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#2085011 - 06/24/16 01:19 PM Adding an Applicant after LE has been provided
Likes to Comply Offline
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In the mountains
If an applicant is added after the LE has been provided, would you redisclose the LE adding the additional applicant and provide the revised LE to all the applicants or just the new applicant added (loan amount and fees were not affected)?
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TRID - TILA/RESPA Integrated Disclosures Rule
#2085015 - 06/24/16 01:29 PM Re: Adding an Applicant after LE has been provided Likes to Comply
raitchjay Online
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OK
I wouldn't re-issue an LE (unless at some point i had a valid changed circumstance affecting fees)....i'd show the new borrower on the initial CD.
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#2085016 - 06/24/16 01:35 PM Re: Adding an Applicant after LE has been provided Likes to Comply
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
The LE only has to be provided to one of the applicants that will be primarily liable on the debt.
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#2085021 - 06/24/16 01:54 PM Re: Adding an Applicant after LE has been provided Likes to Comply
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In the mountains
So there is no problem providing the newest applicant a copy of the LE that is corrected to include the all the applicants involved, or just making the correction on the CD, or if we choose to giving everyone a revised copy of the LE so that they have the current information - right?
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#2085026 - 06/24/16 02:24 PM Re: Adding an Applicant after LE has been provided Likes to Comply
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
The regulation only requires one copy of the LE be provided to an applicant that will be primarily liable on the debt. You have already done this.

The regulation also only requires one copy of the CD be provided to a borrower that will be primarily liable on the debt. The exception is any consumer who has to the right to rescind must also receive a copy of the CD.

Update the information when you issue the CD
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#2085069 - 06/24/16 03:42 PM Re: Adding an Applicant after LE has been provided Likes to Comply
Luv2run Offline
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Did the additional borrower add an additional credit report fee? If so that would be a Service You Cannot Shop for and would be zero tolerance item you would need to disclose on an amended LE. I know not all banks charge the credit fee to the customer so it may be a non issue. Just wanted to throw that out there just in case.
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#2085152 - 06/24/16 06:33 PM Re: Adding an Applicant after LE has been provided Likes to Comply
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In the mountains
I'm not trying to split hairs but we don't consider any applicant to be primarily liable over the other co-applicants. Aren't they all equally liable on the debt? We give a copy to everyone. It hasn't been any more work for us and we feel like everyone is informed of the loan terms.

But if "primarily" liable is the first person listed on the note, then in this case we owed the new applicant an LE because he was moved to first place on the disclosures, Note, Deed and for underwriting consideration because he lives in the home. The original applicants are his siblings who have better credit history and therefore applied with him or rather ahead of him.

We don't charge for credit report fees so adding the applicant didn't change any costs of the loan.
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#2085153 - 06/24/16 06:35 PM Re: Adding an Applicant after LE has been provided Likes to Comply
John Burnett Offline
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John Burnett
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Cape Cod
"primarily" liable means the lender can go directly to the party for payment. It's not a guarantor, for example.
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#2085156 - 06/24/16 06:48 PM Re: Adding an Applicant after LE has been provided Likes to Comply
Docs Offline
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Generally every party signing the note is primarily liable for repayment of the debt. TRID is complied with if any one such person receives the disclosures (subject to the exception Dan noted for persons who have a right to rescind, when applicable) regardless of any "order" in which a person may appear on the note or other loan papers or documents.
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#2085171 - 06/24/16 07:10 PM Re: Adding an Applicant after LE has been provided Likes to Comply
John Burnett Offline
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John Burnett
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Cape Cod
All of this said, there is no violation in providing the LE and/or CloD to all applicants/borrowers.
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#2085178 - 06/24/16 07:28 PM Re: Adding an Applicant after LE has been provided Likes to Comply
Docs Offline
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^ Agree, and it is probably a good customer service practice, especially if the borrowers are unrelated and/or not cohabiting.
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