A couple applied for a home loan, of which the application was brought in by one of the two applicants. Neither applicant marked the box for ethnicity, but both marked the boxes for race and sex. The application was then denied. The Loan Officer met one of the applcants, but not the other.

On the LAR, should the eithnicity be marked "information not provided", or should the ethnicity be based on the loan officer's observation of visual/surname, or should the ethnicity be the observation of the applicant the Loan Officer met and "information not provided" for the other applicant?

In this case, I'd probably go with visual observation or surname, as the application was physically handed to the LO.

That was my thought - and to document the file as to circumstances. Thanks.

or should the ethnicity be the observation of the applicant the Loan Officer met and "information not provided" for the other applicant?

This is the correct option. However, you would report the information that was marked on the application by the other applicant, such as their race and sex.