In the wake of recent cyberattacks and security breaches that have affected our industry, lending institutions have heightened their security protocols to protect borrowers’ data and privacy. Often, a lender will not provide information about a borrower without his or her written permission. A signed Borrower’s Authorization provides that permission for representatives of reQuire to engage with a mortgage lender or servicer on behalf of the borrower.

At reQuire, we have found that including a Borrower’s Authorization form as part of every closing package amounts to a best practice and, in fact, accomplishes the following three goals:

1. It shows that the borrower is a reQuire client and wants reQuire to track the Mortgage Lien Release. Establishing this relationship with reQuire’s client avoids issues that would otherwise arise concerning the applicability of RESPA and State government regulations related to how the release tracking or other fees should be charged.
2. It provides reQuire with documentary evidence that it can give to lenders authorizing reQuire to get access to borrower information necessary to assure a Mortgage Lien Release is filed in the land records. Because of the heightened security protocols and concern for privacy mandated by applicable law, many lenders refuse to provide any information to reQuire without the Borrower’s Authorization.
3. If the mortgage to be released is a Line of Credit that has not been closed properly, the signed authorization enables the lender to close it and provide the appropriate Mortgage Lien Release.

When submitting requests for release tracking services to a third-party provider, a signed Borrower’s Authorization expediates the process for every party.

FAQ

Why do we need a Borrower’s Authorization now?
Many Lenders have tightened their processes due to security and privacy protocols. There are several lenders that will not accept emails or calls from third-party providers without a signed Borrower’s Authorization.

Can we use our own existing Borrower’s Authorization rather than a third-party provider form?
If you’re working with reQuire, we will accept an existing Borrower Authorization form as long as it is signed by the borrower(s) associated with the lien that needs to be released and clearly states that reQuire can act on behalf of those borrower(s).

Why is there an “opt-out” section on the form?
Some States require that borrowers are provided the option to opt-out of additional fees, like release tracking. Your provider should be helping you remain compliant in all States. If you would like additional guidance on the release tracking requirements of your State, please reach out to us.

Why should I include a Borrower’s Authorization as part of my closing documents?
Unfortunately, if the Lender will not respond to inquiries without a Borrower’s Authorization, we are limited in the action we can take to track lien releases. If a Borrower’s Authorization is signed at the time of closing, it will prevent your office from having to go back to your borrower later and request they sign the document. No borrower wants a delay, especially not to sign more paperwork!

Do I need a Borrower’s Authorization for Title Curative work?
If the cloud on title that needs to be cured is for the borrower(s) or seller(s) of the current transaction, then, in most cases, yes! Having your borrower’s authorization will help resolve curative issues quickly. However, many times, the curative issue is for a previous owner of the property, and the borrower(s) is likely not easily located to sign an authorization.

If you have questions about your closing process or documentation and want to explore how reQuire can help, get it touch today!

About the Authors

Linda Aparo
Linda is the National Director of Sales & Business Development at reQuire, a Covius Solution, and has more than 37+ years of experience in the title insurance and real estate industry working with underwriters and agencies in different states. Linda was the Founder and CEO of Final Trac, a leading release tracking company before its acquisition by reQuire. She received her National Title Professional designation in 2017 and participates on the Membership Committee, Best Practices Work Group, MISMO Liaison Work Group, and the Research and Analytics Committee for ALTA. She is also a licensed real estate agent in Massachusetts and Connecticut. Linda is the co-author of the eBook “Life of the Mortgage Loan, A Playbook” and speaks nationally about her eBook and the importance of first lien position in the title industry.

Lionel J, Postic
Lionel is an attorney licensed in the States of Georgia, Florida, and Michigan. He has 40 years of legal experience. From 2012 through 2018, Lionel was the General Counsel of reQuire and continues he relationship with reQuire and Covius as outside counsel.