Skip to content
BOL Conferences
Forums · Active Threads · Forum Rules · Mark All Read · Log In
BankersOnline.com Forums Banker Forums Lending Compliance Drivers license question once again
Thread Options
#278631 - 11/22/04 10:29 PM Drivers license question once again
Auditjg Offline
Member
Auditjg
Joined: Sep 2004
Posts: 67
I have read the numerous posts regarding keeping copies of drivers licenses in the loan files. I have talked with our loan department (I'm the auditor) and they state that for the secondary market, we are required to be able to prove the identity of individuals if ever asked. I'm thinking of recommending they keep the copies in another location. Any thoughts or practices? Any new conclusions on whether or not these are potential risks for us in the event we get hit for appearing to discriminate on loan customers? I just want to make sure we are covered. We sell about 95% of our loans to the secondary market, FNMA, etc.

Return to Top
Lending Compliance
#278632 - 11/22/04 10:47 PM Re: Drivers license question once again
someone else Offline
Power Poster
someone else
Joined: Aug 2004
Posts: 3,300
back to my roots
How strange...we also sell to FNMA and are not required to keep a copy of the DL in the copy.
_________________________
Somewhere, something incredible is waiting to be known. - Carl Sagan

Return to Top
#278633 - 11/22/04 10:51 PM Re: Drivers license question once again
Auditjg Offline
Member
Auditjg
Joined: Sep 2004
Posts: 67
Do you sell to PHH or Freddie Mac? I meant to say FHLMC, not FNMA...They told me for PHH loans they actually have to send a copy of the drivers license to PHH...does that ring a bell?

Return to Top
#278634 - 11/22/04 10:56 PM Re: Drivers license question once again
someone else Offline
Power Poster
someone else
Joined: Aug 2004
Posts: 3,300
back to my roots
No, that doesn't ring a bell at all. But, then again, we only sell to FNMA.
_________________________
Somewhere, something incredible is waiting to be known. - Carl Sagan

Return to Top
#278635 - 11/22/04 11:30 PM Re: Drivers license question once again
wavewatcher Offline
Diamond Poster
wavewatcher
Joined: May 2003
Posts: 2,053
Hawaii
you could keep it in a sealed envelope with the file and if anyone opened it, they would have to initial, date, and state a reason they opened the sealed envelope and then reseal it.

Return to Top
#278636 - 11/23/04 03:09 PM Re: Drivers license question once again
Anonymous
Unregistered

I guess I'm wondering if there are risks, regulations that are pertinent to them keeping the copies in the loan file. If they can keep them in there with no regulator coming in and telling them otherwise, then I hate to suggest something for them to do in addition without anything to back that up.

Return to Top
#278637 - 11/23/04 03:23 PM Re: Drivers license question once again
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,529
Bloomington, IN
Quote:

Do you sell to PHH or Freddie Mac? I meant to say FHLMC, not FNMA...They told me for PHH loans they actually have to send a copy of the drivers license to PHH...does that ring a bell?



It's not a Freddie requirement. I'm not familiar with PHH.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#278638 - 11/23/04 03:55 PM Re: Drivers license question once again
Auditjg Offline
Member
Auditjg
Joined: Sep 2004
Posts: 67
So what does your bank do? Do you keep copies of the dl anywhere?

Return to Top
#278639 - 11/23/04 04:00 PM Re: Drivers license question once again
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,529
Bloomington, IN
No. We document (using the CIP form now) the identification was establihsed by a valid (current) DL and/or other appropriate documents.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#278640 - 11/23/04 04:10 PM Re: Drivers license question once again
Auditjg Offline
Member
Auditjg
Joined: Sep 2004
Posts: 67
See, we do that too. We keep the CIP form with the noted DL # and other pertinent information. I think this could be a potential risk if we were to ever get hit for discrimination, by keeping the DL copies in addition. It hasn't ever happened, but we are approaching 500 mil. Are there any additional requirements, or things I should be looking for in this case in regards to this question on the copies of DL?

Return to Top
#278641 - 11/23/04 04:14 PM Re: Drivers license question once again
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Quote:

you could keep it in a sealed envelope with the file and if anyone opened it, they would have to initial, date, and state a reason they opened the sealed envelope and then reseal it.


What! Why?!?


Quote:

I think this could be a potential risk if we were to ever get hit for discrimination, by keeping the DL copies in addition. It hasn't ever happened, but we are approaching 500 mil. Are there any additional requirements, or things I should be looking for in this case in regards to this question on the copies of DL?


This is NOT a Reg B violation. You are collecting the info as part of the requirements of the secondary market. I'm not aware of this requirement, but if they want it, you'll need to provide it per their request.
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#278642 - 11/23/04 04:18 PM Re: Drivers license question once again
Auditjg Offline
Member
Auditjg
Joined: Sep 2004
Posts: 67
Thank you! That's exactly what I wanted to hear!

Return to Top

Moderator:  Andy_Z