Posted by Art_MD on 3/10/13 3:28pm
Msg #460406

Gramm -Leach question

I'm applying for a home loan.
Lender has tax transcripts, 1099s etc.
Asked if I kept a business log - which I do.
He hasn't asked for a copy, but may.
Sooo
Log includes, date, name, address, SS or TC name, fee, date paid mileage etc.
Is the name, date, address protected under Gramm Leach ?? Where I have concern is that until the mortgage is recorded, any info about a person applying for a mortgage is protected under G-L. Once it's recorded,name, address and date becomes public record, its no longer "non-public " information. BUT if a refi doesn't go thru - no sign, or something after the fact - i.e. the borrower exercises right to recind, the info is still "non-public" and protected by G-L.
Since I don't know if a refi was recorded, I would have to treat ALL info as protected by G-l.

Anyone read the law differently?

TIA

Art_MD

Reply by 101livescan on 3/10/13 3:39pm
Msg #460410

Art, wonder why your general ledger, P&L wouldn't suffice. Seems like that is paramount to opening your journal, which is private and confidential. I keep all my signings in an excel spreadsheet so that I can compare week by week, month by month, year by year, but whose business is it to know our borrowers' names? Is it just me?

US Patriot Act, Privacy Act, not sharing borrowers information, all that stuff in addition to G L.

Reply by Linda_H/FL on 3/10/13 4:11pm
Msg #460413

Yeah..why in the world does the lender want your

journal? That makes NO sense - and technically, should they be relying on your "log"? They should be relying on your tax returns & profit & loss statements.

SMH

Reply by John Tennant on 3/10/13 4:45pm
Msg #460415

Re: Yeah..why in the world does the lender want your

Linda is totally correct. How, where, when you conduct your business is none of their business unless you are investigated for an illegal operation. All of the info you have noted is confidential. JMHO

Reply by sigtogo/OR on 3/10/13 6:43pm
Msg #460432

agreed, tax returns and P&L. I wouldn't give the 1099 either

since 1099 aren't indicative of total income.

Reply by Melissa Stroh on 3/11/13 9:54am
Msg #460500

Re: agreed, tax returns and P&L. I wouldn't give the 1099 either

1099's are required, as they are part of the tax returns. In order to qualify your income, lenders require all pages and all schedules to tax returns. Whatever makes up your reported income (K1's, W2, 1099, etc.) - those attachements are part of the returns and the lender needs them to make sure they are qualifying you using your *reported income*. If your 1099's don't add up to or are less than the reported income and the lender does not address it, then the lender is in big trouble.

Reply by sueharke on 3/10/13 8:54pm
Msg #460446

Writing this response as a CPA and notary. I am not allowed to give third parties client information as a CPA for completed tax returns unless it is subpoed (?sp) by the courts, IRS, or other taxing agency. I would just give them your balance sheet, Income statement that summarizes your transactions for the respective year.

I would say that I have agree to not disclose the other information you are requesting to a SS, TC, or lender for privacy reasons. Also, notary law does not allow disclosure of this type of information.

Reply by John Tennant on 3/10/13 9:38pm
Msg #460458

Absolutely right on, as usual.

Reply by jojo_MN on 3/10/13 10:04pm
Msg #460465

I keep my information on an Excel spread sheet.
Column headings are:
Date of Signing
Borrower last name
Signing location address
Miles driven
Number of notarized documents
Total signatures
Total exempt $$
Total Fee
Date of Payment
FedEx/UPS tracking number.

When doing my taxes I delete the following columns: Bwr last name, Address and tracking number
I then save version this for my tax files. This is the one I would send in with my loan application.

I would never give journal without a court order.

Reply by Melissa Stroh on 3/11/13 9:45am
Msg #460498

What they want is a YTD P&L. They want this to see if your current income lines up with what you've reported for 2012 and 2011. The don't want to see your customers, they want to confrim your income.
Self employed borrowers qualify with 2 years self employment and they calculate your income by dividing it over 24 months. Some lenders may require 3 years, but income is calculated the same way -it's called ANNUALIZED. Some lenders will make an exception to the 2 years (18 months) with compensating factors. If you have been self employed 18 months, they will still average it over 24 months to see if you qualify.