Residential Lending Policy – Changes to Co-Borrower

May 13th, 2020

Changes to Co-Borrower
To date, policy has required that spousal applicants be included on a loan as a guarantor, rather than a co-borrower. This approach was taken because a guarantee provides additional protections to the guarantor. As you’re aware, as a borrower, the customer is 100% liable for the debt. In very simplistic terms, if they aren’t receiving a substantial benefit, it’s akin to paying for something they don’t get to use.

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