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#1747953 - 10/10/12 02:37 PM Prohibit the use of Co-signers
Tesla Offline
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Joined: Nov 2003
Posts: 3,726
Can a bank prohibit lenders from accepting applications with co-signers? Or can they require the co-signer to be a co-borrower instead?
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Lending Compliance
#1747973 - 10/10/12 02:56 PM Re: Prohibit the use of Co-signers Tesla
COMPLIcated Offline
Diamond Poster
Joined: Mar 2003
Posts: 1,035
OK
We pretty much treat ours as a co-borrower but if they really are not getting the benefit of the funds then we also have them sign the Notice to Cosigner as well.

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#1748121 - 10/10/12 05:22 PM Re: Prohibit the use of Co-signers Tesla
Tesla Offline
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Joined: Nov 2003
Posts: 3,726
Playing devil's advocate here, if I walk into the bank wanting to be a co-signer but you make me a co-borrower but provide me with a co-signer notice - couldn't that be misleading?
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#1748125 - 10/10/12 05:28 PM Re: Prohibit the use of Co-signers Tesla
waldensouth Offline
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waldensouth
Joined: Nov 2001
Posts: 7,985
FINALLY ABOVE the gnat line
The only difference between a co-signer and a co-borrower is that the co-borrower is supposed to get the benefit of the proceeds of the loan. They both sign the face of the note and are immediately liable for the loan. Failure to provide the notice to co-signer would be misleading.
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#1748133 - 10/10/12 05:38 PM Re: Prohibit the use of Co-signers Tesla
Tesla Offline
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Joined: Nov 2003
Posts: 3,726
Thanks waldensouth and COMPLIcated!
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