Final answer:
The information required by Regulation X on a loan application includes the borrower's name, contact details, Social Security number, income, employment details, and property information. It may also entail voluntary disclosure of ethnicity and race for government monitoring. Lenders furthermore may require cosigners or collateral for loan security.
Step-by-step explanation:
According to Regulation X, which is associated with the Real Estate Settlement Procedures Act (RESPA), the pieces of information from a borrower that must be included on a loan application are comprehensive. This includes the name and contact information of the borrower, their Social Security number, income and employment information, and details about the property being financed. Additionally, there are government monitoring purposes where a lender might collect information on ethnicity and race, but the borrower is not required to provide this; it is optional and used to ensure compliance with equal credit opportunity, fair housing, and home mortgage disclosure laws.
In practice, financial institutions will also focus on evaluating an individual's past borrowing through a credit check, may require a cosigner for added security, or insist on collateral that can be seized and sold if the loan is not repaid, to reassure bank decisions in the face of imperfect information about a borrower's creditworthiness.