A mortgage applicant provides a valid Social Security card and driver's license, but the SSN was issued in a state different from where the applicant claims to have lived their entire life. Under CIP requirements, this situation:
Correct Answer
B) Requires additional verification but may be resolved with reasonable explanation
Under CIP requirements in 31 CFR 1020.220, discrepancies in documentation require additional verification, but there may be reasonable explanations (such as being born in a different state). The lender should seek clarification and additional documentation rather than automatically rejecting the application.
Why This Is the Correct Answer
Under CIP requirements in 31 CFR 1020.220, discrepancies in documentation require additional verification, but there may be reasonable explanations (such as being born in a different state). The lender should seek clarification and additional documentation rather than automatically rejecting the application.
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During the CIP process, a borrower provides a foreign passport as identification but refuses to provide any secondary form of identification. Under CIP requirements, the lender may:
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