We are starting to test denied loans for joint intent. On a prequalification denied I know an adverse action notice is required since this rises to the level of an application. But does the joint intent requirement apply since this really wasn't an application?

Joint intent is part of Regulation B and it was, as you said, an application under Regulation B. How could you possibly evaluate a pre-qual request if you did not know who was intending to apply?

I'm not sure. A prequalification only becomes an application once it is denied, and joint intent is only required in order to have someone sign a credit instrument, so I don't think it is required to be evidenced for a prequalification that only becomes an application when it is denied. A pre-approval would require joint intent, but I don't think it would be required for a denied inquiry/prequal.

Reasonable question - I was looking at it more narrowly in that it did not become an application until we said we wouldn't provide credit and are now required to provide an adverse action notice. There is not always a completed application taken in the case of a prequalification, sometimes we have authorization to pull credit (which may be verbal) and we were thinking we could use that as joint intent to affirmatively document the intent to apply jointly, but was wondering if it was applicable since a prequalification isn't considered an application under the regulation.