Final answer:
When filling out a 1003 loan application, the customer does not need to answer questions about their ethnicity and race for government monitoring purposes.
Step-by-step explanation:
When helping a customer fill out the 1003 loan application, there are 5 government monitoring questions that the customer does not need to answer. These questions pertain to the borrower and co-borrower's ethnicity and race. The customer is not required to furnish this information, but they are encouraged to do so. If they choose not to provide this information, the lender is required to note it based on visual observation and the surname.