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#1661490 - 02/07/12 02:48 PM Attorney Client Loans
La. Lady Offline
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La. Lady
Joined: May 2001
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We will loan a consumer money with the attorney as a co-borrower. On HPML loans, we must prove income on the attorney? Is that correct? The attorney in one particular case gave a financial statement that was self stated. In my opinion this isn't actually proof....Loan officers are already upset because they don't think that we should have to prove income on our attorney client loans.....How should we handle this?
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Lending Compliance
#1661520 - 02/07/12 03:29 PM Re: Attorney Client Loans La. Lady
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
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Bloomington, IN
You must verify the income and assets relied on to determine the ability to repay. See the Commentary to 226.34(a)(4)(ii) Verification of repayment ability.
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#1661555 - 02/07/12 04:22 PM Re: Attorney Client Loans Dan Persfull
La. Lady Offline
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La. Lady
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Posts: 1,873
Thanks...
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#1661562 - 02/07/12 04:30 PM Re: Attorney Client Loans La. Lady
rlcarey Offline
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rlcarey
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Galveston, TX
Not to your question, however: Why would an attorney personally co-sign a loan with a client? It would totally jeopardize the attorney-client relationship? I have never seen this in all my days of banking...... Something smells a little fishy here.
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#1661581 - 02/07/12 05:06 PM Re: Attorney Client Loans rlcarey
La. Lady Offline
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La. Lady
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I don't know why they do it and of course, I don't know anything about the laws regarding attorney client relationships..... All I know is that I've been here for almost 30 years, and we have always had such loan. Examiners review them and have never indicated that this is a problem.....but as we all know there is always a first time...
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#1661595 - 02/07/12 05:39 PM Re: Attorney Client Loans rlcarey
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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Originally Posted By: rlcarey
Not to your question, however: Why would an attorney personally co-sign a loan with a client? It would totally jeopardize the attorney-client relationship? I have never seen this in all my days of banking...... Something smells a little fishy here.

I wondered the same thing. I have never come across this and would be very suspicious if I saw an attorney guaranteeing a loan to a client.
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Kathleen O. Blanchard, CRCM "Kaybee"
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