Loan Guaranteed, Not Cosigned – Compliance Issues?
Answer by Randy Carey, BOL Guru Guru Bio
Question: We have a consumer loan customer who doesn't qualify on his own, and his grandfather wants to guarantee the loan rather than co-sign for it. Since he would not be signing the Note Disclosure or Security Agreement, is there a compliance issue?
Answer: Your guarantee would have to include the Reg AA - Notice to Co-signer. Co-signer, guarantor, etc., are basically one in the same when it comes to Reg AA.
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