Dear Readers,
Much has been said about lender angst regarding their liability for third party service providers. What are they most concerned about? Data and escrow security.
During the American Land Title Association Business Strategies Conference, Penny Reed, vice president of settlement services from Wells Fargo Home Mortgage, and Linda Elkins with BancFirst Corp., talked honestly about the topic.
“Our customer sees you as the one explaining, going over charges and distributing their money, and if that doesn’t go well, it’s a direct reflection on our company,” Elkins said. “There is high risk there. We go through this period of trying new title companies, approving them through our process, and there is a reputational risk there if we choose wrong.”
Reed agreed, focusing her thoughts on the reputational harm a data breach at a title company would cause.
“If you’re [the title agent] working 1,000 closings and seven of them are ours, and if your office is broken into and that data ends up in someone’s hands, the headline will say ‘Wells Fargo’s data stolen,’ so we are cautious about that,” Reed said.
In the coming weeks, we will be exploring data security and steps agents can take to make sure consumers’ personal information is secure. Look for more insight in our next edition.
Also, in the coming weeks, look for a special report on good funds, one way to address the other major concern of lenders and regulators alike — escrow security. We look at best practices agent should have in place, as well as how states have been addressing
good funds issues.
Until next time, stay legal.
Andrea Golby, editor
The Legal Description