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#893910 - 01/25/08 06:18 PM Cosigner Notice Question
complygirl Offline
Platinum Poster
Joined: Oct 2004
Posts: 822
midwest
Bank originated a loan in 2007 with a cosigner, but failed to disclose the required cosigner disclosure notice. This was just recently discovered...what should be done at this point, anything?

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Lending Compliance
#893914 - 01/25/08 06:25 PM Re: Cosigner Notice Question complygirl
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,642
Bloomington, IN
No. The co-signer notice is required to be given before the co-signer becomes obligated on the debt therefore providing it now will serve no purpose nor cure any violation.

If the loan should go delinquent and end up in court chances are your co-signer could be relieved of their contractual liability.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#896214 - 01/30/08 04:34 PM Re: Cosigner Notice Question Dan Persfull
LinMarie Offline
100 Club
LinMarie
Joined: Nov 2001
Posts: 243
What federal reg states the notice is necessary? One of our lenders is trying to tell me we are not required to have this indirect loans. A bit of a difference in opinion. I need to go back with evidence.

Thanks

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#896245 - 01/30/08 04:52 PM Re: Cosigner Notice Question LinMarie
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,642
Bloomington, IN
Reg. AA
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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