We have encountered a situation recently where a loan applicant has an extended credit alert on their credit report, has relocated since the alert was placed and is now in a different state(the phone number on the alert is no longer valid) and the customer is not able to physically come to our location prior to loan closing. Has anyone encountered this situation and how did you resolve your due diligence requirements? My lending folks tell me that although unusual this is not unique.

Thank you for your help.

What is the alert for? ID Theft??

Can the customer mail or fax documentation on this? Does the loan officer know the customer personally? What explanation can the loan officer provide? What does the bank's loan committee say?

The customer's inability to come in physically does not negate the loan officer's responsibility to do due dilligence. Can I stress the loan officer's responsibility? Make him/her step up and provide the documentation. If they can't or won't I would take the issue to the senior loan officer.