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#2265426 - 01/28/22 05:53 PM Adding co-borrower
ADN Offline
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Joined: Mar 2007
Posts: 205
In the consumer mortgage industry - what are the implications of adding an additional applicant after initial disclosures have been delivered? Do many allow this or do you make applicants submit a new application?

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Lending Compliance
#2265427 - 01/28/22 05:57 PM Re: Adding co-borrower ADN
raitchjay Online
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Joined: Oct 2009
Posts: 8,835
OK
It doesn't often happen, but if it's at the applicant(s)' request, i have no issue with it. The LE need only be delivered to the primary applicant anyway, so i see no implications from a TRID perspective. We would just have them amend their existing application, document the file, and proceed on.
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#2265723 - 02/03/22 04:09 PM Re: Adding co-borrower ADN
Compliance NABW Offline
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It's pretty common for those selling in the secondary market. Some investors may want it done as a new application. It will often depend on whether the new applicant is needed to support the credit approval. If they are, then basically you have a denial and a counteroffer. These will more often be done as a new application. If the new applicant is added "just because," then it is often accepted to proceed with the initial application.

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#2265724 - 02/03/22 04:10 PM Re: Adding co-borrower ADN
Compliance NABW Offline
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It's pretty common to allow it*

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#2265739 - 02/03/22 04:58 PM Re: Adding co-borrower ADN
raitchjay Online
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Joined: Oct 2009
Posts: 8,835
OK
Yes, i probably should have considered the secondary market in my answer, but since that's not my current world, my answer was from a bank that keeps loans in portfolio.
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