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#967345 - 06/02/08 12:55 PM Co-signer notice - seperate document?
AuditorK Offline
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PA
From what I've read, it doesn't appear that we need to give out the co-signer notice (Reg AA) as a seperate document. We currently have the notice included in our consumer note (right above the signature lines). I do know some institutions also give out a seperate document, but I think this is just their procedure, not a requirement. Can I get a yea or nay?

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#967385 - 06/02/08 01:33 PM Re: Co-signer notice - seperate document? AuditorK
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I believe some states require that this is given as a separate document so be sure to check state law.
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#967410 - 06/02/08 02:02 PM Re: Co-signer notice - seperate document? Cowboys Fan
Tom at HOME Offline
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The notice is also required for guarantors and they don't sign the note. Do you put the notice in the guarantee agreement on do you give them a separate notice? Maybe that is why some lenders always give a separate notice. That way they don't have to ask the question, they just do it.

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#967487 - 06/02/08 03:26 PM Re: Co-signer notice - seperate document? Tom at HOME
Bullseye Offline
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Cowboys Fan is right - in our state, state law says it must be on a separate form.

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#967968 - 06/03/08 01:51 PM Re: Co-signer notice - seperate document? Bullseye
swiggles Offline
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Originally Posted By: Bullseye
Cowboys Fan is right - in our state, state law says it must be on a separate form.


What state??....I'm curious.

Our doc prep software, Laserpro, includes the notice BELOW the signature lines on both the promissory note (for cosigners) and on the guaranty agreement (for guarantors). I also developed a separate form for the rare event of attorney-prepared loan documents (which typically do not include the notice).
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#967996 - 06/03/08 02:13 PM Re: Co-signer notice - separate document? swiggles
Dan Persfull Offline
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Bloomington, IN
Quote:
Our doc prep software, Laserpro, includes the notice BELOW the signature lines on both the promissory note (for cosigners) and on the guaranty agreement (for guarantors).


The notice must be given before they become obligated on the transaction. Giving the notice after they sign is too late.

Our software, Rembrandt and ARTA, puts the notice before the signature line.
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#968061 - 06/03/08 02:57 PM Re: Co-signer notice - separate document? Dan Persfull
swiggles Offline
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Originally Posted By: Dan Persfull
Quote:
Our doc prep software, Laserpro, includes the notice BELOW the signature lines on both the promissory note (for cosigners) and on the guaranty agreement (for guarantors).


The notice must be given before they become obligated on the transaction. Giving the notice after they sign is too late.

Our software, Rembrandt and ARTA, puts the notice before the signature line.


Yes, I've heard that argument before. And the fact that LaserPro puts the notice below the signature line has always been disturbing to me. But it's so close to the signature line that really, it can't be missed. Just FYI, we just made it through a compliance exam. This exam, the examiners really centered in on Reg AA cosigner notices and reviewed a pretty large sample. They centered in on several loans where the customers were listed as borrowers but according to the loan purpose, it appeared as though one should have been a cosigner. Anyway....that's how intricate their review was. But they had no comment regarding the placement of the notice.
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#968241 - 06/03/08 04:38 PM Re: Co-signer notice - separate document? swiggles
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South Carolina requires a separate written notice (37-3-303) which Laser Pro does provide.
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#968277 - 06/03/08 05:13 PM Re: Co-signer notice - separate document? Cowboys Fan
swiggles Offline
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I can see the writing on the wall. If our notice was separate, we'd have a problem with failure to provide it and/or failure to provide it prior to a person becoming obligated. And you know how crafty lenders are in their attempts at a cover up.

Just on a side note, I know that the regulation states that if a person meets the description of co-signer, that person IS a co-signer regardless of what is indicated on the loan papers. My examiners agreed with that by saying that as far as they're concerned, a co-signer could be set up as a co-borrower as long as a co-signer notice is provided. I was little bit surprised.
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