If the loan is made to a business (LLC), and also has the individual's name on the note and has signed the note as the name of the business, then his name as well would we report GMI on that individual? Also the loan officer had them fill out a guarantor form as guarantees for the loan as well.

Thank you.

Are the business and the individual co-borrowers? Or is the individual signing as a guarantor?

Well, they did sign the guarantor forms, but on the note it is listed...ABC Investments, LLC, then also Individual's name. And it's signed, ABC Investments, LLC, then the second line the individual signed his name. That's why I am confused...because they are on the note, but also signed the guarantor form as well.

If the individual is a true co- borrower (and it appears from your description that they are), then GMI needs to be completed on the individual, as long as the loan is HMDA reportable.

Ok. Thanks.

Agree with Melissa. determine whether they are just a guarantor or a co-borrower. good luck!

Well most of our loan officers have the co-borrower sign a guaranty form and they are on the note and sign the note. But not all of our loan officers do this so I have some like this and then some where the loan is just in the business name, then there is a guarantor and on those I do not report them as co-borrowers, because the note is only typed in the business' name. So I'm really unsure what I should carry out and do.

Also, I am wanting to make sure I am doing our loans correctly that are in a Revocable Trust name as well. If the loan is in the Trust name would it be just not applicable for the ethnicity, race or national orgin, and the sex, and then use the first name of the individual as the co-borrower and report their GMI? Also, what about the income? On Trust loans would the income be N/A?

But not all of our loan officers do this so I have some like this and then some where the loan is just in the business name, then there is a guarantor and on those I do not report them as co-borrowers. . .
I'm not certain of your exact scenarios, but I think you've got some big Reg B issues here that go way beyond GMI.

If a loan is made to a legal entity, you need a resolution to indicate who can represent that entity. Then you have those people sign the loan as representatives of the entity. THEY are not legally liable. They are only representing the entity. (I.e. A loan to my company would be signed by "Dave Dickinson, President").

Next Reg B allows you to require officers, directors, shareholders and partners to guarantee the loan, but it doesn't allow you to make these people sign the loan as co-borrowers. Please study these two regulatory references:

“...a creditor shall not require the signature of an applicant’s spouse or other person (other than a joint applicant) on any credit instrument (any legal liability document) if the applicant qualifies under the creditor’s standards of creditworthiness for the amount and terms of the credit requested.” [§1002.7(d)(1)]

“A guarantee on an extension of credit is part of a credit transaction and therefore subject to the regulation. A creditor may require the personal guarantee of the partners, directors, or officers of a business, and the shareholders of a closely held corporation, even if the business or corporation is creditworthy. The requirement must be based on the guarantor's relationship with the business or corporation, however, and not on a prohibited basis. For example, a creditor may not require guarantees only for women–owned or minority–owned businesses. Similarly, a creditor may not require guarantees only from the married officers of a business or married shareholders of a closely held corporation.” [Commentary to §1002.7(d)(6)#1]

Can I add to this with yet another question? We have a loan to an entity that is signed on the Note with two company officers (signing the note corporately). They also both signed the note personally. So we have four signatures. What does HMDA say about gathering GMI when you have more data than the LAR requires? Since we have two corporate signatures, do we need to report GMI on the Humans who signed personally? I am thinking that we can check the boxes 4,5 - 7,8 - 4,5 (NA - no coapplicant).
Or since a human signed personally, do we need to include one of them?

You need to collect GMI on all applicants but you only report GMI on the first 2 (since that's all there is room for on the LAR).

If they singed representing the company and as individuals, you have 3 applicants (the company, officer 1 and officer 2). Collect GMI on the 2 individuals and complete the LAR with applicant 1 as the company and applicant 2 as the first officer IOW, you need to include one of them..

OK, thanks Dave.

Just re-read my last post. I meant "signed", not "singed". Can't edit the post, but I assume you all know what I meant.

New HMDA has singed me!