Question: If an application is filled out via internet, telephone, or mail, and the applicant does not provide information regarding ethnicity, race, or sex, what is the Bank’s responsibility (if any) in trying to gather this information?
Answer: For internet, mail, and phone applications, if the applicant marks the “I do not wish to provide” box (or indicates this verbally on a phone application) and leaves the ethnicity, race, and sex blank, then you do not have any further responsibility to collect that information even if you see them later on. You would report this as “information not provided by applicant in mail, internet or telephone application” on your LAR.
If the applicant does NOT mark the “I do not wish to provide” box and leaves the ethnicity, race, and sex blank, then you must attempt to collect the information if you see them face-to-face during the application process. So, if they come in prior to closing, you need to request the information again. This could be done on a separate collection form or on the application itself. If the applicant marks the “I do not wish to provide” box at that time, you would collect on the basis of visual observation. If the only time you see them in person is at closing, you are not required to request/obtain the information at that time. You could do so but we recommend you don’t. While “application process” isn’t further defined, our opinion is it continues until you issue a Closing Disclosure, as applicable.
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David’s banking career began as a field examiner for the FDIC in 1990. He later became a Compliance Officer and Loan Officer for a small bank. In 1993, he established Banker’s Compliance Consulting. Along with his amazingly talented Team, he has written numerous compliance articles for prestigious banking publications and has developed compliance seminars that Banker’s Compliance Consulting produces.
He is an expert in compliance regulations. He is also a motivational speaker and innovative educator. His quick wit and sense of humor transform the usually tiring topic of compliance into an enjoyable educational experience. David is on the faculty of the American Bankers Association National Compliance Schools and has served on the faculty of the Center for Financial Training for many years. He also is a frequent speaker at the ABA’s Regulatory Compliance Conference. He is also a trainer for hundreds of webinars, is a Certified Regulatory Compliance Manager (CRCM), and has been a BankersOnline Guru for many years. The American Bankers Association honored David with their Distinguished Service Award in 2016.
David and his wife Karen have 3 adult children and 2 grandsons (none of whom live at home!) and 3 cats (of which Dave is allergic … the cats, not the children!). They live on a lake in Nebraska and when possible he can be found fishing or making sawdust in his shop. David plays the guitar & piano and enjoys singing with Karen. They occasionally lead worship at their church.