Answer:
The answer to this question requires consideration of both ECOA and FCRA, and depends on how the counter offer was communicated to the borrower and co-borrower.
If the counter offer was communicated in writing as a joint AAN and counteroffer and was provided to the borrower because they were the "readily apparent primary applicant" (1002.9(f)) you would not need to send a second AAN to the borrower (Commentary to 1002.9(s)(1)-6.)
If; however, the counter offer was communicated verbally (or in writing without an AAN for the original terms requested), the borrower that did not accept the counter offer should be provided an AAA under ECOA.
Don't forget that the ANN to the borrower should also comply with the requirements of FCRA if the basis for the counter offer was based in whole or in part on information contained in a consumer report. Also, be mindful of the deadlines to provide the notices - 30 days to decision under ECOA and 90 days after notification of the counter offer if the counter offer is not accepted.
First published on BankersOnline.com 5/13/13
print
share