Before this form, your proof of identity happens at the end of the loan process, at the moment when you sign with the notary. With this form, you have to show your ID at the beginning of the process instead.

Funny you should mention this.
That's exactly not how it happened with me.

Two days before I met with the notary (which was three months after I applied for the loan!) they called me up and said "The notary comes day after tomorrow. Be sure to bring two Xerox copies of your drivers license and two Xerox copies of your Social Security card or passport."

Two days later the notary said, "Hey, what are those things for? I just need to see your driver's license. I guess you're supposed to send those copies back to the bank with your loan package or something."