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#2232600 - 03/06/20 09:45 PM Lending to NRA
cried Offline
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Joined: Sep 2015
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Weird question. If our institution wanted to lend to a NRA on a piece of property in the US, keep in mind this person knows executive level officers. what, if any, other than ID, would be required? I have not had experience in this area. Should we also obtain a W8-BEN? appreciate any feedback you have.

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#2232604 - 03/06/20 10:45 PM Re: Lending to NRA [Re: cried]
Andy_Z Offline
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Do you want the W8-BEN for beneficial ownership? I don't know that it's needed otherwise. You aren't paying interest to the borrower.

As to "knowing executive level officers" I always remember one of my old bank presidents saying that if an applicant had to drop the presidents name, he probably didn't need that loan.

The question with the NRA is one of location and repayment. When people say they'll give collateral back to the bank, 99.9% didn't get it from the bank so they can't give it back. And bank's don't want the collateral, they want the P&I.

It's not an ECOA issue as you can consider how long the NRA will be in the US.
Last edited by Andy_Z; 03/06/20 10:52 PM.
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