If a loan customer that we CIP'd dies, leaving the spouse now holding the mortgage, are we required to CIP the spouse? The spouse was not on the original mortgage and, therefore, was not CIP'd. Also, what recourse do we have if the spouse does not want to provide the information? Unlike a deposit customer, we can't merely just close the loan account. Any assistance would be greatly appreciated.

Document.

I'm not trying to be a smart a$$ here; I just don't see any other way out; so be ready to explain it to the examiners. I at least wanted to answer because I know how discouraging it is when no one answers.

Have a great day.

How is the spouse holding the mortgage? If the loan was made to deceased spouse only, you have a mortgage to deceased spouse and property owned by surviving spouse.

Are you going to redo loan to surviving spouse or call loan due to borrower's death?

If redoing loan, you can CIP then. If surviving spouse does not want loan, they must take you out with alternate financing or you could foreclose.

I just have to interject a small piece of humanity here....

Is this what the CIP has reduced us to? If the loss of a spouse is not traumatic enough, we now have to ask the grieving widow(er) to prove to us who s/he is.

Sorry - but if an examiner is going to give you a hard time over this, then I just don't know what to say.

Unfortunately - death is generally a default on a loan. I've never heard of anyone allowing someone not on the note to continue on with the payments.

CIP hasn't changed this; deceased borrower is serious; what if surviving spouse has poor credit and insufficient income to repay; if you continue to accept payments, you may waive rights if default later.

The death of a spouse requires that the surviving spouse complete and sign lots of paperwork. With all due respect, providing the four required pieces of information for CIP is hardly a traumatic event. And why would he/she not want to provide such basic information?