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#2252723 - 04/21/21 02:49 PM Reg B - Joint Intent
bhazzard Offline
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We are implementing a new online loan origination software. In viewing the demo's I am not seeing a checkbox anywhere or any other method to demonstrate joint intent. The business unit is asking if the final application that is sent to the customer via Docusign would suffice.

I am thinking that would not suffice as the rule indicates it must be documented at the time of the application.

The definitions define an application as "means an oral or written request for an extension of credit that is made in accordance with procedures used by a creditor for the type of credit requested. The term application does not include the use of an account or line of credit to obtain an amount of credit that is within a previously established credit limit. A completed application means an application in connection with which a creditor has received all the information that the creditor regularly obtains and considers in evaluating applications for the amount and type of credit requested (including, but not limited to, credit reports, any additional information requested from the applicant, and any approvals or reports by governmental agencies or other persons that are necessary to guarantee, insure, or provide security for the credit or collateral). The creditor shall exercise reasonable diligence in obtaining such information."

Since the online application meets the rules definition of application, is the document sent over via docusign later in the process too late to obtain joint intent?

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#2252726 - 04/21/21 03:14 PM Re: Reg B - Joint Intent bhazzard
Skittles Online
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Does your new software give the applicant a place to indicate that this will be a joint application - and then request information on the joint applicant?
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#2252728 - 04/21/21 03:34 PM Re: Reg B - Joint Intent bhazzard
bhazzard Offline
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Skittles - Yes it does. There are options for multiple borrowers.

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#2252739 - 04/21/21 04:59 PM Re: Reg B - Joint Intent bhazzard
Skittles Online
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Then, in my opinion, the applicant is informing the bank that the application is a 'joint' application and the intent is received. Intent doesn't have to a signed document.

I'm sure if others have differing opinions or don't agree with me then they will post shortly.
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#2252744 - 04/21/21 05:52 PM Re: Reg B - Joint Intent bhazzard
bhazzard Offline
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Skittles - My apologies I read your initial question wrong. It gives the option for multiple borrowers, but at this time there is no button to click for joint intent is just allows for multiple borrowers to apply at the same time.

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#2252746 - 04/21/21 05:57 PM Re: Reg B - Joint Intent bhazzard
Skittles Online
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I understand; however it gives the applicant the option to add additional applicants. In my mind that is verifying that they do intend to apply jointly.
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#2252753 - 04/21/21 06:24 PM Re: Reg B - Joint Intent Skittles
RR Sarah Offline
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3. Evidence of joint application. A person's intent to be a joint applicant must be evidenced at the time of application. Signatures on a promissory note may not be used to show intent to apply for joint credit. On the other hand, signatures or initials on a credit application affirming applicants' intent to apply for joint credit may be used to establish intent to apply for joint credit. (See appendix B.) The method used to establish intent must be distinct from the means used by individuals to affirm the accuracy of information. For example, signatures on a joint financial statement affirming the veracity of information are not sufficient to establish intent to apply for joint credit.

Look at the model forms in Appendix B of Reg B. I don't know that just submitting an application with multiple borrowers is enough to provide evidence of joint intent.

If I'm wrong, please tell me because it would make life so much easier!
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#2252756 - 04/21/21 06:35 PM Re: Reg B - Joint Intent bhazzard
Skittles Online
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My response was based only on these applications be online in nature. If I am providing information online - the applications I've seen asks specifically if there will be a joint applicant - and if you indicate there will be it will open up to obtain information on the joint applicant.
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#2252765 - 04/21/21 07:20 PM Re: Reg B - Joint Intent Skittles
RR Sarah Offline
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That makes sense.
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#2252766 - 04/21/21 07:42 PM Re: Reg B - Joint Intent bhazzard
bhazzard Offline
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Well it is sort of a mixed bag. They apply initially online then, get sent an electronic document to sign for the application. My question is should we have a check box during the electronic portion, or is the signed application (which has a separate section for joint intent) sufficient. My concern is that if we use the signed application we are technically receiving the intent after the application is received (based on the Reg B definition of an application).

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#2252775 - 04/21/21 10:58 PM Re: Reg B - Joint Intent bhazzard
M Cockrell Offline
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#2252785 - 04/22/21 01:29 PM Re: Reg B - Joint Intent bhazzard
bhazzard Offline
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Thank you M Cockrell: I tried to search and came up with a few posts but those did not come up. Those helped a lot!

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