All account keys and sensitive data collected by the Hive.Loans account key custodian are going to be hashed and salted with encryption to make it incredibly difficult for a hacker to do anything with data obtained in the event of a server security breech.
Once the Hive.Loans account is set as your accounts recovery key you'll be able to use it for free whenever to recover your account keys assuming you don't have an active lending contract outstanding.
Debating the idea of leaving "breadcrumbs" on the blockchain to serve as evidence of functions going on with the service which would also have the side effect of allowing future decentralized incarnations of the service to replay up to a reproducible block state for all future clients.