Become a compliance machine today
Have you ever seen the movie “Over the Top” starring Sylvester Stallone? If you haven’t, I suggest you look up this nostalgic 80s film about the world of professional arm wrestling. Stallone plays a father trying to get his son back and win the world arm wrestling championship. Stallone’s character “Lincoln Hawk” provides us with a glimpse of strategy over muscle to defeat the antagonist, “Bull Harley.” Why exactly am I telling you about an 80’s arm wrestling, action flick? Well it hit me, while trying to think of a blog idea, that as compliance professionals, we wrestle with compliance issues every day. Some of them can be simple, but most are unique and complex.
Recently, we received a question about whether signatures were required, by regulation, on mortgage applications. The simple answer is “no.” There is no federal regulation that requires the member’s signature on the application. However, unfortunately it is not that simple and further requirements may apply. For example, if the application has joint borrowers, you must note the borrowers’ joint intent per Regulation B. Per the Commentary in Regulation B, Section 1002.7(d):
A person’s intent to be a joint applicant must be evidenced at the time of application. Signatures on a promissory note may not be used to show intent to apply for joint credit. On the other hand, signatures or initials on a credit application affirming applicants’ intent to apply for joint credit may be used to establish intent to apply for joint credit.
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