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.