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.
My opinion only. Not legal advice.
Say you'll haunt me - Stone Sour