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#2242351 - 09/11/20 08:12 PM Loan CIP
Craney Offline
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Joined: Jun 2020
Posts: 20
Do you need to CIP someone who is granting the collateral for a loan? The loan is for their daughter, and they don't have an ID at this time, but since he is signing paperwork, we are unsure if he needs to be CIP'd as well.

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#2242354 - 09/11/20 08:18 PM Re: Loan CIP Craney
BrianC Online
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BrianC
Joined: Nov 2004
Posts: 6,275
Illinois
First, welcome to the BankersOnline threads.

Second, one of the benefits to these groups is that we try to answer the questions asked and not asked when they are applicable to the scenario.

If the person granting collateral to secure a loan is not one of the loan applicants, then they are not a customer for CIP.

The safety and soundness question not asked that should be is, "How to we know that the person signing the collateral agreement is actually that person and has the legal authority to sign the collateral agreement?" I'd hate to find out that I have an unsecured loan because the collateral agreement was signed with a forged signature of someone committing ID Theft.
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#2242355 - 09/11/20 08:38 PM Re: Loan CIP Craney
Craney Offline
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Joined: Jun 2020
Posts: 20
Thank you so much!! I've definitely scouted out the threads before, and usually have found the answers I've been looking for, but couldn't quite find this one. Thank you again for your help!

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#2242433 - 09/15/20 03:20 AM Re: Loan CIP Craney
JacF Offline

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Joined: Nov 2001
Posts: 6,719
PA
I'm just here to re-emphasize Brian's closing paragraph above. Before proceeding, ID the owner of the collateral because sound lending practices warrant it.

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