Mortgage administrators, brokers and lenders now trigger client identity verification at first transaction, matching real estate rules

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The regulations now require mortgage administrators, mortgage brokers, and mortgage lenders to verify a client's identity the very first time that obligation arises — the same standard that already applied to real estate brokers, sales representatives, real estate developers, and title insurers. Previously, most reporting entities outside that real estate group had to verify identity a second time before a formal business relationship was deemed to exist. This change means mortgage sector firms must treat the initial verification event as the start of a business relationship, bringing their compliance processes in line with other real estate-adjacent entities. Separately, the description of non-profit organizations subject to enhanced scrutiny has been adjusted from those that solicit "charitable donations" to those that solicit "financial donations" from the public, slightly broadening the language. Mortgage administrators, brokers, and lenders should review their client onboarding and record-keeping procedures to ensure business relationship obligations are triggered from the first verification.

Who this affects
mortgage administrators · mortgage brokers · mortgage lenders · real estate brokers and sales representatives · not-for-profit organizations that solicit public donations