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#1069094 - 10/23/08 01:14 PM Driver's license in loan files
J2C Offline
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We have always taken the stance that we will not keep copies of driver's licenses in loan files for any purpose, but specifically from a fair lending point of view.

I am wondering what other opinions are regarding this as we have recently found out that a lot of banks do keep copies of IDs in loan files. We always were under the impression that it shouldn't be done.

Any input is greatly appreciated.
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#1069121 - 10/23/08 01:27 PM Re: Driver's license in loan files J2C
Many Hats Offline
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Orlando, FL
We have taken the same stance and never include a copy of the borrower's driver license in the loan file. The loan officer is required, of course, to collect, record and verify the information for CIP purposes. This information is collected on the actual loan application and verified using the states driver license verification web site.

Outside of that, until we get the green light from regulators to keep a copy in the loan file, we aren't planning on doing it any time soon.

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#1069155 - 10/23/08 01:52 PM Re: Driver's license in loan files Many Hats
tcredle Offline
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We attach a copy of the drivers license with our CIP form and have a separate file cabinet for this. We do this with every loan we close.

We do not put in our loan files.

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#1069175 - 10/23/08 02:03 PM Re: Driver's license in loan files tcredle
J2C Offline
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Big Brother knows and that's a...
Originally Posted By: tcredle
We attach a copy of the drivers license with our CIP form and have a separate file cabinet for this. We do this with every loan we close.

We do not put in our loan files.


Ok, you are retaining them for CIP purposes then. What size bank are you? We keep all of our CIP documents in the loan file, that is part of our issue.
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#1069202 - 10/23/08 02:15 PM Re: Driver's license in loan files J2C
Bagweaver Offline
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Posts: 2,409
SW GA
All of our CIP files are separate from our loan files and retained by our BSA Officer. One day we hope to begin imaging them.
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#1069246 - 10/23/08 02:47 PM Re: Driver's license in loan files Bagweaver
RR Joker Offline
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The Swamp
Ours are imaged and it wouldn't be unheard of to have a copy in the loan file. the FRB has had no issues with this. My theory is and has ALWAYS been (from a Fair Lending Stance)

"You want me to review for FL and I have NO IDEA of race, etc, so I have to gather my "evidence" based on sex instead...Now just who DOES have knowledge of race?...the LO, of course...they did the dang interview...Who needs a picture? and who is left "in the dark" so-to-speak....the reviewer, of course!" It's about the most ridiculous "requirement" I know of.
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#1069262 - 10/23/08 03:05 PM Re: Driver's license in loan files RR Joker
ktac MITCH Offline
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Giant side of TX
See the BSA Exam manual - page 49 footnote 49.
Essentially, having a copy in the loan file is not in and of itself a violation but you should be able to demonstrate to examiners that you have policy / procedures / controls in place to prevent someone from using it for discriminatory purposes.
IE to prevent collections from pursuing repo sooner on protected class of people verses non-protected class.
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#1069281 - 10/23/08 03:20 PM Re: Driver's license in loan files J2C
A_G Offline
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Our Bank does not keep copies of DLs in the loan file. However, the information is documented on the application and system for CIP purposes.
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#1069284 - 10/23/08 03:25 PM Re: Driver's license in loan files J2C
Compli123 Offline
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Joined: Mar 2008
Posts: 90
We do not keep a copy of the DL in the loan file, rather we keep a copy with their CIP, if it is a new customer.

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#1069322 - 10/23/08 03:49 PM Re: Driver's license in loan files Compli123
Jon D Offline
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Jon D
Joined: Jun 2001
Posts: 53
The Midwest
Countering the trend, we do maintain copies of the drivers license in our credit files and our federal regulator up to this point of time has expressed no concerns with what we are doing. In lock step with what ktac posted earlier, we do have procedures and controls in place to prevent someone from using it for discriminatory purposes. Namely we do not obtain a copy of the drivers license until at the of loan closing.

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