The Statement of Information:

There Really Is a Reason!
As Notary Signing Agents conducting mobile loan closings, we frequently encounter the Statement of Information form included in loan packages. It's one of the documents that often prompts borrowers to ask questions about why they are being asked to provide such personal and sensitive information.
While our primary role as Certified Notary Signing Agents is to identify the signers, witness signatures, and notarize documents such as affidavits, deeds, and mortgages, borrowers naturally look to us for guidance. Whether they're refinancing, purchasing, or selling a home, they often expect us to understand the purpose of the documents they're signing. The Statement of Information is one of the forms that generates the most questions.
Although we cannot provide legal advice or interpret loan documents, we can offer general information to help borrowers understand why this form is requested and direct them to their loan officer, escrow officer, title officer, or the California Land Title Association (CLTA) for additional information.
Why Is a Statement of Information Required?When a title company examines the title to real property, it must determine whether any recorded matters—such as judgments, bankruptcies, tax liens, or divorces—affect the buyer, seller, or borrower. Because many people share the same or similar names, the title company needs additional identifying information to distinguish the parties involved in the transaction from others with similar names.
In California, this process is especially important due to community property laws, which may also require information about a spouse when applicable.
In fact, the California Association of REALTORS® (CAR) Residential Purchase Agreement requires the seller to provide a Statement of Information to the escrow holder within seven days of acceptance.
What Does the Statement of Information Do?A Statement of Information is routinely requested whenever title insurance is being issued. The information provided allows the title company to determine whether recorded documents belong to the parties involved in the transaction or to someone else with the same or a similar name.
Every day, documents affecting real property—including liens, court judgments, bankruptcies, and other public records—are recorded. When a title company discovers one of these records matching a buyer's, seller's, or borrower's name, it must determine whether that record actually applies to the person in the transaction.
​A properly completed Statement of Information helps eliminate unnecessary concerns, protects all parties involved, and allows the title company to complete its work accurately and efficiently without unnecessary delays.
What Information Is Requested?While requirements may vary slightly, borrowers are typically asked to provide information such as:

• Full legal name
  
• Last four digits of their Social Security number
  
• Driver's license number
  
• Year of birth
  
• Date of marriage (if applicable)
  
• Information regarding previous marriages (if applicable)
  
• Residential history for the past 10 years
  
• Employment history for the past 10 years
  

What Happens If the Form Isn't Completed?Failure to provide a Statement of Information can significantly delay the title search and the issuance of the title insurance policy. In some cases, it may even delay the closing of escrow.
Without the information needed to distinguish individuals with similar names, the title company may have no choice but to list judgments, liens, or other recorded matters as exceptions to coverage—even if they belong to someone else. Those exceptions are often unacceptable to lenders, whose interests must also be insured.
As Notary Signing Agents...Our responsibility is not to advise borrowers on legal matters but to help them understand the general purpose of the documents they're signing while remaining within the scope of our role. Providing factual, educational information and directing borrowers to the appropriate professionals helps build confidence and makes the signing experience smoother for everyone involved.
Disclaimer: This information is provided for general educational purposes only and should not be construed as legal, tax, or investment advice. While the information is believed to be accurate and obtained from reliable sources, every transaction is unique. Borrowers should consult their loan officer, escrow officer, title officer, attorney, or other qualified professional regarding their specific circumstances.
http://www.clta.org/page/Consumer11/Understanding-Statements-of-Information.htm

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