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#27744 - 08/13/02 06:26 PM Marital Status

How important is it to have the marital status on a secured loan? It seems to be one of those areas people don't complete.

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Lending Compliance
#27745 - 08/13/02 07:25 PM Re: Marital Status
E.E.G.B Offline
Power Poster
Joined: Jul 2002
Posts: 6,726
the sandy shore
Ummmm, well it's one of the areas sort of REQUIRED by regulation, at least if it's for the purchase/refi of and secured by principal residence .... So pretty important in that case!
I disbelieved what he was saying so hard, I probably created an alternate universe where it wasn't true.

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#27746 - 08/13/02 08:09 PM Re: Marital Status
Andy_Z Offline
10K Club
Joined: Oct 2000
Posts: 27,590
On the Net
It is a good idea to know that someone else has rights to what may be your collateral and to other assets that could be liquidated to pay your debt even if it is not your collateral.
My opinions are not necessarily my employers.
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#27747 - 08/13/02 08:09 PM Re: Marital Status
JulieB Offline
Junior Member
Joined: Apr 2002
Posts: 38
Our consumer loan applications also have a section for marital status. It is my understanding that the purpose of the question is to determine the possibility of third party ownership interests in assets, especially in community property states. Since I am not located in a community property state, I don't require that the question be answered.

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#27748 - 08/14/02 12:29 PM Re: Marital Status

We aren't in a community property state and that was why I wasn't sure how important that question was. If we don't know the customers they will usually ask but they don't fill that in consistenly.

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#27749 - 08/14/02 01:05 PM Re: Marital Status
BankerMama Offline
Diamond Poster
Joined: Jun 2001
Posts: 1,543
Interested to know how some of you handle this case...
A customer completes a credit application for unsecured, single credit. Can't ask the maritial status......but applicant completes that part anyway. Now, I know the officer should have crossed out that section but everyone knows how hard it is to get a lender to do what they are suppose to do! All I know to do at that point is mark through the maritial status........what would you do?

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#27750 - 08/14/02 01:15 PM Re: Marital Status
Gotwood Offline
Platinum Poster
Joined: May 2001
Posts: 715
Actually, it is only required that you REQUEST the information from the applicant. While it is good practice to get the information, it is not a violation if you don't.

202.13(a) Information to be requested. A creditor that receives an application for credit primarily for the purchase or refinancing of a dwelling occupied or to be occupied by the applicant as a principal residence, where the extension of credit will be secured by the dwelling, shall request as part of the application the following information regarding the applicant(s):
(3) Marital status, using the categories married, unmarried, and separated

202.13(b) Obtaining of information. Questions regarding race or national origin, sex, marital status, and age may be listed, at the creditor's option, on the application form or on a separate form that refers to the application. The applicant(s) shall be asked but not required to supply the requested information. If the applicant(s) chooses not to provide the information or any part of it, that fact shall be noted on the form. The creditor shall then also note on the form, to the extent possible, the race or national origin and sex of the applicant(s) on the basis of visual observation or surname.

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#27751 - 08/15/02 11:16 AM Re: Marital Status
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,097
Toano, VA
You want the information because you need to know who else will have a claim on assets (via dower or courtesy) you're relying on for collection of your loan. If you see that the applicant's financial statement shows a net worth that is heavily concentrated in real estate and that the spouse is a joint owner, you may need to get a deed of trust to protect your position.
...gone fishing.

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