We have an online real estate application, where customers can complete the application and submit. During the application process, there is a section where applicants indicate joint intent. My external auditor is questioning whether we really obtained it from both parties, since theoretically only one person could complete the application. He questioned how we know both parties expressed intent. The hang up isn't with our closed loans, where we have the application signed, but with our denials and withdrawals where we might not have a signature. The regulation does not specifically say you have signatures, but I cannot find where it allows one party to express intent for the other. Has anyone else had this come up?

Has anyone else had this come up?

No. I think it is more of a problem with your auditor. It would invalidate the use of any and all electronic application submissions for joint applications.

I agree with Randy, people get joint intent online all the time. I have heard of criticism for not getting joint intent from both applicants in online applications (only one box), but proving that each applicant gave their own consent would make online applications essentially impossible.

Also, technically if you don't extend credit, it doesn't matter. Reg B says you can't "require the signature of an applicant's spouse or other person, other than a joint applicant, on any credit instrument..." If you don't have a note, you don't have to worry about it. You DO need to have joint intent at time of application, so from a control standpoint you need to have joint intent from all applicants, but it's only a violation if you have a note.

If I phone in an app, you have no idea if it is my spouse who acknowledges joint intent or not. The auditor is reading into the requirements. The question needs to be asked and answered correctly. There is no CIP involved. And evidence of a signature on a closed loan is not confirmation of joint intent. "Forcing" a spousal signature at closing is how we got the interpretation we have to follow now. Getting a clear understanding at application is the intent. It's best if all parties consent, but you can't be sure in many cases you just follow reasonable procedures.

We are getting ready to go more electronic with our loan applications. If we have someone apply online, the system asks the joint intent question so I know we are covered there. If someone calls in or comes in face to face and talks to an LO, the LO is filling out the application info then passing that along to the processor to generate the actual application and disclosures which would either be mailed or emailed, depending on the borrower preference. In this instance, the application will not be printed at the same time as the borrower is there so what is acceptable to prove joint intent? If the app is generated on 8/8 but it is dated 8/7 (because that is the day the LO talked to the borrower) is it acceptable to only have the signature and joint intent indicated on the app or do we need to have something else actually at the time of application. Maybe I'm way overthinking this...