Skip to content
GeoDataVision
Thread Options
#1563504 - 06/10/11 05:12 PM Joint Intent not needed when co-signer required
Burgess Offline
Diamond Poster
Joined: Jan 2004
Posts: 1,620
Joint Intent on a co-signer where you are requiring a co-signer.
Reg B commentary at 202.7.d.1#2 says a con-signer produced by the borrower (they picked the co-signer, we did not designate who it must be) is not a joint applicant.
So i read that as there need be no evidence of joint intent.
Application signed by 1st person, Note signed by both - and we are done. Even if the person the applicant picked to be the co-signer is the spouse.
_________________________
My views, not my employer's views.

Return to Top
Lending Compliance
#1563509 - 06/10/11 05:11 PM Re: Joint Intent not needed when co-signer required Burgess
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,633
Galveston, TX
What did the co-signer spouse bring to the transaction that the applicant spouse did not?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1563524 - 06/10/11 05:27 PM Re: Joint Intent not needed when co-signer required rlcarey
Burgess Offline
Diamond Poster
Joined: Jan 2004
Posts: 1,620
Ric - all i want is to know, do i need a joint intent form signed when i require a co-signer after i received the application from the first guy?

Reg B seems to say he is not a joint applicant and i do not need a joint intent form.
_________________________
My views, not my employer's views.

Return to Top
#1563562 - 06/10/11 05:51 PM Re: Joint Intent not needed when co-signer required Burgess
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,633
Galveston, TX
If the co-signer was a requirement to make the loan by the bank, then no joint intent is required.

I asked the other question because that is probably by far the larger issue that you are faced with........
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1563587 - 06/10/11 06:14 PM Re: Joint Intent not needed when co-signer required rlcarey
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,844
Bloomington, IN
Commentary 202.7(d)(1)

2. Joint applicant. The term “joint applicant” refers to someone who applies contemporaneously with the applicant for shared or joint credit. It does not refer to someone whose signature is required by the creditor as a condition for granting the credit requested.

202.2(e)

(e) Applicant means any person who requests or who has received an extension of credit from a creditor, and includes any person who is or may become contractually liable regarding an extension of credit. For purposes of § 202.7(d), the term includes guarantors, sureties, endorsers, and similar parties.


If the applicant and co-signer applied together you need the joint intent. If the applicant applied by themselves and the co-signer is an underwriting requirement then the joint intent is not needed.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1563883 - 06/12/11 07:08 PM Re: Joint Intent not needed when co-signer required Dan Persfull
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Quote:
Ric - all i want is to know, do i need a joint intent form signed when i require a co-signer after i received the application from the first guy?

Randy is trying to help you out. He could toss you an answer or teach you and get you the answer as well.

How about respectively responding and learning from him?
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#1564024 - 06/13/11 04:03 PM Re: Joint Intent not needed when co-signer required rlcarey
Burgess Offline
Diamond Poster
Joined: Jan 2004
Posts: 1,620
sorry Ric - didn't mean for my answer to sound the way it did. I always appreciate your answers and the details you give supporting them. Joint intent and adding co-signers is a frustrating subject for me, and the day i posted the comment was a situation where i was being pressed for a quick answer,. Thanks again for all the time you spend on BOL answering posts.
_________________________
My views, not my employer's views.

Return to Top
#1571782 - 06/29/11 07:50 PM Re: Joint Intent not needed when co-signer required Burgess
Starter Offline
Platinum Poster
Starter
Joined: Aug 2004
Posts: 513
NJ
What about if husband and wife own a house, are applying for HELOC, and the bank needs to perfect the security interest in the house, however, the husband qualifies for the LOC on his own - what documents does the wife sign?

Return to Top
#1571869 - 06/29/11 09:07 PM Re: Joint Intent not needed when co-signer required Starter
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
If they are both applying, why would you exclude her? If they both apply, you have joint applicants and need to document their intent. She would then sign everything - just like the husband.
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#1571886 - 06/29/11 09:20 PM Re: Joint Intent not needed when co-signer required David Dickinson
Starter Offline
Platinum Poster
Starter
Joined: Aug 2004
Posts: 513
NJ
as soon as I just read your reply I slapped myself and said, dugh! i knew that - thanks!!

Return to Top
#1971643 - 10/23/14 08:53 PM Re: Joint Intent not needed when co-signer required Burgess
Red Raiders Offline
Diamond Poster
Red Raiders
Joined: May 2013
Posts: 1,055
Compliance Land
What about this?

A woman owns a house and has a mortgage. Then she gets married. Wife and new husband apply jointly for rate/term refinance loan but husband is not in title.

Does notice to co-signer need to be provided to husband or since they applied jointly is he a co-borrower and this isn't necessary?
_________________________
How long until retirement?? smile

Return to Top
#1972055 - 10/27/14 01:12 PM Re: Joint Intent not needed when co-signer required Burgess
Red Raiders Offline
Diamond Poster
Red Raiders
Joined: May 2013
Posts: 1,055
Compliance Land
bump
_________________________
How long until retirement?? smile

Return to Top
#1973175 - 10/30/14 07:02 PM Re: Joint Intent not needed when co-signer required Burgess
RGS Offline
Platinum Poster
RGS
Joined: Jul 2002
Posts: 689
Home of the 8 time NCAA Champ ...
IMO he needs to sign a joint intent notice on the application because he's applying for joint credit.

Because he's applying for credit, he's a coborrower, not a cosigner and the cosigner language is not required.

Unless you want to make the case that he's not receiving the benefit of the proceeds of the loan, in which case you could make a case that he'd need the notice to cosigner, regardless of how he is titled on the credit.
_________________________
Kentucky basketball isn't a matter of life and death, it's much more important than that.

Return to Top
#1973206 - 10/30/14 07:55 PM Re: Joint Intent not needed when co-signer required RGS
Red Raiders Offline
Diamond Poster
Red Raiders
Joined: May 2013
Posts: 1,055
Compliance Land
Originally Posted By: RGS


Unless you want to make the case that he's not receiving the benefit of the proceeds of the loan, in which case you could make a case that he'd need the notice to cosigner, regardless of how he is titled on the credit.


That's the part I was unsure of. He did apply jointly and mark the app as such but since he wasn't an owner of the property I didn't know if that made him a co-borrower under Reg B but a co-signer under Reg AA.

I think I've decided that he is not a co-signer. Thanks for the input.
_________________________
How long until retirement?? smile

Return to Top
#1973289 - 10/30/14 09:58 PM Re: Joint Intent not needed when co-signer required Burgess
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,281
He is not a co-signer He applied for credit. His wife happens to own the collateral. Proceeds go to both, so both benefit
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1973290 - 10/30/14 09:59 PM Re: Joint Intent not needed when co-signer required Burgess
Red Raiders Offline
Diamond Poster
Red Raiders
Joined: May 2013
Posts: 1,055
Compliance Land
That clears it up! Thanks for the response.
_________________________
How long until retirement?? smile

Return to Top
#2086102 - 06/30/16 02:43 PM Re: Joint Intent not needed when co-signer required Burgess
Cheli Offline
Platinum Poster
Cheli
Joined: May 2013
Posts: 919
Hi- Borrower applied solely. In the middle of process, a spouse decides that they want to be on the loan; now a co-borrower. Do I need an Intent to Apply Jointly?

OR- did the original consumer technically withdraw their original credit decision, and should have re-applied jointly?


Thank you!

Return to Top
#2086103 - 06/30/16 02:44 PM Re: Joint Intent not needed when co-signer required Burgess
Cheli Offline
Platinum Poster
Cheli
Joined: May 2013
Posts: 919
*I meant credit request, not credit decision.

**Please note...my FI did NOT require a co-signer for the transaction.

Return to Top
#2086123 - 06/30/16 03:34 PM Re: Joint Intent not needed when co-signer required Burgess
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,633
Galveston, TX
Yes, you need intent.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2086130 - 06/30/16 04:01 PM Re: Joint Intent not needed when co-signer required Burgess
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
“Joint applicant. The term “joint applicant” refers to someone who applies contemporaneously with the applicant for shared or joint credit. It does not refer to someone whose signature is required by the creditor as a condition for granting the credit requested.” [Commentary to §1002.7(d)(1) #2]

The 2nd spouse didn't apply contemporaneously, but they also are not "required by the creditor as a condition for granting the credit requested." I would get the Joint Intent documentation. Why not?
"When in doubt, whip it out" is a good motto for this type of issue. smile
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#2086243 - 06/30/16 08:27 PM Re: Joint Intent not needed when co-signer required Burgess
Cheli Offline
Platinum Poster
Cheli
Joined: May 2013
Posts: 919
Thank you Randy and David...From your response, is it correct to assume that the borrower did not withdraw the original credit request just because he decided to have a co-borrower?

Return to Top

Moderator:  Andy_Z