Hi everyone

We have a situation where we are using a daughter's mom as a cosigner. The lender wants to use the mom's 2 month old mortgage application for the installment loan. My worry is that the mortgage application has GMI on it. Being that this is a cosigner situation, does that come into play?

I don't understand what you mean by "use" the old application. You mean consider her current loan request based on a completely different loan request, for a different product, at a different time?

They would like to "use" the information on the old application and apply it to the new loan in which they would like that person to cosign for.

They would like her to co-sign, or she has volunteered to co-sign? I don't see what an old application FORM has to do with a new loan REQUEST, unless you're just talking about getting her date of birth, home address, etc. from the old form.

Yes, basically date of birth, address and all of that. I am assuming that she has volunteered to cosign for her daughter's loan. I am not sure of the ins and outs but it appears that we have that old application in file as a reference.

There's no regulatory requirement to have a written application for a car loan - only on purchase or refinance of principle dwellings. So this really is a question of your bank's procedures. If the loan officer copies the "old" application, be sure GMI information is copied as this would be a violation of Reg B (over collection of GMI on a non-applicable loan).

Thank you David. I wasn't comfortable about having the actual application in the file as I believe it to have GMI information. I appreciate your response.