Q: When do co-applicants have to indicate that they intend to be jointly liable?
A: Regulation B requires co-applicants to indicate that they intend to be jointly liable at the time of application. For in-person applications, the co-applicants should sign or initial a statement of joint intent that follows the language in Regulation B. A loan officer may obtain confirmation orally in a telephone application. The bank may have a statement of joint intent signed later if it was unable to obtain a signed notice at the time of application, such as in a telephone application. However, the financial institution should document that the original intent of the borrowers to be jointly liable was provided at the time of application.
Article ID: 159, Created: September 28, 2010 at 1:31 PM, Modified: October 25, 2016 at 2:42 PM