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Reg B and Signatures of Borrowers

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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.

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 12/13/10

First published on 12/13/2010

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