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#966416 - 05/29/08 07:38 PM Evidence of joint application” & Oral App
Anonymous
Unregistered

I am trying to determine how a bank would handle oral loan applications in relation to “Evidence of joint application” requirements.

Can anyone shed some light on this for me?


202.7 staff interpretations
[Paragraph 7(d)(1)(3)]
3. Evidence of joint application. A person's intent to be a joint applicant must be evidenced at the time of application. Signatures on a promissory note may not be used to show intent to apply for joint credit. On the other hand, signatures or initials on a credit application affirming applicants' intent to apply for joint credit may be used to establish intent to apply for joint credit. (See Appendix B). The method used to establish intent must be distinct from the means used by individuals to affirm the accuracy of information. For example, signatures on a joint financial statement affirming the veracity of information are not sufficient to establish intent to apply for joint credit.

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Lending Compliance
#966631 - 05/30/08 12:36 PM Re: Evidence of joint application” & Oral App
Jerod Moyer Offline
Platinum Poster
Jerod Moyer
Joined: Oct 2005
Posts: 667
Sioux Falls, SD
For oral or telephone applications loan officers should document who they spoke with, when they spoke and thier intent to apply for credit. This must be done at the time of the oral or telephone application in order to meet the "at the time of application" requirement in the regulation. Obtaining signatures or intitials any time after the oral or telephone application was placed will not satisfy the regulatory requirements.

This topic will be discussed at length in David Dickinson's upcoming webinar Documenting an Applicant's Intent to be a Joint Applicant on June 18, 2008.
_________________________
Jerod Moyer
www.bankerscompliance.com

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#1007635 - 07/29/08 09:35 PM Re: Evidence of joint application” & Oral App Jerod Moyer
BlackHills Offline
Member
Joined: Nov 2007
Posts: 55
I was not able to attend Dave's webinar. Did he bring up telephone applications in which you only speak to one of the applicants, but it was noted by the primary applicant that it would be a joint application? And if so, is it OK to obtain the written intent from both at a later time?

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#1007659 - 07/29/08 10:22 PM Re: Evidence of joint application” & Oral App BlackHills
Ray_ Offline
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Joined: Aug 2006
Posts: 879
Dallas, TX

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#1007851 - 07/30/08 01:42 PM Re: Evidence of joint application” & Oral App Ray_
BlackHills Offline
Member
Joined: Nov 2007
Posts: 55
Since it does not specifically say "all applicants must come on line (when it is a telephone application)to tell you it is a joint application", I will take that as OK then for the primary applicant to indicate this and then at closing both will validate by initials/signing that it is a joint application.

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