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#2260609 - 10/01/21 08:07 PM Verification of Mortgage
ComplyCycle Offline
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ComplyCycle
Joined: Dec 2014
Posts: 385
Hi, a question has been posed to me that I've never considered. Are we obligated for any reason to provide a verification of mortgage upon request? Furthermore, does the fact that the loan is or is not paid off factor into the analysis as to whether or not we must provide a verification of mortgage?

I do not believe the paid off status would impact anything. I also believe we should be providing a verification of mortgage, but I am struggling to find any regulatory/other reason as to why that is. Any help is appreciated.

Thank you.

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Lending Compliance
#2260611 - 10/01/21 08:27 PM Re: Verification of Mortgage ComplyCycle
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,922
Galveston, TX
Not unless you would be obligated under State law, but under what circumstance would you refuse? It is an all or none situation. If you say no - you have to say no regardless of "how good" your customer might be.
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#2260612 - 10/01/21 08:28 PM Re: Verification of Mortgage ComplyCycle
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,702
Bloomington, IN
There is nothing on the Federal level that I am aware of that would require you to provide a direct mortgage verification to another lender. Honestly I didn't even know they were still requested.

Some states do however require you to provide a timely and accurate payoff statement.
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#2260615 - 10/01/21 09:06 PM Re: Verification of Mortgage ComplyCycle
Rocky P Offline
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Joined: Jun 2003
Posts: 7,377
Florida
If the bank is hesitant, tell them that lending is reported to the credit bureau(s) for consistency.
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#2260618 - 10/01/21 09:19 PM Re: Verification of Mortgage ComplyCycle
ComplyCycle Offline
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ComplyCycle
Joined: Dec 2014
Posts: 385
Thank you all. That is very helpful.

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#2260621 - 10/01/21 09:29 PM Re: Verification of Mortgage ComplyCycle
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,466
On the Net
Just remember that what goes around, comes around. If you ask for info, you may not get it. But realistically if it is tying up resources unnecessarily and there is no gain, just say "we report to the XYZ bureau" if that is where they need to go. But what do you do if your borrower says, "here is what I'm doing and they need to talk to my lender..." Be prepared.
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