Lender responsibility for indirect lending

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Question:

In an indirect lending scenario, does the financial institution have any responsibility to ensure that the indirect lender followed these procedures at the time that the indirect lender took the application?

Answer:

Yes. The creditor is ultimately responsible for compliance. This is the case for joint intent as well as many other compliance regulations (fair lending, denials, RESPA, etc.). You need to ensure your indirect lenders are following these requirements because it creates risk for the financial institution.
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Learn more about David Dickinson’s webinar
Documenting an Applicant’s Intent to be a Joint Applicant