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#989816 - 07/08/08 05:28 PM Must we have a Borrower's Auth to release a p/o?
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
A borrower calls and asks us to fax a payoff statement to a title company for her loan. Loan processor told her it's law that we must have a Borrower's Authprization form to release a loan payoff (due to privacy).

1) Is this true? If so, where can I find it documented?

Besides, if a borrower calls and we can verify it's our borrower, can we go ahead and do it?

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Lending Compliance
#989898 - 07/08/08 06:03 PM Re: Must we have a Borrower's Auth to release a p/o? Many Hats
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,422
Bloomington, IN
It may be policy but it's not law. However with the privacy issues today it is a best practice. If you have ID procedures in place to identify customers over the phone, and good documentation the ID procedures were performed, I see no reason you could not release the PO.
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The opinions expressed are mine and they are not to be taken as legal advice.

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