Our loan applications are computer generated. The application defaults to unmarried and the lender has to check the married box if applicable. For some reason, the system will allow more than one box to be marked. In my latest loan review I have come across about 10 loans where both boxes are marked. Do I have an issue? We are in a community property state and there is a separate area at the end of the application where the joint intent signature is obtained.

At the very least I would contact your vendor ASAP. How would you know in the future what the right answer is? In addition on the ones you find I would correct the error and have the applicant initial the change. Just to keep the files clean, but that is just MHO.

I agree - contact your vendor ASAP. This is a built in fair lending violation. First, the software should never have been installed with a default selection for marital status. A pre-acceptance compliance review should have detected this. Second, the software should not allow for multiple selections for this field. Third, I would strongly suggest that the completion of the field be left optional. Fourth, I believe you have a problem under 202.5(d)(1) if there is not also an option for "separated" along with married and unmarried. Fifth, you mention you are in a community property state. Do you ever receive loan applications from applicants who reside in a different state that is not a community property state? If so, collecting this information at all on an individual unsecured loan application from one of those applicants living in a non-community property state would be a violation of 202.5(d)(1).