The intent of applicants to apply for credit jointly is often something that lenders assume or take for granted. In the case of joint intent, even seemingly innocent assumptions can get your bank in hot water.
Erroneous assumptions regarding joint intent can lead to claims of illegal discrimination under the Equal Credit Opportunity Act (Regulation B) and fair lending. Your lenders must make an actual determination that intent to apply jointly exists and then must properly document that joint intent. One huge issue with Joint Intent requirements are that there is very little to the rule. That may be a blessing and a curse. The best way to comply with this rule is to understand the spirit and intent, so that, plus the small amount of a rule and guidance that we do have, will keep your bank out of that hot water. Join Andy Zavoina to learn the who, what, when, where and how of documenting an applicant's intent to be a joint applicant.
You will also learn what is an application, who is an applicant, what documents are necessary for the application process and when you can and cannot require someone to sign a loan contract according to regulatory requirements.
Regulation B requires that you affirmatively document an applicant's intent to apply for joint credit.