A walk in customer has the banker complete there loan application on the computer (rather than fill one out by hand) and when finished the banker prints a version and has the applicant sign. Under the section for "other income" where an application states that the applicant does not have to provide alimony, child support or separate maintenance income if they don't want it considered as a basis for repaying the loan, does the banker need to VERBALLY read this to the customer as they complete this section of the application?

My opinion would be yes. When we take a "pre-approval" over the phone, the phone banker reads that statement to the customer. Then the customer sees the statement again on their pre-printed application which they sign and return prior to final approval.

Think back to the intent of the Reg. If you don't disclose it, or disclose it after the income figure is stated, the disclosure has little or no effect.

Absolutely it should be provided PRIOR to getting the data effected by it.

Yes, the statement needs to be read "In Full", before the question of income is addressed.