Reporting requirements to credit bureaus

[Anonymous]

Looking to see if it regulations require that all financial institutions have to report a loan to the credit bureaus of anyone listed as "comaker" or "guarantor" on a first or second mortgage loan?

[DI]

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@Anonymous wrote:
Looking to see if it regulations require that all financial institutions have to report a loan to the credit bureaus of anyone listed as "comaker" or "guarantor" on a first or second mortgage loan?

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Welcome to the forum.  Lenders are not required to report info to the CRA's.  They are only required to report accurate info if they choose to report at all.

Many utility and cable companies only report your account if it become adverse.   

[Lel]

Question for clarification: is the "guarantor" of these loans actually a "co-signer"?  Is the guarantor on the title of the property, and was the guarantor's income required to qualify for the loan?

[Anonymous]

Just listed as a "guarantor". Not on the title of the property. Guarantors income was used in making the decision to approve the loan. Borrowers could not have procured the loan without the signature of the guarantor.

[Lel]

I'm probably going to get this wrong, but I think in this situation the guarantor may not actually be directly responsible for the monthly mortgage payments.  But if the actual mortgage holder(s) is/are unable to make the payments, then that's when the guarantor steps in.

Since the guarantor is not on the title, then it's not the same as being a co-signer.  The guarantor has no ownership rights in the property, and I believe a guarantor can be removed without as much hassle as removing a co-signer, the latter of which requires refinancing.

If my thinking is correct, then there may be no requirement or expectation for the mortgage to be reported on the guarantor's credit reports, and there may be no way to request that the loan appear on the guarantor's reports.

I'm going to move this thread to the mortgage board, so that the mortgage gurus can weigh in on this.  Like I said, I could be completely wrong in my thinking. 

[Anonymous]

if your income was used as a basis for determining loan eligibilty and DTI then you are on the hook for the loan.  No, no lender is ever required to report to the credit bureaus.  The CRA's are just information centers, not gov't entities and there is no way they could legally dictate that you had to report to them.

Who is on title has little to do with who signs for the loan.  Typically everyone on the lona is on title, but not always.

Occasionally they will allow a spouse to get a loan on their own name/income/credit with higher DTI levels than normal and will use the spouse's income as a compensating factor to allow the higher DTI loan.  This is not the same as being on the loan.   I think they only normally do that with spousal income though (but I could be wrong) 

[Lel]

I thought it was possible to be on the deed without being on the mortgage, but it was not possible to be on a mortgage and not on the deed.