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MLO’s are not authorized to ask direct questions whilst gathering data or information pursuant to the HMDA’s limitations. These direct questions are not to be in connection with the borrower’s demographic data. An alternative to make use of would be to let the borrower himself disclose data relevant to his race in place of the MLO doing it for him. We should also note that more than one option for race can be chosen from.
The act of gathering data regarding the applicant’s race is plainly to regulate and ensure acquiescence with fair lending legislation. It is crucial to appreciate that there is no obligation on the borrower to set forth the information. Apart from this, the MLO is also not allowed to inquire into the applicant’s age however can ask for the date of birth instead.
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