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Posted by Bear900/CA on 9/24/21 2:27pm
"then why do they just list one of the borrowers on each of those pages?"
Perhaps the best statement/question on this post, and also perhaps the key to what's going on IMO.
This will go nowhere with most NSA's but if that question lingers in your mind the answer starts with ECOA, the Equal Credit Opportunity Act.
LO's have been 'required' for some years now to ask up-front, before taking an app, if the customer is applying for joint or single credit. Honestly, I don't know where this ever happens. So immediately, ECOA laws are broken. So let's keep everyone honest and put the question right on the app, at the very beginning, and have the customers acknowledge it with their initials. To me, that question is isolated from the rest of the concerns on the app, so why not have both parties initial one spot? But there's two apps right? Here's where the hand is quicker than the eye...
If you really want to get into it, start comparing some joint credit apps and look at the assets and credit sections. Are they different or the same? Ahaa....
If they choose to use the same assets and credit, those only need to be input on the *first borrower's app*, not repeated on the 2nd app. Though redundant, the 2nd app remains separate for ECOA and other purposes, but the information does not have to be repeated. This sort of app, can also be a 'run-on app' with continuous pages. I believe both signatures on this sort of app cab be in the same place, so why not initials too. I'm not certain. Just thinking out loud.
When an additional borrower lists different assets and credit, you have another whole story, and another whole app. In fact, it's called an 'additional borrower app'. Probably can't combine initials in that case, IMO.
So who cares? I do, and obviously you are curious enough too. The mystery of 'dual' joint credit initials may fall somewhere between all of that if it's indeed a new reality. |
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