Would someone please explain what the difference is between a loan co-signer and a loan guarantor. I know a co-signer has to be given a "Notice to Co-signer" Disclosure, whereas it is my understanding that no such Disclosure is required for a guarantor,but is there any other difference?

There is no real difference if you are referring to a consumer transaction. A co-signer and guarantee are really one and the same. A guarantor on a consumer loan is entitled to a "notice to co-signer" if the loan meets the conditions. On a commercial loan, a co-signer usually signs the note, instead of a guarantee, and the banks usually pursues direct signers prior to calling on the guarantors, but not always.

We just had the same discussions in my bank to be sure we were not confusing applicants now that we need to gather their intent at time of application. Basically htere is not clear definition of a co-signer and state law comes into play as well. And the bank does not want to be in the position of determining if the second party had benefit of the collateral or funds. So for us, we don't allow personal gurantors, everyone is an applicant and everyone signs the Note. But we also supply the co-signer notice just to help out on the legal side when we need to pursue for nonpayment. All bases are covered.