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#1890924 - 01/27/14 10:35 PM Joint intent and affiliates
Borg3of11 Offline
Junior Member
Joined: May 2012
Posts: 31
John,

Would two affiliated business still be required to sign a joint intent when applying for joint credit?
Last edited by John Burnett; 01/28/14 12:30 AM.
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Lending Compliance
#1890992 - 01/28/14 01:39 PM Re: Joint intent and affiliates Borg3of11
brownbeard Offline
Member
Joined: Nov 2013
Posts: 56
I'm not John, but I'll give it a go:

Nobody's required to sign anything to evidence joint intent.

What's required is that their intent be recorded at the time of their application.

This applies both to entities and natural persons.

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#1891288 - 01/28/14 06:56 PM Re: Joint intent and affiliates Borg3of11
Borg3of11 Offline
Junior Member
Joined: May 2012
Posts: 31
Hey, Brownbeard, I'll take that answer. I can't find anything other than two businesses under common ownership applying for credit are considered joint applicants thus indicating that they are applying for joint credit! Even REg B only mentions affiliates twice and not in the joint intent section. Oh well. Thank you for responding!

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#1891635 - 01/29/14 04:13 PM Re: Joint intent and affiliates Borg3of11
brownbeard Offline
Member
Joined: Nov 2013
Posts: 56
They're considered joint applicants if they intend to apply jointly. As opposed to if you require one to guaranty the request of the other. (That's a question for the Fair Lending Forum)

In summary, their intent at the time of application is the issue, not the commonality of ownership. Hope that makes it more clear.

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#1891638 - 01/29/14 04:15 PM Re: Joint intent and affiliates Borg3of11
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,605
Galveston, TX
You also need to ask your legal counsel about this loan. Joint non-person applicants outside of an offical joint venture??? Don't see banks going down that road too often.
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