Are we required to accept income from a non-borrowing, working spouse when a non-working spouse applies for a loan?

Example: Wife works, makes $50k a year. Funds go to a joint account with husband. Husband wants a credit card, but has no income. He states that he has access to his wife's $50k a year. I know that Reg Z allows us to do this, but I don't see that it compels us to do that.

Are we violating any fair lending concerns if we do NOT consider income from a non-borrowing, working spouse? If we require them to be a co-signer, is that an issue?

(ii) Reasonable policies and procedures. Card issuers must establish and maintain reasonable written policies and procedures to consider the consumer's ability to make the required minimum payments under the terms of the account based on a consumer's income or assets and a consumer's current obligations.

What does your policies & procedures require you to do in these situations? Reg. Z does not compel you to consider the other income but your policy should outline the procedure so that all such applicants are processed the same.

If the applicant is relying on another parties income or assets then under Reg. B you are allowed to require them to sign the necessary legal documents to make that income and/or assets available to the FI if necessary.

If you are in a community property state, it is likely that your lending policy addresses this.

And even if you're not in a community property state, your lending policy should address acceptable income.

And you must be consistant!
Example, if a director's, or officer's non-working spouse applies for a card you have to handle it the same way.