Academic journal article ABA Banking Journal

Can a Referring Advisor Gather Monitoring Data?

Academic journal article ABA Banking Journal

Can a Referring Advisor Gather Monitoring Data?

Article excerpt

Q. If a bank works with financial advisors who refer mortgage customers to the bank, is it acceptable for the financial advisors to ask the government monitoring questions and then relay that information to the bank? Or this is something that bank must ask the customer directly?

A. It depends. Generally the entity taking the application must request the information, be it on a printed application/separate form or verbally, if taken over the phone. If the financial advisor is not taking the application, then it may not be prudent to have the advisor request this information from the client. (This is especially so if they have not been trained.). However, if your question is really related to asking the financial advisor for the information (i.e., to note the applicant's information) then this would generally not be permitted except perhaps if to help complete the information based on visual observation or surname.

Two regulations address your questions. First, Regulation B, Section. 13, requires the collection of monitoring information on applications for credit primarily for the purchase or refinancing of a dwelling occupied or to be occupied by the applicant as a principal residence and secured by the dwelling. Section . …

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