Federal Mortgage Law · 24% of the SAFE exammedium
Correct answer: Note the refusal and complete the demographic fields based on visual observation and the borrower's surname
Regulation B requires lenders to collect demographic information when a primary residence is used as collateral. Applicants provide this information voluntarily, and if they decline, the lender must note that fact on the application. However, in a face-to-face transaction, the lender is also required to complete the demographic fields based on visual observation and the applicant's surname. The lender cannot refuse to process the application because of the borrower's refusal, cannot leave the fields entirely blank without notation, and does not report individual refusals to the CFPB.
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