I don't normally deal with this so it seemed a little unusual to me but here's the question.....Isn't asset/account verification usually done before the day of loan closing?

Example: someone is purchasing a home or refinancing their home, the loan is set for closing but at the last minute on the day of closing, the mortgage company wants, by phone may I add, verification that a person whose name was added to an account does in fact have an account and wants to verify his social security number.

Something about this just feels very wrong.

I'm unclear as to the situation, the account the mortgage company wants to verify, is this a bank deposit account or an account on a credit report? Is the account in the name of the applicant or a co-borrower/signer? You state that "a person whose name was added to an account does in fact have an account and wants to verify his social security number", who is the person?

But in any case, commitment letters sometimes indicate that the lender will verify income and/or assets prior to loan closing, obviously to ensure that the income or funds are still available.

They may want it verbally, but surely they have a fax machine. They should send you the appropriate request with a release from the customer which you could answer and fax back.

It is a CD and an employee overhead the primary owner say at time of opening, something negative about not really being sure she wanted to add the name of the person in question....however, she did.

A real concern here is the mortgage company has called by phone only.....I don't feel comfortable about giving any kind of information out over the phone this way. Another real concern is the overheard conversation. Of course, we can't get in touch with the primary account owner.

As I said, just feels wrong.

As canderson indicated, they must have a fax machine, require that they fax over the request with written authorization from the customer to release. That is standard documentation that the mortgage company should have. But I would not verify the SS number, only the account information, they should be able to provide you with a standard Verification of Deposit form if not, they will have to go to the customer for a current statement.

Also, if its a joint account with rights of survivorship, the added person to the account has the ability to withdraw the funds, regardless of the overheard conversation. Not releasing the SS number also falls under your Privacy requirements.......