Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

If a spouse is not listed on a loan application, can a lender inquire about their credit?

1. Yes, for all loan applications

2. No, it is illegal

3. Yes, if the spouse is a co-applicant

4. It depends on state laws

The correct answer is: Yes, if the spouse is a co-applicant

The correct answer reflects the lender's ability to inquire about a spouse’s credit if that spouse is a co-applicant on the loan application. When both individuals apply for the loan, the lender has a vested interest in assessing the creditworthiness of all parties to the agreement. This ensures that the lender can accurately evaluate the risk involved in the loan, as both applicants are responsible for repaying the debt. If one spouse is listed as a co-applicant, the lender is entitled to request credit information related to that spouse since their financial responsibility is directly tied to the loan. This is crucial for ensuring that the lender complies with lending regulations and accurately assesses the overall financial picture presented by both applicants. In contrast, if a spouse is not included in the application or associated with the transaction in any formal capacity, the lender typically cannot inquire into their credit without permission. This reiterates the importance of being recognized as an applicant within the lender's process for credit evaluation. Assessing credit for individuals not part of the application could lead to potential violations of privacy laws or regulations governing lending practices.