DocMagic currently includes the Borrower Certification and Authorization (Form ID: TDC.LSR) in all FHA initial and closing document packages. That form allows the lender to obtain personal information from the borrower and other sources to verify their application and to use that information in the lending process. Based on feedback from HUD, DocMagic will be adding a new disclosure to all FHA transactions on June 3, 2019, that specifically allows use of information protected under the Privacy Act of 1974, using that specific language. The Borrower Authorization for Use of Information Protected Under the Privacy Act (Form ID: BAUIPUPA.MSC) will automatically appear in all FHA initial and closing packages processed as of the date above. The new form will specifically and clearly satisfy the requirement in the HUD Handbook 4000.1, Section II.A.1.a.1.D., for obtaining authorization for use of the borrower’s information protected under the Privacy Act.
