This is one of those things that really bugs me about the title insurance business. Beyond the broad federal privacy laws there are no rules that govern how we guard YOUR most private financial data. There are no guidelines for storage or disposal. Doesn't that bug you, too, as a consumer?
Add to that - even operating with privacy laws, your information may go to parties who are not subject to licensure and may have been subjected to little or no vetting. That's even more disconcerting to me.
Consider this. When you apply for a mortgage loan, you provide your full employment information, all or most of your banking accounts and your outstanding debts. All of this information, along with your residence, marital status and social security number is typed onto a form 1003, the uniform residential loan application.
This 1003 form and often attached exhibits such as tax returns or bank or credit statements are given to the title insurance agent as part of the closing documents, usually so that you can sign these documents at the closing.
If the title insurance agents uses its own employees to conduct the closing, these documents at least do not leave their care. If however, the title insurance agent uses notary signing agents who are not employees, these documents containing your full financial data move into the care of yet another entity who is in most states not licensed.
Even when dealing directly with one of the super large title underwriters you may experience your data moving to such an unlicensed entity or even overseas - off shore - for processing.
Now that I've explained how your most private personal financial information can move about, I'd like to tell you how our office, The Closing Specialists, handles this information.
1. We only use on staff, fully trained and well experienced, closers.
2. We hire a secure shredding service to routinely pick up trash that contains sensitive information. We have shredding disposal boxes on every floor excepts the main floor which is open to the public so that employees can easily dispose of document copies or faxes which do no move into your permanent file.
3. Your full permanent file is retained in our on-site storage until it is scanned and then it is also given to the secure shredding service.
4. Your scanned documents may only be accessed by an employee. Requests coming in from outside of our office are screened by a manager. Requests must be in writing and the party making the request must meet privacy law requirements for access before a document is released.
5. Off site backups of this data are stored in a bank safe deposit box.
6. When we have a need for a hardware repair or upgrade to the system in which this data is stored, the work takes place on site and the old equipment is retained by us and stored in a locked room which can only be accessed by management.
We take our role as custodian and guardian of your personal data very seriously. Frankly, I don't even think we ought to have access to this information as it isn't really a part of the title insurance transaction however, for now mortgage lenders don't see this as a security risk and so since we receive the data and we recognize ourselves that it IS a security risk, we guard your data.
So, when you are deciding between title insurance agents, think about how you guard YOUR personal information and then realize that your choice of title insurance agent is a part of that security plan.