India Passes Legislation on Privacy Issues and Offshoring
An interesting article pertaining to the offshoring of Public records has just been written for Chief Information Officers . It appears that after 100 years of little regulation, and with a rapidly growing data entry industry, India has decided to create some protections and is finally looking at Privacy Issues and problems. Recently much of the U.S. business of data entry has been moved to Indian, the Philippines and China, where labor is less expensive. Many in the U.S. have been concerned that their private business is being spread around the globe, making them subject to more identity theft issues. The privacy laws could make it a bit more of a challenge for U.S. companies to outsource the public records used so commonly in the Title Insurance Industry. Here is an article from CIO that gives 7 tips to prepare for India’s Privacy Rules.
Private and Public Records – Benefits
By: Darity Welsey
We have all heard about the perils of posting our personal information online. There’s privacy violations, identity theft and credit card fraud just to name a few. What about finding a way that data can benefit us?
It’s seems appropriate that we ought to be able to utilize the vast amounts of information about our likes and dislikes that companies, we most likely haven’t even heard of, have collected about us. And they ought to offer it to us in a format that is easy to download and export to another website for our own purposes.
Don’t we have a right to access data about ourselves? The British government thinks so and they have announced an initiative called ‘mydata.’ The plan calls for asking businesses to provide British consumers with their information in a computer-friendly manner.
There are many ways that we can take our collected data and benefit from it. Comparison shopping for products and services like cell phone service plans, insurance providers, or car rentals would be a breeze. Just download your data from your current provider, analyze it a bit if you want, and upload it into an application or website that will show you what may be your best choice.
Facebook has already taken a proactive stand for you and your data. You can preserve your Facebook content with a one button download tool. You just go to Account Settings-Download Your Information and click on the green Download button. When I did it, there was a message that said it would take a little while and they would send me an email. About two hours later I got an email saying my download was ready. I clicked on the link and downloaded my information. That feature makes it easy to preserve my information for my personal use.
Look for ways that you can use your data for your benefit. It seems like there will be scores of valuable applications and websites which will help you be a better, smarter shopper, like many of the travel and other comparison sites that are out there now. This will help keep businesses on their toes, striving to provide superior products and services, since they know that they will be showing up right next to the competition. Personal data access may be a great boon for the economy and it may be the best thing that has happened for consumers in a long time.
Thanks Darity! Darity Wesley is CEO and Legal Counsel for Privacy Solutions, Inc. a San Diego based consulting firm. You can always reach Darity at Darity@PrivacyGurus.com or 619-670-9462.
Proposal for a Federal Land Title Depository – My Opinion
Having spend most of my adult life working in the land title industry, I was very pleased to find a thoughtful report on the American Land Title Recording System in the Columbia Law review:
Tanya Marsh, Foreclosures and the Failure of the American Land Title Recording System, 111 COLUM. L. REV. SIDEBAR 19 (2011)
I was pleased, not so much because I believed in her suggestion that implementing a Federal System would be an answer to our current system, but rather because I applaud the research, investigation and thought process in analyzing our public recording systems. It makes my brain “tick” – how better could this whole recording system work? It is not often that anyone notices us.
Ms Marsh says:
The recent announcement that major lenders were suspending pending foreclosure actions in the wake of questions about their documentation practices has focused attention on another opaque system that has failed to keep pace with the increasing complexity of the modern real estate industry: the American land title system.
I have mixed feelings on that quote. After all, the system was working quite well before a specific group decided to start a separate system of recording mortgage assignments. But, you say, “times change, and mortgages are no longer mom and dad local customers borrowing from the local bank. Mortgages are now big business commodities, where packages of millions of dollars of mortgages are sold in packages to investors who no longer collect the payments. They do not have a 100% interest in the land – just fractionalized interest in the mortgage. And they certainly have no interest in the local economy.”
I personally, believe that the MERS change was not driven by failure to “keep pace with the increasing complexity of the modern real estate industry,” but was driven rather by a business opportunity for making corporate profits. After all, recording mortgage assignments requires much specialized local knowledge – not the mass handling that big business is used to. Consider the inexperienced staff, asked to record thousands of mortgage assignments. They grouped them by state and sent all mortgage assignments for one state to the same county for filing- OOOPS. Yes, recording requires specific knowledge. It is time consuming. It is expensive, and fees vary from location to location. In theory, recording assignments “under the covers” dozens of times saves lots and time and money. It would be much more efficient. It could be a very profitable business.
As Ms. Marsh points out, land record recording has always been a “local business” meaning that customs, fees, rules and regulations for recording are a hassle. But land titles ARE a “local business” in that each state has it’s own real estate law. Foreclosures are driven by those state laws, and changing to a Federal System would only complicate things even more. A Federal System would require a complete revamping of all existing state laws and possibly the US constitution, as real estate laws currently fall under the auspices of each respective state.
There are other considerations. What about all those judgment searches. State and Federal Tax Liens, Child Support Liens, Court Judgments, etc. They are all maintained in the same local, county systems we know so well. As a title person, we know that those 3000 separate county offices mean that a common name is somewhat manageable when searching those names. After all, we can’t reference their SSN as that would be an identity theft problem. A Federal System would be an absolute disaster. And the States and Feds acknowledge that the only way they are able to collect those State and Federal Liens are through our current recording system.
She Says:
Although many local recorders have viewed MERS with suspicion, a number of state courts have expressly permitted the recording of mortgages with MERS. Some courts and other observers, however, are concerned that the legal fiction of MERS’s status as the “mortgagee of record,” when it holds no beneficial interest in the property, is irreconcilable with [STATE- added for emphasis] mortgage law.
I agree with that statement. MERS did not anticipate the complexity of 50 distinct state foreclosure laws, or the definition, state by state, of “Nominee” vs. “Assignee” or the change in the market. Yes, I agree that … a private MERS-like system is not the answer.
But what is the answer? I can’t agree with the statements that “the federal government should implement a solution that replaces … the existing local land title system…” When has a bigger government done a better job than the locals? But I love the dream ideas that:
- Indexes should not be limited to the names of the parties, the type of conveyance, a legal description, and the date of recording, etc.
- Conveyance documents could be identified with limitless data, including cross-referencing to prior conveyances.
- Imagine integrating property tax records, subdivision plats, and recorded documents with a dynamic map. How fabulous would that be!
Ms Marsh ends with: “I do not lightly suggest that we abandon 370 years of precedent. But the residential foreclosure crisis, and the role of MERS, demonstrates that the American land title system is broken. The time has come for a radical reinvention that meets the needs of the modern real estate industry.”
I love the passion, research and inspiration behind her work, but as a day to day title practitioner, author and teacher of land titles, I know the problem is much more complex than she imagines. I can dream about the possibilities, but I can’t wrap my head around how to accomplish a better land title world. Your comments are welcome.
Privacy on the Internet –
I suggest you look at this site. It shows how easy it is to get names, addresses, hobbies, date of birth, family members and much more personal information on you. It appears to collect information from various online sites for content and of course for a fee. It makes me want to be more careful about what I say and where I say it Linked-In, Facebook, Twitter, etc. It also shows that the sites are NOT perfect and one should be very careful NOT to rely on them for information. http://www.spokeo.com/
Title Work sent to India
As many of us know, Land Records in the US are now routinely sent to India and the Philippines to be input into our computerized public land records.This is a video of some vintage (14 months old) showing the progress of one India firm with over 600 employees doing over 100 processes in all 50 states it says. An interesting overview for all in the title industry, showing the growth in outsourcing the title industry overseas and the many companies involved. See video at UTube here.
What is the Internet Saying About YOU?
Read this very good article on Public Records, by the Wall Street Journal Post. Learn how records about you are accessed, who accesses them, who sells the information and why. All of us need to learn to keep an eye on what we say and what is being said about us. Our good name is of utmost importance to those of us who value honest, ethical, credible people. So take a good look at this article and see how the internet and personal data collection affects your good name. It’s an education.
I Respect Your Privacy
I have recently sent out several emails about upcoming classes. I don’t hold classes all that often, and I have given up the expense of printing, folding, stuffing, addressing, stamping and mailing out course information in favor of email. A sign of the modern age, I guess. But I want everyone to know that I respect and value our relationship as friends, colleagues and customers. I do not and will not give out your information to anyone. A couple of recent well-thought-out and well-decided court cases brought this to mind.
In FenF, LLC vs. Healio Health, Inc, the court held that a provision from an agreement entered into between FenF and Healio Health that required Healio to transfer certain customer information to FenF was unenforceable, because doing so would result in a violation of Healio’s written privacy policy. While Healio agreed to transfer to FenF certain customer lists containing customer information it had promised in its privacy policy that it would not share its customers’ information with third parties.
The court reasoned that “[a]llowing Plaintiff to obtain that information without any type of notice to the customers would result in manifest unfairness to those customers, who are not a party to this action and may very well have conditioned their purchases from Healio Health based on that company’s promise to keep their customer information confidential.” Read More at Lexology
Teaching: It Ain’t What It Used To Be
I’m feeling very old. I was talking to a class about privacy in dealing with personal information, and how land lines are secure where cell phones are not secure. One youngster raised his hand and politely asked “What is a land line?” The world continues to change, and as educators we’d better get used to it. Beloit College in Wisconsin put out its annual Mindset List of how today’s college students view the world. It is a perspective that is hardly imaginable to me. For example:
DNA fingerprinting and maps of the human genome have always existed.
The first computer they probably touched was an Apple II and is now in a museum.
Cursive writing is a thing of the past with computers and texting….
Watches have been replaced by clocks on cell phones…. WOW
The list is meant to remind teachers that cultural references familiar to them might draw blank stares from college freshmen born mostly in 1992. Of course, it can also have the unintended consequence of making people, like me, feel old.
Fidelity Settles FTC’s Complaint of Anti-Competition Due to Purchase of Title Plants, Subject to Public Comment
July 17, 2010
WASHINGTON, July 16 — The Federal Trade Commission issued the following news release:
To settle Federal Trade Commission charges that its 2008 acquisition of three LandAmerica Financial, Inc. subsidiaries was anticompetitive, Fidelity National Financial, Inc. will sell several title plants and related assets in the Portland, Oregon, and Detroit, Michigan, metropolitan areas, and in four other Oregon counties.
Title plants are databases used by abstractors, title insurers, title insurance agents, and others to determine the ownership of, and interests in, real property in connection with underwriting and issuance of title insurance policies and for other purposes.
According to the FTC, Fidelity’s acquisition of the LandAmerica assets was anticompetitive in several local markets for the provision of title insurance information services by title plants.
The FTC’s complaint charges the acquisition reduced competition in six geographic areas: 1) the Portland, Oregon, metropolitan area, consisting of Clackamas, Multnomah, and Washington counties; 2) Benton County, Oregon; 3) Jackson County, Oregon; 4) Marion County, Oregon; 5) Linn County, Oregon; and 6) the Detroit, Michigan, metropolitan area consisting of Oakland, Macomb, and Wayne counties.
In the Portland, Oregon, area, the complaint alleges the acquisition left Fidelity with a controlling interest in the title plant that is the sole provider of title insurance information services. In the three other Oregon counties, the acquisition reduced the number of independent title plants from four to three.
In the Detroit metropolitan area, the FTC contends the acquisition may give Fidelity the power to affect the competitive significance of Data Trace, an independent title services provider, and the only firm in these counties other than Fidelity with a complete and up-to-date title plant.
The FTC’s proposed settlement order will replace the competition lost through Fidelity’s acquisition of LandAmerica’s title insurance subsidiaries. First, it requires Fidelity to sell part of its ownership in the joint title plant in Portland, Oregon, to Northwest Title. This will ensure Fidelity does not own a majority of the only title plant serving the Portland market.
Second, it requires Fidelity to sell a copy of the data from each of the title plants serving Oregon’s Benton, Jackson, Linn, and Marion counties to Northwest Title. This will restore the number of independent title plant owners in each county to four – the same number as before the acquisition.
Third, the proposed order requires Fidelity to sell a copy of the title data in the three Detroit-area counties that LandAmerica provided to Data Trace before the acquisition to an FTC-approved buyer. This will limit Fidelity’s ability to affect the competitive significance of Data Trace, an ability that Fidelity gained through its acquisition LandAmerica’s assets.
Finally, the order requires Fidelity to notify the FTC before acquiring 50 percent or more of any joint title plant in California, Colorado, Nevada, New Mexico, Oregon, and Texas – states where Fidelity’s acquisition of LandAmerica’s subsidiaries has increased Fidelity’s ownership interest in title plants.
The FTC vote approving the complaint and proposed settlement order was 5-0. The order will be subject to public comment for 30 days, until August 16, 2010, after which the Commission will decide whether to make it final. Comments should be sent to: FTC, Office of the Secretary, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. To submit a comment electronically, please click on: https://public.commentworks.com/ftc/fidelitynationalfinancial.
NOTE: The Commission issues a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The issuance of a complaint is not a finding or ruling that the respondent has violated the law. A consent agreement is for settlement purposes only and does not constitute an admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.
Copies of the complaint, consent order, and an analysis to aid in public comment can be found on the FTC’s website at http://www.ftc.gov The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to antitrust@ftc.gov, or write to the Office of Policy and Coordination, Room 383, Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Ave, N.W., Washington, DC 20580. To learn more about the Bureau of Competition, read “Competition Counts” at http://www.ftc.gov/competitioncounts.
Your Copy Machine Stores Private Information
by: Darity Wesley, Privacy Gurus
Closers and Title Insurers Beware! We habdle lots of private information. Here’s the latest in potential identity theft horrors- CBS News broke a story in April that will probably have a portion of your life passing before your eyes. Are you ready to review? Okay, here goes. Everything that you have copied since 2002 was likely stored on a hard drive in that copier. If that’s not mind boggling enough, when those old copiers were traded in for new ones, the hard drives most likely were not wiped clean of its history. Since most used office equipment is resold when traded in, whoever may have purchased that old copier could fairly easily access the data stored on that hard drive.
That means all of the personally identifiable information ever copied by and for you is likely still available and out there in a world beyond your control. Certainly with the potential problems and liability revealed by this story, many copier hard drives are being scrubbed as you read this. To see the full story, watch this CBS News segment Copy Machines, a Security Risk?
Since that story was broken, steps have quickly been taken to address this behemoth of a problem. According to a letter from Federal Trade Commission (FTC) Chairman Jon Leibowitz to U.S. Representative Edward Markey, “The FTC is now reaching out to copier manufacturers, resellers and retail copy and office supply stores to ensure that they are aware of the privacy risks associated with digital copiers…”
Most major manufacturers offer security or encryption packages to address this problem however many companies have not chosen this option in the past. Companies like Digital Copier Security, Inc., the firm that provided information to CBS News, also offer solutions to abate this threat.
To protect yourself:
* Do all of your sensitive copying, scanning and faxing at home. It is worth the investment in a personal piece of equipment for privacy peace of mind.
* After having an item with your personally identifiable information on it copied away from home, like at a medical facility, be sure to ask that the record of that copy is deleted (sometimes called cleared) from the hard drive.
* Check you credit report for suspicious items to make sure your identity has not been hijacked and your credit negatively impacted without your knowledge. You are entitled to a free credit report annually and this website has no strings attached unlike many others.
Now more than ever it is essential to stay aware and alert to shield yourself and your family from nefarious activity.
Home Closing 101: An Educational Initiative of the American Land Title Association
