The costs associated with data breach are closer to the front of your mind now than they were three years ago. What do you do about contracts you entered into three years ago? Five years ago?
It’s crucial to perform some level of diligence on existing vendor relationships. Vendors who do business in mortgage or settlement services fields are likely to be ready with any documentation you might have requested if you were contracting with them now. Regardless of what the contract says, simply asking for documentation is likely to yield positive results.
If you encounter delay or resistance, you might find a hook in the legacy contract that provides for audits of financials: you might be able to obtain security and other information under that clause as well. There may be a general promise that the vendor will “cooperate,” and that might give you a leg to stand on. When all else fails, know the contract’s term and termination rights. Often a contract term will automatically renew unless one party notifies the other of its intent not to renew. There may be a separate right of termination for convenience. These give you leverage to obtain any diligence documentation you need, and they also represent opportunities to amend the contract to better protect you and your data.