I agree with Randy. Generally speaking, when I read "spouse" I read "co-borrower".

Here is one point I'll make in Thursday's Reg. B webinar, "Marital status means the state of being unmarried, married, or separated, as defined by applicable state law." This promises to get more confusing than less in the future.

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This promises to get more confusing than less in the future.

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Thanks for giving us something to look forward to!!!!!

OK, one more question and I promise to try and not ask any more.... at least today! Is the intent required for guarantors on loans as well? Say the loan is to XYZ Inc. and John Doe and John Brown guarantee it.

FED-REGS, BANK-COMPLIANCE, 12 CFR Supplement I to Part 202 —Official Staff Interpretations
The term “joint applicant” refers to someone who applies contemporaneously with the applicant for shared or joint credit. It does not refer to someone whose signature is required by the creditor as a condition for granting the credit requested.

However, a guarantee on an extension of credit is part of a credit transaction and therefore subject to the regulation. Since it is spousal guarantees that got us into this mess to begin with, I recommend that you get a statement of intent to guarantee, unless the spouse is a partner, director, or officer of a business, or a shareholder of a closely held corporation.

( ) I am applying for individual credit and I am relying on my income or assets, as well as income or assets from other sources.

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Sorry, I can't get this through my head, would this choice be used when you have a guarantor on the note?

Several months ago when all this started, the then CFO and I developed a "Commercial Loan Info Sheet" to be used for Reg B Purposes. I have just modified it to contain "intent". It is a VERY simple form in Excel format and I have not had one commercial loan officer complain about completing it!!!

If anyone who is not using anything, that wants something simple, that includes intent, pm me with your email address and I will send you a copy.

I believe the "intent" issue does apply to guarantors. The definition of an "Applicant" means "any person who requests or who has received an extension of credit from a creditor, and includes any person who is or may become contractually liable regarding an extension of credit. For purposes of 202.7(d) (signature rules), the term guarantors , sureties, endorsers, and similar parties." 202.2(e)

The new Fannie Mae/Freddie Mac mortgage application form was adopted as a model in September 2003. That is after the changes to Reg B, but BEFORE the mandatory compliance date. The language in the reg indicates that the affirmation of joint credit must be distinct and not one that affirms the accuracy of the financial information. Obviously intended to address commercial loans, but without some additional language exempting consumer loans, then my take on it is that the language above the applicant's signatures on the application form would have to affirm the validity of the information (financial) but also that the intent is to apply jointly.

The new application also doesn't contain a section authorizing the creditor to pull a credit report. I believe an additional form must now be created to obtain that authorization. Your thoughts?

We use an Authorization to Obtain Information form that covers credit, employment, bank accounts, etc.

Just above the signature lines we have added in bold all cap letters.

ALL PARTIES SIGNING THIS AUTHORIZATION ARE AFFIRMING THEIR INTENT TO APPLY FOR JOINT CREDIT. A SINGLE SIGNATURE IMPLIES INTENT FOR INDIVIDUAL CREDIT.

If you look in the General Discussion forum, under Reg B Changes, you'll see where Andy Z is holding a webinar today at which he intends to discuss 1) the model application form will be changed (it's not in compliance) 2) a separate form will have to be used to get the intent until the form is in compliance.