Closing Changes as a Result of the CFPB

by | Oct 23, 2015 | Legal Tips

Many of you may already have noticed increased security in closing attorney offices. This is a direct result of the changes due to TRID and Best Practices.  Lenders are now deemed liable for any compromise of confidential client information.  Closing attorneys have access and possession of client information including social security numbers, bank account numbers, birth dates, etc.  Most of this information is contained on the Form 1003-Loan Application. If this information were to be compromised someone could use the information to create a false identity.

Lenders and title insurance companies, therefore, want to insure that the closing attorney has appropriate protocols in place to secure the client’s sensitive information. You should already be seeing closing attorneys limiting physical access to their offices. You may be limited to the conference room and lobby. Attorney’s offices will also have less paper files and will be required to lock all files when the person is away from their desk or closed at the end of the day.  It is likely you will not be able to meet with a paralegal at their desk as the paralegal is likely to have client information in their possession. You may also see an increase in encrypted emails and security cameras.  While we all hate the loss of the personal touch, fraud is rampant and the Consumer Financial Protection Bureau (CFPB) is in place to help curb fraud as much as possible.

I continue our series of Columbia historical facts. The final bill stipulating that Columbia was to become the state capital was ratified on March 22, 1786. In addition, the bill dealt with the formation of the town. In that sense, Columbia was one of the first planned towns in the United States. The town was designed to be two square miles with two principal streets 150 feet wide. The two streets, named in honor of the legislative bodies, were Assembly and Senate. The remaining  streets were to be 100 feet wide and spaced ten streets per mile. The town would total 400 square blocks in a rectangular design.  Today, you can easily notice the square block design in the area surrounding the capital grounds.

Have a great weekend.

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