Obtaining Monitoring Data By Phone

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Question:

Beginning January 1, 2003, lenders must ask for the government monitoring information over the telephone when someone applies for a loan that is reportable for HMDA purposes. If the applicant refuses to provide the information when given the option, is the lender required to obtain this information by visual observation or surname if the applicant is approved? Or does the lender report it as "Not provided?"

Answer:

This thread has a lot of good information on this topic and the change in the rule coming with the new year. Jim Bedsole pointed out that the Getting it Right booklet may be outdated with the new rules. He noted that "Appendix B was modified to read as follows in Section I.B.4.:

You must ask the applicant for this information (but you cannot require the applicant to provide it) whether the application is taken in person, by mail or telephone, or on the Internet. For applications taken by telephone, the information in the collection form must be stated orally by the lender, except for that information which pertains uniquely to applications taken in writing. You need not provide the data when you take an application by mail or telephone or on the Internet, if the applicant fails to answer. You should indicate whether an application was received by mail, telephone, or the Internet, if it is not otherwise evident on the face of the application. (emphasis added)."

First published on BankersOnline.com 2/3/03