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Son of HELOC Account Holder is Authorized Signer

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The only account holder and owner of a primary residence has authorized her son to sign on the account. There is note from our borrower, but no formal document. Is this a violation and are there any restrictions because is a primary residence?

Any restrictions on withdrawals would be governed under state law. I personally would not rely on a note from the customer. When the son abuses the account and you go to court for foreclosure, I would not want to be standing in front of a judge with a napkin in my hand. If she wants her son to have access to the account she should execute an appropriate power of attorney.

First published on 2/02/09

First published on 02/02/2009

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