Husband Co-Signer b/c Not List as a Borrower?

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Question:

Notice to co-signer? If the debtor is the wife and the creditor is the financial co. does this mean the husband signs as the co-signer, because his name is not listed as a borrower?

Answer:

Has the husband agreed to apply jointly with the wife? You can't require the husband to assume liability [Section 202.7(d)]. You can require the husband to sign security documents so you can perfect, but that's it. If the husband agreed to cosign the loan, then you should provide a Notice to Cosigner disclosure to the husband.

First published on BankersOnline.com 12/5/11