Secure file sharing and sensitive data protection?

[John B.]

Lenders, brokers, and other professionals collecting sensitive data - how are you accomplishing client data collection and sharing in a secure way? I've searched BP and most posts about this issue are a few years old at least, so I'm hoping to get some insight from others who do this regularly. Please keep in mind I'm still in the "planning" phase of lending so this may be a basic question... I'm also going to be transacting a very low volume (2-4 loans a year for the first few years).

In my experience operating a service business, Docusign was a great tool to get sensitive documents shared and signed. But in the lending space, we may need to collect W2s, paystubs, bank statements and the like, and I'm thinking it might be easiest for clients to send a lot of it via smartphone photos.

Docusign wouldn't work for this, and I have concerns about the true security of Dropbox and similar cloud storage (contact support for any of these providers and the support person almost always has complete access to your files - doesn't feel secure enough to me for storing borrower social security numbers or statements with bank account numbers visible).

In researching how other private lenders are operating, I see many of them have custom websites with (assumed) encrypted backends - as a small lender, the cost of custom web presence is prohibitive and probably unnecessary until I reach a higher deal flow.

So am I overthinking this aspect? Does anyone have experience with an affordable and dependable service? Thanks!

[Patrick Roberts]

Depends on your tech stack. If youre using a dedicated origination platform like Baseline, TMO, Mortgage Automator, etc, then I believe they have add-ons for this. Another option would be to contract with a third party cybersecurity provider for this and related services. My provider is currently revamping my setup to provide a secure document storage and sharing service that is standalone from other programs as part of the services they provide, in addition to other cybersecurity measures. Also, check with insurance agent on your liability/E&O policies on this topic - they may have certain requirements as well.

For esigning, adobesign and simplifile are popular.