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#1688008 - 04/11/12 07:23 PM
Is It Now an "In Person" Application ??
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100 Club
Joined: Jan 2006
Posts: 222
Virginia
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Based on the below quote:
Official Staff Commentary on Regulation C Effective January 1, 2004 Paragraph 4(a)(10) Applicant and income data.
1. Applicant data—completion by applicant. An institution reports the monitoring information as provided by the applicant. For example, if an applicant checks the “Asian” box the institution reports using the “Asian” code.
2. Applicant data—completion by lender. If an applicant fails to provide the requested information for an application taken in person, the institution reports the data on the basis of visual observation or surname.
3. Applicant data—application completed in person. When an applicant meets in person with a lender to complete an application that was begun by mail, Internet, or telephone, the institution must request the monitoring information. If the meeting occurs after the application process is complete, for example, at closing, the institution is not required to obtain monitoring information.
I believe that #3 turns an application into an in-person app and the loan officer is 'required' to collect ethnicity, race and gender....not just 'request' it....per Para #2. I've been told that I am 'forcing compliance by misinterpreting the regulation. Is it or is it not now an in person application ?
Your thoughts and advice are appreciated.
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#1688012 - 04/11/12 07:34 PM
Re: Is It Now an "In Person" Application ??
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Diamond Poster
Joined: Sep 2011
Posts: 1,648
A CU, Where Regs Don't Apply
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If they are actually completing the application during the in-person meeting, then I would agree, you then have an in-person application. If the application is fully completed prior to this meeting and the applicant is simply dropping off income documentation or something of that nature, then it wouldn't be.
I'd venture a guess your LO's just don't want to mess with it. But, they aren't the ones that have to answer when you get questioned about your HMDA data either! We never have an application fully completed without the applicants being physically present at some point, so I accept no excuses for unknown applicant data fields.
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#1688171 - 04/12/12 01:09 PM
Re: Is It Now an "In Person" Application ??
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Power Poster
Joined: Apr 2001
Posts: 4,828
Between the lines
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We are also in the camp of not completing the information at closing or after the app process is complete.
We take apps by phone and via internet. If they come in to finish the process, then we collect it. If we are deep in the loan process, and they just come in to pick up a copy of the appraisal, drop off additional papers, etc. we leave the codes as not furnished by mail, etc.
Truffle makes a good point about having info on all closed loans and not on all denials. Don't give the fair lending examiners something else to ponder.
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#1688785 - 04/13/12 07:13 PM
Re: Is It Now an "In Person" Application ??
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Power Poster
Joined: Jun 2003
Posts: 7,659
Florida
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We interpret it as with the appendix B - once the application is taken, that stops the bank's liability to get information.:
E. If the applicant declines to answer these questions or fails to provide the information on an application taken by mail or telephone or on the Internet, the data need not be provided. In such a case, indicate that the application was received by mail, telephone, or Internet, if it is not otherwise evident on the face of the application.
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#1688972 - 04/16/12 02:08 PM
Re: Is It Now an "In Person" Application ??
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Joined: Aug 2002
Posts: 47,532
Bloomington, IN
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If you receive an application by fax, mail or Internet and then during the course of processing the application [I'm not talking about at closing. Once you get to closing the application process has been completed] you (the LO) meet with the applicant face to face then how can you claim you (the LO) did not have a face to face meeting with the applicant to complete the application whether it's to review income, debts, etc?
In that meeting you must ask for the GMI, and you must inform them why you are requesting the information (re-give the disclosure) and if the GMI not provided the LO must make the determination based on their visual observation and/or surname.
Simply because an application began as a non face to face application does not mean it will end up as a non face to face application.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#1690266 - 04/19/12 01:15 PM
Re: Is It Now an "In Person" Application ??
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100 Club
Joined: Jan 2006
Posts: 222
Virginia
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Many thanks to all of you for your thoughts and advice. My interpretation of #3 above agrees with Dan's so I feel much more confident about offering it up as a partial solution.
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#1690473 - 04/19/12 04:41 PM
Re: Is It Now an "In Person" Application ??
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Member
Joined: Jun 2011
Posts: 82
Oregon
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So... Business individual purchases dwellings usually at auction at a good price, fixes them up and adds them to his rental supply. He has purchased 3 this year. He makes the request by phone, we prepare the documents and he usually signs documents in escrow but we do know this individual well as he is in frequently. When given the option he states he does not care to supply the Government monitoring information. Since we know this individual should we provide the sex, ethnicity, race from current transactions? Currently we have it marked as information not provided by applicant in phone application.
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#1690475 - 04/19/12 04:47 PM
Re: Is It Now an "In Person" Application ??
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Joined: Aug 2002
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Bloomington, IN
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You would not report the informaion unless you met with him during the application process for the specific request to complete the process.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#1690486 - 04/19/12 05:05 PM
Re: Is It Now an "In Person" Application ??
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Power Poster
Joined: Apr 2001
Posts: 4,828
Between the lines
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kake, you should ask for it everytime and give him the opportunity to supply the information or decline.
When training my employees, I remind them that the attitudes and ideas of customers are constantly changing. We bankers have no way of knowing whether they have been researching ancestry and decided to acknowledge something new or nothing at all. Even on the sex issue, just because you have known them for 20 years, you do not REALLY KNOW unless, well, you get the idea.
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