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Joint Intent Required at Application?

Is joint intent required at application or at a completed application status? The question arose, because if joint intent is not established at application, can any change prior to a completed application status be considered contemporaneous?

by Randy Carey:

If you mean can circumstances change in which someone becomes a joint applicant sometime between the original application date and the date of the loan. Sure. It would still have to be evidenced at the time that the additional party gave the creditor their application to become involved in the transaction.

Official Interpretation

Paragraph 1002.7(d)(1).

3. Evidence of joint application. A person's intent to be a joint applicant must be evidenced at the time of application.


by David Dickinson:

The Commentary to §1002.7(d)(1) #2 states:

Joint applicant. The term “joint applicant” refers to someone who applies contemporaneously with the applicant for shared or joint credit. It does not refer to someone whose signature is required by the creditor as a condition for granting the credit requested.

Therefore, if someone is added to an application later, you technically don't have to get documentation of their intent to apply for joint credit. The problem with this is proving when they were added. It's always a best practice to get joint intent documentation no matter when applicants are added, however.

Back to your original question: As Randy pointed out, the regulation states the evidence of joint applicants is required "at the time of application." The regulation doesn't say "initial" or "complete" application. The section-by-section analysis issued with this final rule made it clear that the regulators expected loan officers to document this evidence when the application was initiated, but it never clearly stated this. I always train that loan officers should ask "who's going to be on this loan" at the very beginning of the application process.

First published on 10/11/2015

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