Thread Options
|
#1921802 - 05/09/14 04:34 PM
Joint Intent and Intent to Proceed
|
Member
Joined: Apr 2010
Posts: 90
|
Has anyone had any experience with documenting joint intent and intent to proceed? We have a loan where our LO did not document joint intent at application. But he did get an intent to proceed a few days later. The intent to proceed was signed by both parties. This certainly suggests that the applicants intended proceed.
What are your thoughts.
|
Return to Top
|
|
|
|
#1921808 - 05/09/14 04:38 PM
Re: Joint Intent and Intent to Proceed
BankingNut
|
Power Poster
Joined: Oct 2009
Posts: 9,105
OK
|
My thoughts are that joint intent should be gathered at application and you note that "a few days later" intent to proceed was obtained, so i don't see how it would help you with the joint intent issue.
_________________________
I'm fixin' to fix that.
|
Return to Top
|
|
|
|
#1921821 - 05/09/14 04:55 PM
Re: Joint Intent and Intent to Proceed
BankingNut
|
Power Poster
Joined: Aug 2001
Posts: 7,351
|
We establish joint intent at application either by signatures on the application form or by the loan officer noting that joint intent was established verbally via phone. For joint intent, our mortgage department has a document signed because investors require it (or so they say). In-house, the customer submitting financial info to the bank after being provided with early disclosures is evidence of intent.
I think "joint intent" (ECOA) and "intent to proceed" (RESPA) are two separate rules for two separate purposes....one can't stand for the other.
_________________________
The more you sweat in training, the less you bleed in battle.......
|
Return to Top
|
|
|
|
#1921848 - 05/09/14 05:23 PM
Re: Joint Intent and Intent to Proceed
BankingNut
|
Power Poster
Joined: Jun 2003
Posts: 7,659
Florida
|
There are two different things here, the customer's intent to proceed and the customer signing a paper indicating that they intended to proceed.
If there was an indication at application to proceed, I would have the LO document it as such, and indicate that after realizing that there was nothing signed (if policy) the paper was subsequently signed.
_________________________
Integrity. With it, nothing else matters. Without it, nothing else matters.
|
Return to Top
|
|
|
|
#1921946 - 05/09/14 07:20 PM
Re: Joint Intent and Intent to Proceed
BankingNut
|
Power Poster
Joined: Aug 2001
Posts: 7,351
|
More than one of our lenders has had the mistaken idea that joint intent is permission for the bank to obtain a credit report. Grrrr.
_________________________
The more you sweat in training, the less you bleed in battle.......
|
Return to Top
|
|
|
|
#1921979 - 05/09/14 08:02 PM
Re: Joint Intent and Intent to Proceed
BankingNut
|
Platinum Poster
Joined: Mar 2012
Posts: 574
|
Swiggles not sure of problem. If the application is joint intent to apply for loan, it appears you have a permissible purpose to order a credit report.
|
Return to Top
|
|
|
|
#1921980 - 05/09/14 08:05 PM
Re: Joint Intent and Intent to Proceed
BankingNut
|
Power Poster
Joined: Aug 2001
Posts: 7,351
|
Right.....my point is that the joint intent statement is a Reg B statement to evidence the fact that both applicants want to apply together. Permissible purpose to obtain a report is FCRA....and NO signature is required to obtain a credit report.
_________________________
The more you sweat in training, the less you bleed in battle.......
|
Return to Top
|
|
|
|
#1921981 - 05/09/14 08:05 PM
Re: Joint Intent and Intent to Proceed
BankingNut
|
10K Club
Joined: Dec 2000
Posts: 21,293
|
|
Return to Top
|
|
|
|
#1921987 - 05/09/14 08:16 PM
Re: Joint Intent and Intent to Proceed
BankingNut
|
Power Poster
Joined: Aug 2001
Posts: 7,351
|
I know.....sometimes I just want to beat my head against the wall......seems all we do is training for those who don't bother to listen.
_________________________
The more you sweat in training, the less you bleed in battle.......
|
Return to Top
|
|
|
|
#1921989 - 05/09/14 08:16 PM
Re: Joint Intent and Intent to Proceed
BankingNut
|
10K Club
Joined: Dec 2000
Posts: 21,293
|
|
Return to Top
|
|
|
|
#1922002 - 05/09/14 08:54 PM
Re: Joint Intent and Intent to Proceed
BankingNut
|
Member
Joined: Apr 2010
Posts: 90
|
I feel like my question was poorly asked or the thread got off track. Reg. B's joint intent requirement can be satisfied in any number of ways. What it cannot be satisfied with are documents that have nothing to do with intention such as a joint PFC or documents pertaining to the value of collateral.
However, intent to proceed indirectly affirms intention to apply because it states that as the "applicants" they intend to "proceed with the application for credit".
There is a violation in that joint intent is required "at application" and intent to proceed can take place 3 days after a completed application.
I have a finding, and I realize that. At a minimum I have that joint intent was not obtained at a proper time. However, there are other was to document "joint intent". Joint intent does not need to be on a signed application document, nor does there even have to be a signed application document. I am far more willing to agree with Truffle Royal's post. The joint intent provisions come into play when one party tries to get out of a loan (usually through divorce) and one party claims they were coerced by the loan officer. The intent to proceed language seems to make it hard to assert coercion by the loan officer.
Last edited by BankingNut; 05/09/14 08:55 PM. Reason: move one term
|
Return to Top
|
|
|
|
#1922014 - 05/09/14 09:30 PM
Re: Joint Intent and Intent to Proceed
BankingNut
|
Power Poster
Joined: Aug 2001
Posts: 7,351
|
Your last paragraph.....yes. I agree. However, I like to use "model" stuff because I feel like there is a safe harbor there. The model Reg B ap has a joint intent statement at the top. So even if the loan officer verifies joint intent by phone, he/she notates that fact right there on those lines. For loan requests for which no application is used (typically only business-purpose loan requests here at my bank), we have a separate "joint intent" form. That way, no officer gets creative with documentation and usually, believe it or not, no one forgets. And examiners don't have to hunt for documentation. It's the same for every application....either an application form with joint intent completed or the separate form.
_________________________
The more you sweat in training, the less you bleed in battle.......
|
Return to Top
|
|
|
|
#1941434 - 07/16/14 01:37 PM
Re: Joint Intent and Intent to Proceed
BankingNut
|
100 Club
Joined: Feb 2014
Posts: 150
Land of Pine Trees and Lobster...
|
We used a separate document to obtain "joint intent" that was created/issued with a document date of day of application but borrowers signed and dated day of loan closing. Violation?
|
Return to Top
|
|
|
|
#1941439 - 07/16/14 01:44 PM
Re: Joint Intent and Intent to Proceed
BankingNut
|
10K Club
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
|
Joint intent must be established at the time of application. Your documentation shows it was not established until the loan closed.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
|
Return to Top
|
|
|
|
|
|