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#2114364 - 01/17/17 04:53 PM Photocopies of photo ID
AZloan Offline
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Joined: Apr 2016
Posts: 266
Can we keep photocopies of borrowers' ID in loan file? We have a part note that we don't know the borrowers at all and would like to keep their IDs. Somewhere, I heard that we are not suppose to photocopy photo IDs. I have their passports and driver licenses copies.

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Lending Compliance
#2114369 - 01/17/17 05:10 PM Re: Photocopies of photo ID AZloan
M Cockrell Offline
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M Cockrell
Joined: Jan 2003
Posts: 1,046
Dallas, TX
To my knowledge, unless state statutes prohibit it, there isn't a law which would preclude you from keeping in the loan file.

That having been said, it may not be the most prudent place to maintain the ID(s). Could I suggest CIF level?
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#2114393 - 01/17/17 06:29 PM Re: Photocopies of photo ID AZloan
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Check your state law for photocopying IDs. The state of IN has a prohibition from "duplicating" driver licensees. If you image or copy the DL in color then you must have a watermark across it stating that it is a copy.
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#2114398 - 01/17/17 06:38 PM Re: Photocopies of photo ID AZloan
Rocky P Offline
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Joined: Jun 2003
Posts: 7,650
Florida
There is no federal prohibition. Some examiners however say that if there is a license in file, they will ensure that it was not used on a prohibited basis.

At banks I have been at the information used to identify a person was kept in a CIP file rather than in a loan file. It is the easiest way.
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#2114405 - 01/17/17 06:50 PM Re: Photocopies of photo ID AZloan
HRH Okie Banker Offline
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Joined: Jan 2003
Posts: 3,070
Oklahoma
We have ours imaged to the CIF level but available to the loan side. Oklahoma adopted Alternative A of Article 9, which requires recordation of UCC to be under the exact name on an unexpired drivers license.
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#2114425 - 01/17/17 07:25 PM Re: Photocopies of photo ID AZloan
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I'm not going to address the legality of photocopying ID's. We've beat this drum before (you can search for previous discussions), but let me add:

The idea that copies of DL's is a fair lending issue is so crazy to me. If that is even remotely true, then banks should require all applicants to wear paper sacks over their heads when they apply for a loan. They should also disguise their voice and let no exposed skin be seen - or else I might know their ethnicity, race and sex.

The FFIEC states in the BSA Exam Manual that it's okay to have copies of DL's. It's in a footnote around #49 or so. I don't have it in front of me. If an examiner doesn't like you keeping photo's of DL's (and it's permissible by your state law), ask the examiner why the FFIEC would state this?
(stepping off my soapbox now)
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#2114521 - 01/18/17 02:35 PM Re: Photocopies of photo ID David Dickinson
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,351
Quote:
The idea that copies of DL's is a fair lending issue is so crazy to me. If that is even remotely true, then banks should require all applicants to wear paper sacks over their heads when they apply for a loan. They should also disguise their voice and let no exposed skin be seen - or else I might know their ethnicity, race and sex.


My mind's eye visual of this is killing me......thanks for the laugh.
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#2114547 - 01/18/17 03:34 PM Re: Photocopies of photo ID AZloan
AZloan Offline
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Joined: Apr 2016
Posts: 266
Thank you all very much!

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#2117167 - 02/06/17 08:03 PM Re: Photocopies of photo ID AZloan
Noah Wiseman Offline
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Joined: Dec 2015
Posts: 6
Dan - Would you happen to have the state code reference for Indiana that prohibits the duplicating of their drivers licenses?

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