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#2222568 - 09/28/19 01:38 AM Visual obervation or surname
jlroberts Offline
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jlroberts
Joined: Sep 2009
Posts: 1,601
Ohio
Is the - Was the XXX of the borrower collected on the basis of visual observation or surname? - required to be answered for all application methods or only if it is a face-to-face?

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#2222571 - 09/28/19 11:28 AM Re: Visual obervation or surname jlroberts
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Appendix B to Part 1003--Form and Instructions for Data Collection on Ethnicity, Race, and Sex

See 10,11, and 12

https://www.bankersonline.com/regulations/12-1003-appb
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#2222589 - 09/30/19 01:04 PM Re: Visual obervation or surname jlroberts
Inherent_Risk Offline
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Joined: Jan 2017
Posts: 570
Randy's link will give you when you can actually collect DI based on visual obervation or surname, but if you're asking whether to leave it blank or mark No when the information isn't taken face-to-face, that is not yet clear.

For HMDA, where the information is not collected face to face, the visual observation questions should always be N/A OR always be Not Collected based on visual observation (or surname). I spoke with the CFPB in January, and they said it would be clarified in the next rule that was written. I'm in the Not Collected camp because it doesn't say anywhere that it can be N/A.

Just be consistent and ask for a citation if anyone says your wrong.

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#2222598 - 09/30/19 02:13 PM Re: Visual obervation or surname jlroberts
Truffle Royale Offline

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The form says answer the question IF the application was taken face to face. The logical conclusion is that if it's not taken face to face you don't answer the question. I've yet to see a borrower complete that section when they're filling out the form and mailing it in. Reg C is based on the information obtained from the borrower so no LO is suppossed to go back and complete the form for the borrower if not taken face to face. And I'm not reporting it either.

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#2222610 - 09/30/19 04:13 PM Re: Visual obervation or surname jlroberts
Inherent_Risk Offline
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Joined: Jan 2017
Posts: 570
You have to report it. You're just reporting it as NA, which is probably logical, but you won't find anything saying that you are allowed to report NA in these situations.

The form says you have to fill out the questions if it's taken in person. It doesn't say anything about what to do for not in person.

You can rely on logic. I'll stick with a technical reading of the "Reporting Not Applicable" HMDA guide. Hopefully, they'll make the 2 match up soon. In the end, I don't think anyone is actually going to care.

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#2222612 - 09/30/19 04:29 PM Re: Visual obervation or surname jlroberts
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
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