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Reg B and Signatures of Borrowers

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Question: 
Reg. B includes signatures or inititals of borrowers regarding joint intent. Is it necessary to have the borrowers sign/initial again when extending or modifying the original terms of the note? I am assuming no, since it is required at application, which has already been satsified.
Answer: 

Technically, all applications for credit which involve more than one borrower require "joint intent" compliance. Anytime you do something beyond what was originally applied for, I believe you are taking a new application.

If you had a one year, single pay note and extended it for another year, I would argue that you really are doing a new note (not trying to get legal) and you really have a new request for credit (do it again); therefore, joint intent is triggered. If you had a borrower who couldn't make his payment this month and you extended the loan for one more month, I wouldn't worry about joint intent.

First published on BankersOnline.com 12/13/10

First published on 12/13/2010

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