Mortgages Analyzed
Mortgages Analyzed
Mortgages Analyzed
 
Communications Log

What is Communications Log?

Communications Log

Communications log is a document that contains the summary of communications with the borrower and other parties in a transaction. The purpose of the log is to maintain a record of providing or receiving information and the nature and type of communication. It can be used to document conversations via phone, email, in-person contact, written, etc. A separate communication log should be maintained for each loan within the loan file itself.

Most modern origination and servicing platforms implement an electronic version of the communication log. Depending on the system, it may be maintained for each borrower or for each loan and includes details such as person who was contacted, nature of communication, and time stamp. Some systems also record system generated messages such as transmittal of statements, notices, emails, and other communications. While record of making a phone call would be maintained, the actual phone conversation is not maintained.

Telephone Log

Telephone log is a document containing the summary of telephone communications with the borrower and other parties in a transaction. It is a type of a communication log that documents telephone conversations to help maintain a record of providing or receiving certain information in connection with a loan file.

Source :www.MortgagesAnalyzed.com

Benefits of a Communications Log

  1. Understanding Loan Transaction: The log may provide information that may not be apparent from the loan documents itself and helps to tie in all the pieces of the transaction. A number of negotiations and clarifications over the phone or email and this log would explain why and upon whose insistence the transaction was structured.
  2. Compliance and Audit: The log can be used to document when disclosures are provided orally through telephone or in-person. The log may also be used to document when disclosures were mailed out.
  3. Evidence: In courts the log may act as evidence of providing or receiving information relevant to a transaction. However, it for it to be used as evidence, the log must be reliable and relevant.
  4. Dispute Resolution: In case of any misunderstanding, the communication log may be helping in determining the chain of events.
Source :www.MortgagesAnalyzed.com

Content of a Communications Log

  1. Person contacted
  2. Employee making contact
  3. Method of contact (voicemail, email, phone, etc.)
  4. Date and time of making the communication
  5. Communication summary
Source :www.MortgagesAnalyzed.com

Best Practices for the Loan Originator

Maintaining the Communications Log

  1. Include All Communications: Maintain an entry for all types of communications, even when leaving a voice mail or talking to a family member of the contact.
  2. Be Prompt: Maintain the log immediately after the communication to ensure that the information is captured when it is fresh in the mind of the employee making contact.
  3. Don't Overwrite: Do not overwrite, strike, or erase existing information. For corrections make a new entry in the log and just make a note next to the original entry referencing the correction. For electronic systems, do not allow a person to delete/edit the records from the log. If corrections are needed, then add a subsequent one for correction.

Recordkeeping

Communications Log should be maintained along with the loan file and for as long as the loan is outstanding.

Source :www.MortgagesAnalyzed.com
 

Document Summary

 
Communications Log
Purpose
To maintain a record of nature and type communications with borrowers or third parties
Use in Mortgages
It is used to document all communications with the borrower and third parties for customer service, compliance, and legal purposes
Other Names
Telephone Log, when used only to record of telephone conversations
Type
Log
Provided By
Not Applicable. It is maintained by the loan originator, lender, or servicer
Provided To
Not Applicable
Notarization Required
No
Signed By
None
Life Cycle Stage
Entire life cycle
Recordkeeping
Not required by law but we recommend maintaining the log for entire period while the loan is open
Model Form
None
Applicable Laws
None

Sample Documents

  1. Sample Communications Log

Updated: Feb 17, 2013

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This document contains the summary of communications with the borrower and other parties in a transaction
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