I'm hearing conflicting opinions on the standard Fannie/Freddie application, and I'd like to know what you're doing in your shop, now that the new Reg. B rule is in effect.

Fannie is stating that the application is fine, and they aren't changing it. FICC cautions that it doesn't adequately demonstrate intent to apply jointly. Are you doing anything differently, or have your investors come out with any new requirements?

We are not doing anything differently. Since FNMA isn't changing the form and (if I'm not mistaken) the sample form in Reg B hasn't been changed, I'm comfortable with what we are doing on residential loans.

This was in my ABA e-mail on Friday morning:

"ABA, FED CLARIFY NEW REG B RULES

ABA, in consultation with the Federal Reserve and in response to questions from bankers, provided clarification of certain changes to Regulation B regarding proof of intent for joint applications that went into effect April 15. Briefly: There is no new requirement that loan applications be in writing (except where required elsewhere); the Fannie Mae/ Freddie Mac residential loan application (Form 1003) is sufficient for 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 (both parties signing 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.); and creditors cannot presume that submission of joint financial information constitutes an application for joint credit. For more information, contact ABA’s Nessa Feddis."

So, if the Freddie app is signed by both applicants, we are accepting that as proof of intent to apply jointly. At least until some other guidance comes out that reverses it all yet again!