I've posted this in the Wisconsin forum but I thought I'd try here to see if anyon has any help or opinions on this, particularly those of you in marital property states.

MARRIED BORROWER APPLYING AS AN INDIVIDUAL

WHEDA requires that a joint tri-merged credit report be included in the credit underwriting package. The non-applicant spouse would be required to sign the Mortgage at closing but could not take title. WHEDA is the Wisconsin Housing and Economic Development Authority

This just screams out at me on two counts:
1) How can they require a joint credit on a individual borrower?
2) How can they dictate who will and will not be on title?

All your thoughts/comments are appreciated by this one person compliance dept.

I'll go out on a limb here and brainstorm a little. Wisconsin is a community property state. I would imagine this has something to do with the title and the requirement that the spouse sign the mortgage. And it seems to me as though the rules are also different in community property states when applying for a secured loan, in terms of whose signatures you can require.

That's as far as I can go with this.

Thanks for the brainstorming. It's exactly what I need.

After more years of WI experience than I'll admit to, I have never heard of saying who can or cannot be on title based on who's giving the mortgage. If I qualify on my own, I can get a mortgage and my spouse must sign the collateral document (mortgage) whether he's on title or not.

I'm more interested in your take on the joint credit bureau aspect of this. If we can't pull a joint cbr without written consent, does WHEDA (or anyone else for that matter) have a leg to stand on in REQUIRING a joint cbr when only one spouse is the borrower?

Sorry, since NY is not a community property state, I'd be in new territory and don't want to offer any further comments. Hopefully someone else will step forward.

In all my years in the business I have never had to deal with a community property state, so I can not be of much help there but my 2 cents worth.

1. This is permissible (joint credit reports) in community property states. 202.5(c)(2)(iv). Circumstances that allow requiring the spouse's signature on the note is in 202.7(d)(5) and its Commentary.

2. As for as how title is taken to the property is not, IMO, a matter that can be dictated. But again I am not familiar with all the intricacies of community property states.

(I know I already addressed this in a PM, but maybe this will help get further discussions going.)

Thanks to you both. I appreciate the cite for the joint cbr, Dan.

NB: Obviously, I'm going to have to get more practice on searching Regs for specific information. Unless, of course, you've just got them all memorized, Dan!