Can a title or escrow company license its business records to AI companies?

Updated October 25, 2026 · How we research

Why are title and escrow records so restricted?

The Gramm-Leach-Bliley Act (GLBA) privacy rule applies to businesses significantly engaged in financial activities. The FTC (Federal Trade Commission) lists providing real estate settlement services among those activities. Title and escrow companies are not named as such, so confirm with your lawyer how the rule applies to you.

Under the rule, nonpublic personal information (NPI) means personally identifiable financial information collected in connection with a financial product or service, unless it is lawfully public. The FTC gives examples such as information a person provides to get a service, account numbers, balances and payment history. A list derived even partly from NPI, such as a list of your customers, is itself NPI.

Sharing NPI with an unaffiliated company generally requires a privacy notice and, outside listed exceptions, a chance for the consumer to opt out. Information you received from a lender or another institution under an exception can only be used for the purpose it was given. Licensing closing files to an AI company does not fit neatly into any exception.

What systems does a title or escrow company usually run on?

Most companies run a title and closing production system. SoftPro, for example, describes integrated closing, title and escrow production with one-time data entry, automated tasks, ordering from underwriters and vendors, a customer portal for orders, status and document exchange, reporting on revenue and underwriter remittances, and reconciliation tools.

Alongside it sit email, which carries much of the coordination with agents, lenders, buyers and sellers; e-signature and secure messaging tools; escrow trust accounting; and document storage holding deeds, payoff letters, settlement statements and identity documents.

Which records might be considered?

The realistic material shows how a file moves from order to closing and how problems are resolved. Candidates that contain no consumer information include the following.

• Internal procedures for order opening, title review, curative work and closing, written without real files.
• Training material for escrow officers and examiners.
• Policy and compliance documents, including written information security programs, with security-sensitive details removed.
• Vendor management records and underwriter procedure manuals you are permitted to share.
• Internal discussions about staffing, workflow and technology that do not reference consumers.

What has to stay out of a title or escrow license?

A title plant is a company's indexed copy of public land records. Some are shared or licensed from others, so check who owns yours.

• Closing files, settlement statements and closing disclosures.
• Social Security numbers, identity documents, loan numbers and payoff statements.
• Wiring instructions, bank account details and escrow trust account records.
• Customer lists and any list of buyers, sellers or borrowers.
• Emails and messages with consumers, agents and lenders about specific transactions.
• Information received from lenders, which carries reuse limits under the GLBA rule.
• Underwriter agreements and title plant data, unless your contracts clearly allow it.
• Employee personal and HR data.

Aren't property records public?

Recorded deeds and mortgages are public, and the FTC says lawfully public information can fall outside NPI. But a closing file combines public records with private financial details, and the GLBA rule treats information as public only when you have a reasonable basis to believe it is lawfully available and the person cannot direct that it be kept private. Do not assume a file becomes licensable because some of it is recorded.

How should a title or escrow company get started?

Ask your lawyer or compliance officer to confirm how the GLBA privacy rule and any state escrow or insurance regulations apply to you, and check your underwriter and lender agreements for confidentiality and data-use terms. Then set aside every system that holds consumer or transaction data. What remains, mostly procedures and training material, is the realistic pool.

Wire fraud is a serious risk in this industry, so remove anything that describes how your company verifies or sends funds. The guide on what can be excluded covers how to set those details aside.

General information, not legal, tax or financial advice.