A lender opening an account on a $312,000 loan collects 4 things: the applicant's name, address, date of birth and taxpayer identification number. For a bank subject to the cited customer identification program rule, does collecting these four identifying items complete the process or is verification also required?
Correct Answer
D) That is the 4-item minimum, and identity must still be verified after
A customer identification program collects name, date of birth, address and identification number, and then verifies identity through documents or non-documentary methods. Other choices: collection without verification is half the program; the employer name is not one of the four; and the identification number alone is not enough. See 31 CFR 1020.220. Source: 31 CFR 1020.220
Why This Is the Correct Answer
A customer identification program collects name, date of birth, address and identification number, and then verifies identity through documents or non-documentary methods. Other choices: collection without verification is half the program; the employer name is not one of the four; and the identification number alone is not enough. See 31 CFR 1020.220. Source: 31 CFR 1020.220
More Federal Laws Questions
Before the team acts on a production meeting, a training manager must address SCRA Interest Rate Cap. Which response is most defensible?
A team member asks about RESPA Kickbacks and Referrals in an investor-delivery review while trying to confirm the rule-based response. Which response should the loan team use?
During a disclosure desk review, the loan team encounters an RESPA Servicing Transfer issue. Which response should avoid a shortcut that would misapply the rule?
A disciplinary-risk review raises a question about TILA APR and finance-charge rules. Which action should the renewal specialist recommend?
An MLO is reviewing procedures for a case where a compliance analyst asks why covered mortgage application data is collected. What is the proper handling?
A consumer complaint response raises a question about GLBA privacy requirements. Which action should the state compliance officer recommend?
Before the team acts on a branch training session, a policy analyst must address RESPA Servicing Transfer Notice. Which response is most defensible?
A training manager is resolving RESPA Referral Fees during an internal audit sample. Which action best fits the rule?
An operations lead is resolving ECOA Prohibited Discrimination Bases during a loan-team coaching session. Which action best fits the rule?
In a file escalation meeting, a disclosure specialist sees facts tied to TILA Closing Disclosure. What should the file reflect?
People Also Study
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A reviewer excludes a $14,000 second-lien home improvement loan on the basis that small loans fall outside HMDA. She has in mind a dollar threshold but cannot say what it is. What is the right step?
Next Question
A compliance exception review raises an ECOA Prohibited Basis question for a policy analyst. What answer should guide the file?