Answer:
This is a debatable topic, but by definition for a joint applicant to meet the Reg B definition (OSC Section 202.7(d)(1)2-3) the term "joint applicant" refers to someone who applies contemporaneously with the applicant for shared or joint credit. This scenario doesn't have that (you've not denied the request, you've added a condition). The joint intent requirement must be evidenced at the time of application. Again, you don't really have that because your application is still pending and another obligor is presented and added to your original request. If you denied the prior application and the first person comes in with this other person and applies, you will likely have a joint application. That said, the safer route is to assume that under Reg B these additional obligors will be applicants and having a joint intent notice doesn't hurt, even if it is not required. Reg B doesn't define the cosigner or guarantor. You will find "cosigner" in Reg AA, Section 227.12(b). They don't receive benefit of the loan.
"a natural person who assumes liability for the obligation of a consumer without receiving goods, services, or money in return for the obligation, or, in the case of an open-end credit obligation, without receiving the contractual right to obtain extensions of credit under the account. (2) "Cosigner" includes any person whose signature is requested as a condition to granting credit to a consumer, or as a condition for forbearance on collection of a consumer's obligation that is in default. The term does not include a spouse whose signature is required on a credit obligation to perfect a security interest pursuant to state law."
It is my experience that a commonly-accepted definition of a guarantor means that they are not asked to pay the debt until you are not able to collect from the obligors listed above them.
First published on BankersOnline.com 10/02/06
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