Has anyone shared a commercial loan form to be used as "evidence of intent"? If so, how do I access it?

here is one you might look at. Also, if you'll go back several posts, LoisLane has a good one further up the page or previous page!

well, I don't know what I'm doing, but the link isn't working for me...here it is in "long hand"...www.bankersonline.com/tools/tools/html

Sorry, but I cannot get this link to work, nor will the longhand. I think the computers are just as confused about this issue as we are. thanks.

let's try it again! Hopefully, this one WILL work! Thanks to GreatBlue, btw!

I'm interested if anyone has considered the following question? Can one spouse sign the evidence of intent to apply for joint credit for another spouse under a valid Power of Attorney? It's an idea I've heard proposed for use primarily in connection with Ag lending. Any thoughts?

I asked this basic question of the FDIC. My question was, can one spouse affirm the others intent to be joint. The answer was that you cannot assume they have a POA to do so. If they do have a POA that would facilitate borrowing, why not? Certainly it is valid for that.

Opinions please, the following statement is contained on the PFS's that my commercial lenders are using and I feel this is NOT sufficient to comply with Thursdays' deadline:
If youa re applying for individual credit in your own name and are relying on your own income or assets and not the income and assets of another person as the basis of repayment of the credit requested, or if this statement relates to your guaranty of the indebtedness of other persons, firms or corporations, complete only sections, x,y and z. There is no mention of joint applicants, etc. Do I still need language?

My bet is that you won't have a problem as it clearly states limitations for individual credit. You might run it by your regulator and type up their opinion on it.

Quote:

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If youa re applying for individual credit in your own name and are relying on your own income or assets and not the income and assets of another person as the basis of repayment of the credit requested, or if this statement relates to your guaranty of the indebtedness of other persons, firms or corporations, complete only sections, x,y and z. There is no mention of joint applicants, etc. Do I still need language?

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I'm not grasping the line of thinking here. Why are you documenting that the financial statement is not being completed jointly? What am I missing?

Because I believe that a lender would use one form for a husband and wife to complete. So there's no verbiage on the form that states "We intend to apply for joint credit".

The following is the ABA's stance on this issue. The memo was passed on to me by Nessa Feddis - an attorney with the ABA. She gave me permission to post it here.
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On April 15, creditors must comply with changes made last year to Regulation B (Equal Credit Opportunity). Included in the amendments was clarification about proof of intent for joint applications. The Board was addressing concerns raised when a signor on a loan later asserts that although he or she signed the note, he or she never intended to apply, and thus the creditor violated Regulation B by requiring the signature of an additional party when the applicant was individually creditworthy.

There has been confusion about the meaning of the changes and incorrect assertions that the regulation now requires written applications for all joint applications and that the standard Freddie Mac/ Fannie Mae residential loan application (form 1003), properly completed and signed, is not sufficient to show intent to apply for joint credit. To clear up the confusion, bankers should be aware:

• There is no new requirement that loan applications be in writing (except where elsewhere required). This is clear in the preamble to the final regulations found at: http://federalreserve.gov/boarddocs/press/bcreg/2003/20030305/attachment.pdf.

• The Fannie Mae/ Freddie Mac residential loan application (form 1003) is sufficient in showing intent to apply jointly if properly completed and signed by both applicants.

• Intent to apply jointly must be evidenced at the time of application and should be documented in some fashion. That both parties signed the loan contract does not show intent to apply jointly.

• Intent to apply jointly may be shown through a written indication from the applicant, but this is not required. Procedures that document intent to apply jointly suffice. For example, a note to the file based on an oral joint application may be sufficient in appropriate circumstances.

• Creditors cannot presume that submission of joint financial information constitutes an application for joint credit.
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Nothing we all didn't know already Dave, right? I'm still stressed about my commercial lending area and their PFS.

I definitely appreciate hearing the ABA's position because they do speak with authority. But I think this is one of those compliance issues where the big challenge is not in determining what the reg requires, but in determining a procedure that will meet those requirements. Flexibility is a double edged sword. We're all left to try to find something that will insure compliance but won't be overly burdensome and impractical for lenders and customers.

What's the ABA's basis for their position that the Fannie 1003 is adequate. Doesn't that conflict with what some of you have reported from the regulators?

I'm also still not sure what is necessary in a very common scenario where there are joint applicants (such as husband and wife) but only one comes into the bank to conduct the face to face application. Earlier discussions on this topic reported that at least some of the agencies will not accept one applicant making a statement on behalf of the other in a phone application. Isn't it the same problem in a face to face with only one of the joint applicants present?

I appreciate Dave's posting of the ABA's position. That I can live with. But what of the FDIC's position. They are our regulator. I will find out in mid-May, as one of my bank's is scheduled for a compliance exam. And believe it or not, the examiner said one of the things they will concentrate on is....drum roll....Reg B.

Thanks for the info David! (when I tried the link it didn't work. Anyone know where we can find it on their site?) Thanks.

Try this: FRB Reg B