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#2090590 - 07/29/16 03:47 PM Definition of Cosginer vs. Co-borrower
NoJustNo Offline
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Can anyone point me to how to handle addressing who is a cosigner vs. a co-borrower now that Reg. AA has been repealed? I used to rely on the Reg. AA definition of cosigner. We're dealing with people being added to a loan as a co-borrower that are not receiving benefit of the loan (check is payable to only one party) and the loan officer was relying on the "co-borrower's" credit worthiness.

Thanks!
Last edited by Eagle; 07/29/16 03:47 PM.
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#2090608 - 07/29/16 04:09 PM Re: Definition of Cosginer vs. Co-borrower NoJustNo
rlcarey Offline
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For what purpose?
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#2090618 - 07/29/16 04:23 PM Re: Definition of Cosginer vs. Co-borrower NoJustNo
NoJustNo Offline
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consumer purpose

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#2090634 - 07/29/16 04:41 PM Re: Definition of Cosginer vs. Co-borrower NoJustNo
rlcarey Offline
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No, I mean why are you trying to figure out the definition. For what purpose - not what the purpose of the loan might be. Why does it matter?
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#2090643 - 07/29/16 04:51 PM Re: Definition of Cosginer vs. Co-borrower NoJustNo
NoJustNo Offline
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I have a loan officer that doesn't want to believe me that a "co-borrower" that doesn't have access to the loan proceeds should be considered a cosigner and not only a co-borrower.

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#2090644 - 07/29/16 04:52 PM Re: Definition of Cosginer vs. Co-borrower NoJustNo
swiggles Offline
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I think that's what she's asking. Does it matter? We no longer have to provide a co-signer notice so we can label obligors in any manner we choose?
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#2090648 - 07/29/16 04:57 PM Re: Definition of Cosginer vs. Co-borrower NoJustNo
rlcarey Offline
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" We no longer have to provide a co-signer notice so we can label obligors in any manner we choose?"

If banks are getting rid of their co-signor notice process, I suggest that they are doing it at their own risk.
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#2090651 - 07/29/16 05:00 PM Re: Definition of Cosginer vs. Co-borrower NoJustNo
NoJustNo Offline
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Would the Credit Practices Rule come into play here? I have concerns about labeling someone as a "co-borrower" that is really acting as a co-signer.

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#2090652 - 07/29/16 05:01 PM Re: Definition of Cosginer vs. Co-borrower NoJustNo
rlcarey Offline
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Credit Practices Rule - if you are referring to Regulation AA, it has been repealed.
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#2090667 - 07/29/16 05:14 PM Re: Definition of Cosginer vs. Co-borrower NoJustNo
NoJustNo Offline
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#2090715 - 07/29/16 07:12 PM Re: Definition of Cosginer vs. Co-borrower NoJustNo
NoJustNo Offline
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I'm guessing that this doesn't apply but it still seems like poor form to not provide notice to the cosigner (that's being called a co-borrower).

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#2090736 - 07/29/16 07:55 PM Re: Definition of Cosginer vs. Co-borrower NoJustNo
rlcarey Offline
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#2090746 - 07/29/16 08:23 PM Re: Definition of Cosginer vs. Co-borrower NoJustNo
NoJustNo Offline
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Thank you! I really appreciate it!

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