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#262066 - 01/26/06 02:20 PM
Re: HMDA and Co-Signers and/or Guarantors
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100 Club
Joined: Nov 2005
Posts: 224
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Keep in mind that HMDA is interested in who is borrowing the funds and how they will be used, not who is repaying the debt.
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#262068 - 01/27/06 03:01 PM
Re: HMDA and Co-Signers and/or Guarantors
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100 Club
Joined: Nov 2005
Posts: 224
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David, when you are talking about co-applicants and co-signers breaking down "borrowers from repayers" does make sense (co-applicant/borrower; co-signer/possible repayer). You can't convince me that co-signers are the same as co-applicants for HMDA purposes. They aren't.
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#262070 - 01/27/06 04:12 PM
Re: HMDA and Co-Signers and/or Guarantors
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100 Club
Joined: Nov 2005
Posts: 224
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Dan, are you saying that using a co-signers income in making the credit decision makes them an applicant?
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#262073 - 01/27/06 07:30 PM
Re: HMDA and Co-Signers and/or Guarantors
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Platinum Poster
Joined: Apr 2003
Posts: 933
New York State
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Quote:
Quote:
You can't convince me that co-signers are the same as co-applicants for HMDA purposes. They aren't.
Then explain why HMDA specifically requires you to report the income of a co-singer if used, and specifically requires you not to report a guarantor's income if used.
Dan, I too find it interesting that with regards to income, HMDA states to report that of the co-signer, if used. And yet, co-signers are never similarly mentioned in the definitions for applicant or co-applicant.
There certainly is a lot of discussion and varied opinions with regards to this topic.
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#262074 - 01/29/06 12:50 AM
Re: HMDA and Co-Signers and/or Guarantors
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10K Club
Joined: Nov 2000
Posts: 18,763
Central City, NE
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Quote:
I can't speak for Dan, but my feeling has always been that if they're signing the note, they're an applicant.
Exactly! How can you not be applying if you are signing?
Now, I'm the first to say that you can't take one regulation to define another, but look at the definition of "applicant" in Reg B [202.2(e):
Applicant means any person who requests or who has received an extension of credit from a creditor, and includes any person who is or may become contractually liable regarding an extension of credit. For purposes of ยง202.7(d), the term includes guarantors, sureties, endorsers, and similar parties.
So, Poppy: Reg B defines a co-signer as an applicant. Don't you think Reg C could view them similarly?
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#262075 - 01/30/06 02:07 PM
Re: HMDA and Co-Signers and/or Guarantors
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10K Club
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
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And yet, co-signers are never similarly mentioned in the definitions for applicant or co-applicant.
Reg. C, or the GIR does not define the terms applicant, co-applicant or co-signer.
Quote:
I too find it interesting that with regards to income, HMDA states to report that of the co-signer, if used.
Co-signers are directly liable on the debt via their signature on the note, therefore it's apparent that Reg. C considers co-signers to be borrowers; and the Reg. requires you to collect information on the applicants and/or borrowers.
203.4(a)
(10) The ethnicity, race, and sex of the applicant or borrower, and the gross annual income relied on in processing the application.
From page 1 of the GIR:
. . . .including several applicant/borrower characteristics. . . .
From page 7 of the GIR:
. . . . Information about each application or loan, and about each applicant or borrower, is reported on a loan-by-loan, application-by-application basis on a loan/application register (LAR, or register). . . .
Do I need to go on?
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
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#262076 - 01/30/06 07:17 PM
Re: HMDA and Co-Signers and/or Guarantors
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Platinum Poster
Joined: Apr 2003
Posts: 933
New York State
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No, I don't think you need to "go on". In fact, I'll repeat my last comment. "There certainly is a lot of discussion and varied opinions with regards to this topic." Let's drop it, as it appears that it is becoming antagonistic.
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#262078 - 01/30/06 09:05 PM
Re: HMDA and Co-Signers and/or Guarantors
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Platinum Poster
Joined: Apr 2003
Posts: 933
New York State
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Quote:
Quote:
as it appears that it is becoming antagonistic.
That was not my intent, and if that's how it came across I apologize.
Thanks, I was probably a little sensitive. This has been quite a debate. And to think we get paid to ponder these things.
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