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#1921802 - 05/09/14 04:34 PM Joint Intent and Intent to Proceed
BankingNut Offline
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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.

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#1921808 - 05/09/14 04:38 PM Re: Joint Intent and Intent to Proceed BankingNut
raitchjay Online
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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.
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#1921821 - 05/09/14 04:55 PM Re: Joint Intent and Intent to Proceed BankingNut
swiggles Offline
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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.
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#1921848 - 05/09/14 05:23 PM Re: Joint Intent and Intent to Proceed BankingNut
Rocky P Offline
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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.
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#1921857 - 05/09/14 05:35 PM Re: Joint Intent and Intent to Proceed BankingNut
Truffle Royale Offline

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Caveat on Rocky's post: you cannot get intent to proceed at time of application unless you give the GFE&TIL first. As was stated above, intent to proceed and joint intent are requirements of different Regs and don't stand for each other. From the sounds of things, this was NOT a face to face app, so imho, the best you can do is have a final application signed at the closing table that includes signatures on the top of p.1 of the 1003 to indicate joint intent. At this point in time, all you can really do is band aid the situation.

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#1921859 - 05/09/14 05:35 PM Re: Joint Intent and Intent to Proceed BankingNut
Kathleen O. Blanchard Offline

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Agreed. One cannot stand for the other. If your standard practice is a signature from the applicants for joint intent, you need to document that joint intent was discussed and subsequently obtained in writing to comply with policy (if your policy requires written joint intent from applicants).
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#1921946 - 05/09/14 07:20 PM Re: Joint Intent and Intent to Proceed BankingNut
swiggles Offline
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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.
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#1921979 - 05/09/14 08:02 PM Re: Joint Intent and Intent to Proceed BankingNut
hgliii Offline
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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.

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#1921980 - 05/09/14 08:05 PM Re: Joint Intent and Intent to Proceed BankingNut
swiggles Offline
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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.
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#1921981 - 05/09/14 08:05 PM Re: Joint Intent and Intent to Proceed BankingNut
Kathleen O. Blanchard Offline

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#1921987 - 05/09/14 08:16 PM Re: Joint Intent and Intent to Proceed BankingNut
swiggles Offline
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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.
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#1921989 - 05/09/14 08:16 PM Re: Joint Intent and Intent to Proceed BankingNut
Kathleen O. Blanchard Offline

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Yep!
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#1922002 - 05/09/14 08:54 PM Re: Joint Intent and Intent to Proceed BankingNut
BankingNut Offline
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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
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#1922014 - 05/09/14 09:30 PM Re: Joint Intent and Intent to Proceed BankingNut
swiggles Offline
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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.
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#1941434 - 07/16/14 01:37 PM Re: Joint Intent and Intent to Proceed BankingNut
Lilly2pet Offline
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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?

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#1941439 - 07/16/14 01:44 PM Re: Joint Intent and Intent to Proceed BankingNut
Dan Persfull Offline
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Joint intent must be established at the time of application. Your documentation shows it was not established until the loan closed.
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