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#2067682 - 03/04/16 08:42 PM Co-signer Listed on LE?
Luv2run Offline
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Joined: Jan 2015
Posts: 610
So is a co-signer considered an "applicant" for TRID? The reg state that any consumer making application for credit is to be listed on the LE. So, I am thinking a co-signer is making application in that we are reviewing his credit and income for qualification purposes....am I right in my way of thinking?
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TRID - TILA/RESPA Integrated Disclosures Rule
#2067721 - 03/04/16 10:42 PM Re: Co-signer Listed on LE? Luv2run
Kat Offline
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Joined: Apr 2014
Posts: 41
Montana
In my opinion you don't have to provide an LE to a co-signer as long as the co-signer's name is not on the LE. Here is why:

According to 1026.37(a)(5) Commentary 1. If there is more than one consumer applying for the credit disclosure of the name and the mailing address of each consumer to whom the Loan Estimate will be delivered.

According to 1026.17(d) Commentary 2. When two consumers are joint obligors with primary liability on an obligation, the disclosures may be given to either one of them. If one consumer is merely a surety or guarantor, the disclosures must be given to the principal debtor.

Hope that help.

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#2067756 - 03/07/16 02:13 PM Re: Co-signer Listed on LE? Luv2run
John Burnett Offline
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John Burnett
Joined: Oct 2000
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Cape Cod
The regulatory language at 1026.37(a)(5) says "(5) Applicants. The name and mailing address of the consumer(s) applying for the credit, labeled 'Applicants.' "

Then Comment 37(a)(5)-1 confuses matters somewhat: "1. Multiple consumers. If there is more than one consumer applying for the credit, § 1026.37(a)(5) requires disclosure of the name and the mailing address of each consumer to whom the Loan Estimate will be delivered. If the names and mailing addresses of all consumers applying for the credit do not fit in the space allocated on the Loan Estimate, an additional page with that information may be appended to the end of the form. For additional information on permissible changes, see § 1026.37(o)(5) and its commentary."

In the regulation, we're told to list the name and mailing address of the consumer(s) applying for the loan. That suggests you list all applicants.

In the comment, the first sentence says you disclose the name and mailing address of each consumer to whom the Loan Estimate will be delivered. Since the Loan Estimate only needs to be provided to one consumer who will be primarily liable on the obligation, does that mean you need only list one applicant on the Loan Estimate? The second sentence flips back to the idea that you list all the applicants, by providing you the ability to include the "overflow" of the list on an additional page.

When the Commentary contradicts itself, I recommend taking the conservative route and listing all the applicants, even though you will only deliver the Loan Estimate to one of them.
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#2067780 - 03/07/16 03:05 PM Re: Co-signer Listed on LE? Luv2run
Luv2run Offline
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Joined: Jan 2015
Posts: 610
Thank you both for your response. I tend to be on the conservative side of things myself and will suggest we list all applicants and provide the LE to the primary.
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