If your mortgage lender appears to pay a bit more attention to your identifying information when you apply for a mortgage or home equity line of credit, don't be alarmed.

It's a terror check.

Right now, real estate settlements and closings aren't covered, but a provision of the federal USA Patriot Act of 2001, effective Oct. 1, 2003 requires banks and trust companies, savings associations, credit unions, securities brokers and dealers, mutual funds, futures commission merchants, and futures introducing brokers to verify your identity when you open a new account.

Spawned by the terrorist attacks of Sept. 11, 2001, the Patriot Act authorizes the federal government to put you under the microscope in many ways. It's the same law that gives federal agents the right to search your library records, monitor which Web sites you visit and make you remove your shoes before boarding a commercial plane.

Under Section 326, the law is also triggered when you apply for money secured by your home -- unless you use a pawn shop, casino or money-by-wire office, establishments that may be included in the next round of rules, but which are not now included.

Covered financial institutions must request proof of your name, address, date of birth and Social Security number when you apply for a mortgage or home equity line of credit -- even if you are long time customer opening a new account.

Financial institutions must also compare your name against a government list of known or suspected terrorists.

Lenders say you may not even notice the stepped up surveillance, because they've been eying your information closely in recent years because of the growth in identity theft and fraud.

Lenders have a vested interest in knowing who you really are and other federally mandated information reporting practices have been in place for years.

Now, however, the financial institution must have in place certain procedures to verify your identity within a reasonable period of time.

That could mean a request to see your driver's license, passport, even certified birth certificate and your Social Security card.

Financial institutions do have some flexibility to implement procedures to verify identity in ways other than that may be appropriate to their individual circumstances.

Published: October 3, 2003

Use of this article without permission is a violation of federal copyright laws.

Broderick Perkins parlayed a career in old-school journalism into a contemporary digital news service that really hits home. The award-winning consumer journalist, originally from Wilmington, DE, is founder, publisher and executive editor of the bootstrap DeadlineNews Group, a Silicon Valley-based editorial content and consulting service specializing in residential real estate, consumer news and related editorial consulting services. The DeadlineNews Group includes the website, DeadlineNews.com, offering real estate editorial content and consulting services, and its back shop, the Deadline Newsroom, an open house on news that really hits home. Perkins obtained his formal journalism education from University of Delaware and a journalism boot camp, the Institute of Journalism Education at the University of California-Berkeley. He went on to 20 years of service as a daily newspaper journalist at the Wilmington, DE News Journal and San Jose, CA Mercury News. Perkins covered housing on the San Jose Mercury News reporting team which earned a General News Reporting Pulitzer Prize in 1989 for coverage of the Loma Prieta earthquake. He has also produced real estate, consumer and small business content for the Wall Street Journal, Los Angeles Times, RealtyTimes.com, Nolo.com, Better Homes and Gardens, the National Association of Realtors, Homestore/Move and Intuit/Quicken among more than three dozen publications. In addition to managing the DeadlineNews Group, Perkins most recently served as chief editorial consultant for Nolo's Essential Guide To Buying Your First Home, Nolo, and writes real estate television scripts for RealtyTimes.com.