Thread Options
#1134880 - 02/24/09 05:19 PM Reg O- Executives Co-Signing
Tabbetha, CRCM Offline
Junior Member
Joined: Feb 2009
Posts: 44
Mississippi
When an Executive Officer co-signs a loan, is it permissible under Reg O to use the credit score of the Executive Officer to determine the interest rate on the loan or is it required to use the credit score of the person getting the loan to determine the interest rate?

Return to Top
Lending Compliance
#1134951 - 02/24/09 06:06 PM Re: Reg O- Executives Co-Signing Tabbetha, CRCM
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,710
Bloomington, IN
How do you normally determine the interest rate? If you normally determine it on the borrower's score instead of the "co-signers" score then that is how you should do it for this loan. Otherwise I would say you're giving the EO preferential treatment because they are obligated on the loan.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top

Moderator:  Andy_Z