What must a lender do if an applicant refuses to provide details about race and gender during a face-to-face application?

When an applicant refuses to provide details about their race and gender during a face-to-face application, the lender cannot make assumptions or guesses about these characteristics based on visual appearance. Instead, the lender must adhere to regulations established to prevent discrimination and ensure fairness in the lending process.

The correct response would align with the requirement that lenders should not pressure applicants into providing demographic information if they choose to withhold it. It is crucial for lenders to respect an applicant's choice and follow equal opportunity laws. In scenarios where applicants do not provide this information, lenders should keep records of the application but do not guess or assume what the information might be. The collection of such demographic data is typically for monitoring fair lending practices and compliance but is not obligatory upon the applicant, especially if they lack willingness to disclose it.

Lenders must also not misinform applicants about the necessity of providing this data; refusal should not have any influence on the lending decision. This practice helps maintain the integrity of the lending process and supports the principles of non-discrimination set forth by laws such as the Equal Credit Opportunity Act (ECOA).