[Sandy]

We have a consumer home loan that we are refinancing their principal dwelling. We have collected the government monitoring information on the borrower. There is a co-signer on the loan. We are not a HMDA reporting bank. Are we to collect the government monitoring information on the co-signer as well?

[jholzknecht]

Regulation B requires the collection of government monitoring information for each applicant.

[Sandy]

Just to confirm for TRID home loans is a co-signer considered an applicant and yes we would collect government monitoring? We were thinking a co-signer was not an applicant.

[jholzknecht]

Section 1002.2(e) of Regulation B, the regulation that requires the collection of government monitoring information, defines the term applicant to mean, “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 §1002.7(d), the term includes guarantors, sureties, endorsers, and similar parties.

TRID is part of Regulation Z. Section 1026.2(a)(11) of Regulation Z uses the term consumer, rather than the term applicant. The term consumer means a cardholder or natural person to whom consumer credit is offered or extended. Comment 2(a)(11) clarifies, “Guarantors, endorsers, and sureties are not generally consumers for purposes of the regulation, but they may be entitled to rescind under certain circumstances, and they may have certain rights if they are obligated on credit card plans.”

To conclude Regulation B states that the term applicant does not include a cosigner unless the cosigner is an applicant. TRID has nothing to do with the collection of monitoring information.

[Author]

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