not face to face but known

Not sure if anyone else has run into this last year or not.

We have a loan that I believe was an oral request, either through email or over the telephone. Due to the pandemic, the loan documents were sent either email or snail mail (probably email). When we got the DI form back, there was one checked off that they did not wish to provide. I don't believe the applicants actually came in until closing, but here is the question - the applicant was personally known to the lender. So can the lender fill out the missing information based on personal knowledge?

I am a little torn because the regulation talks about application time and closing. It does not refer to prior knowledge anywhere. So based on a strict reading, I would say we would have to stick with the did not wish to provide since the applicant was not in person until closing and the lender cannot fill in the missing information based on personal knowledge, even though the information might be valuable.

Thoughts?

Appendix B 11. If the applicant declines to answer these questions by checking the “I do not wish to provide this information” box on an application that is taken by mail or on the internet, or declines to provide this information by stating orally that he or she does not wish to provide this information on an application that is taken by telephone, you must report “information not provided by applicant in mail, internet, or telephone application.”

Thank you. That is what I was getting from reading the regulation but just wondering if anyone else had different thoughts.

The applicant says they don't want to provide the information, and it could be for any reason (or just to be ornery). Perhaps they are concerned that government will get their personal information. It's not for the bank to decide to provide what it knows of the applicant's demographics when the applicant has said "No."