Derrick wrote: >>> What is the real reason why they need to have a copy of the ID. Is it because they do not trust us in doing one of the jobs we where hired for, or is there a legal reason that they need the copy. If it is a legal reason then how come not everyone requires it. <<<
Consumer identification is required by many statutes, policies and procedures. Each financial institution is required to specify the means they use to identify consumers opening new accounts, which includes loans and mortgages. The policy is commonly referred to as a CIP, or Consumer Identification Policy or Procedure. A company's CIP will specify what identifying method is to be used, including what information will be kept on file and how that information is to be obtained. Some companies will require a copy of the ID used to be included in the consumer's file, while others simply need to collect and validate the information on the ID. Again, depends on how the CIP is worded.
More and more companies are getting away from using a copy of an ID and relying more on data gathering. Thus the infamous identify affidavits and various forms currently in use. For example, the "Patriots Act Disclosure/Borrower Identification" (http://www.pawnotary.com/forms/Patriots%20Act%20Disclosure.pdf) form that many companies use. |
