Under the Customer Identification Program (CIP), which of the following is NOT a required piece of information that must be collected for individual customers?
Correct Answer
C) Annual income
The CIP under the USA PATRIOT Act requires collecting name, date of birth, address, and identification number (SSN for U.S. persons). Annual income is not a required element of the CIP, though it may be collected for other purposes such as ability-to-repay determinations.
Why This Is the Correct Answer
The CIP under the USA PATRIOT Act requires collecting name, date of birth, address, and identification number (SSN for U.S. persons). Annual income is not a required element of the CIP, though it may be collected for other purposes such as ability-to-repay determinations.
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A lender receives a pre-application inquiry from a borrower who provides their name, income, and property address but does not submit a formal application. Six months later, the same borrower submits a complete application. How should this be reported under HMDA?
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A borrower submits a mortgage application on Monday and receives an adverse action notice on Friday of the same week. The notice states the decision was based on 'insufficient credit history' but doesn't mention that a credit report was obtained. This notice violates FCRA because: