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#278631 - 11/22/04 10:29 PM Drivers license question once again
Auditjg Offline
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Auditjg
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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.

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#278632 - 11/22/04 10:47 PM Re: Drivers license question once again
someone else Offline
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someone else
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How strange...we also sell to FNMA and are not required to keep a copy of the DL in the copy.
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#278633 - 11/22/04 10:51 PM Re: Drivers license question once again
Auditjg Offline
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Auditjg
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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?

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#278634 - 11/22/04 10:56 PM Re: Drivers license question once again
someone else Offline
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someone else
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back to my roots
No, that doesn't ring a bell at all. But, then again, we only sell to FNMA.
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#278635 - 11/22/04 11:30 PM Re: Drivers license question once again
wavewatcher Offline
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wavewatcher
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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.

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#278636 - 11/23/04 03:09 PM Re: Drivers license question once again
Anonymous
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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.

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#278637 - 11/23/04 03:23 PM Re: Drivers license question once again
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
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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.
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#278638 - 11/23/04 03:55 PM Re: Drivers license question once again
Auditjg Offline
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Auditjg
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Posts: 67
So what does your bank do? Do you keep copies of the dl anywhere?

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

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#278640 - 11/23/04 04:10 PM Re: Drivers license question once again
Auditjg Offline
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Auditjg
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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?

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#278641 - 11/23/04 04:14 PM Re: Drivers license question once again
David Dickinson Offline
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David Dickinson
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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.
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#278642 - 11/23/04 04:18 PM Re: Drivers license question once again
Auditjg Offline
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Auditjg
Joined: Sep 2004
Posts: 67
Thank you! That's exactly what I wanted to hear!

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