents to another party to copy or fax unless that party has express rights and permissions from the borrower regarding that transaction. Also, do not allow non-borrowing parties to attend a closing without express permission from the borrower(s). This includes other branch personnel for possible “training purposes”.

· When providing a second set of copies to the borrower, do not hand them to a third party for transport.

· Do not leave the borrower’s copies in the borrower’s mailbox, porch, or under the welcome mat.

· Do not drop loan documents in a “drop box” unless absolutely necessary. Utilize a UPS Store, FedEx Office, or any general express mail service store.

o Request a written receipt including the tracking number.

o Regular UPS franchise stores will scan the loan packages and give you a receipt. You must have evidence of this receipt in the event of an incident.

o If a UPS/FedEx authorized store refuses to give you a receipt, please have the store clerk sign and date a copy of the LSI shipping label. This serves as the receipt that you delivered the package to the store and shifts responsibility of the package to the store in the event it ends up “missing” or “untraceable.”

o Please keep a copy of the shipping label and the receipt for your records.

Reply by Barb25 on 2/18/12 7:09pm
Msg #412280

While those instruction are clearly specific to that title company, it certainly gives food for thought as to things we might do without even thinking about it. I received some of my docs on websites, some secure emails, and some plain ole email. And to be perfectly honest as care as I am about most things (and to tell the truth, I can't remember when and if I was ever in 10 yeas I was asked to email the docs), I am not sure I would have given it the thought is deserved.

Any I guess the best thing is to tell the borrower to request that the lender send the documents by secure email to them for all the reasons mentioned.

Reply by JanetK_CA on 2/18/12 7:56pm
Msg #412283

Good info. Thanks for sharing this, Cheryl! n/m

Reply by GOLDGIRL/CA on 2/18/12 8:39pm
Msg #412288

Thanks for posting, Cheryl

This provides much to think about .... I esp. liked the part about loan docs being in our possession at all times. This puts the kabosh on borrowers who want to run to the other room to copy all signed docs. No way. Also, I liked the part about when signing at a bank branch and not allowing third parties to hijack docs. On a similar note, seems every time I signed at a Realtors office, they practically pull the docs out of my hands before I even sit down . No way. They were always stunned. I'd say they need permission from the borrowers. And O don't allow them to run off and copy signed docs .. now the LO is another matter.

Anyway, I'm perplexed why they say no CDs or thumbdrives. I wonder what that has to do with security? Please, all, let's not start another firestorm about paper vs CDs; I'm trying to focus on why LSI would not consider those as "secure" as paper? I'm also surprised they allow dropping docs at any "express mail service store." There's certainly no security there.

Anyway, I get a lot of docs from Web sites ... but there's still plenty of plain ole e-mailed docs.

As far as e-security, the horse has already left the barn and looks like everybody's playing catchup.

Reply by VT_Syrup on 2/19/12 10:53am
Msg #412315

Re: Thanks for posting, Cheryl

GOLDGIRL/CA asked "Anyway, I'm perplexed why they say no CDs or thumbdrives. I wonder what that has to do with security?" One possibility is that it isn't about security, despite all the security warnings in the text. It might have to do with ESIGN compliance. Another possibility is XYZ worries the borrower might not be capable of properly securing their computer, and the information might be pilfered from the borrowers computer. Some people really are clueless and/or indifferent when it comes to computer security.

Reply by GOLDGIRL/CA on 2/19/12 12:57pm
Msg #412319

I think you are absolutely correct on both counts, VT.

It's not a security issue at all; it's an e-issue:

When a mobile notary hands a borrower their copy of docs on a CD, flashdrive or other e-instrument (or forwards it to them via e-mail), it tells everybody that everything on that instrument (or everything that is being forwarded to them) is on a computer somewhere.

Lenders and TCs want to continue the illusion that we're still in the horseless carriage age - that two sets of docs were made from some Xerox machine at a bank somewhere, that the mobile notary picked them up at a real-live building with guards out front and people wearing business suits inside and that once the signed loan copy is returned and filed, all their private information is contained and secure and that the borrower can file away their paper copy in the hall closet and all is right with the world. (LOL, here).

Now, NSAs are being hauled into the picture to complete the illusion of privacy by forbidding the use of e-anything when dealing with the borrowers, thus taking their minds off e-technology and acting like we just rode in on our horse with their paper copies secure in our saddlepacks. BTW: Don't ever admit to a borrower you got their docs by e-mail. Savvy borrowers ask this because they know exactly what it means. Always say you used a "secure Web site" even though you were just e-mailed them from a SS that also runs a dog-food business.

Lenders, TCs, and SSs have been embracing the e-world for at least 10-15 years and up until now now have not given a hoot about borrower privacy but are doing so now only to cover their you-know whats and because the govt is on their case (thanks for posting the E-Act a few days ago, too, VT). The privacy horse has long left the barn and now we're seeing all these band-aid, stop-gap measures, such as the LSI proclamation that Cheryl posted (which does have several good common sense rules on the handling of paper docs, BTW.)

I think it's fine we're being included in all this CYA stuff now but the problem started with lenders, Realtors and TCs embracing e-technology without considering the whole picture and it needs to be put at their door. Still, someday this will all be dust under the rug.

Reply by MW/VA on 2/19/12 10:47am
Msg #412314

Thanks, Cheryl. :-) That's important info. I provide a

paper copy of the docs to the borrowers, because that's what I've always been instructed to do.
If they want an electronic copy, IMO they would need to request that of the lender or tc. It's not my call to make. I've heard of several notaries who are routinely providing the copy on CD, thinking it's a cost saving measure for them. That's a legal landmine, IMO.

Reply by LKT/CA on 2/18/12 8:06pm
Msg #412284

<<<I have had a couple of clients request that I email the final docs after the closing as opposed to giving them the actual physical package of docs at the closing table. Is this acceptable?>>>

I would tell the borrower that the manner in which they receive their copies is decided (and approved) by the title company and there's more to emailing loan documents than simply hitting the "forward" button. In order to protect their privacy and safeguard confidential information, the title company emails loan documents using secure document transport protocols. So if they wish to have an emailed copy of their loan docs, they must contact the title company.