Joint applicant added later

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Question:

Wife applies for an auto loan by herself and is approved. Subsequent to signing the loan agreement, the husband wants to be added to the loan as a co-borrower in order to get on the title of the vehicle. No new application is taken and the creditworthiness of the husband is not verified. Is there a joint intent issue here?

Answer:

This is a perfect example of the “contemporaneously applying” exemption. In this case, the husband did not apply contemporaneously with the wife and therefore joint intent does not apply. I would be sure to document that the husband was added at a later time. Note that the husband would not have to be on the loan to be on the title; he could have simply signed the security agreement.
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