Loan CIP

Do you need to CIP someone who is granting the collateral for a loan? The loan is for their daughter, and they don't have an ID at this time, but since he is signing paperwork, we are unsure if he needs to be CIP'd as well.

First, welcome to the BankersOnline threads.

Second, one of the benefits to these groups is that we try to answer the questions asked and not asked when they are applicable to the scenario.

If the person granting collateral to secure a loan is not one of the loan applicants, then they are not a customer for CIP.

The safety and soundness question not asked that should be is, "How to we know that the person signing the collateral agreement is actually that person and has the legal authority to sign the collateral agreement?" I'd hate to find out that I have an unsecured loan because the collateral agreement was signed with a forged signature of someone committing ID Theft.

Thank you so much!! I've definitely scouted out the threads before, and usually have found the answers I've been looking for, but couldn't quite find this one. Thank you again for your help!

I'm just here to re-emphasize Brian's closing paragraph above. Before proceeding, ID the owner of the collateral because sound lending practices warrant it.