Cosigner

From Open Risk Manual

Definition

Cosigner. Someone who commits to fulfil the obligations of the Borrower in the event that the Borrower defaults on the loan.


Issues and Challenges

A co-borrower is different than a cosigner in that a cosigner takes responsibility for the debt should the borrower default, but does not have ownership in the property. Co-borrowers are frequently spouses or partners who use their combined income to qualify for a larger mortgage than could be obtained singularly, and are willing to share the risk of default on the mortgage and the general risks of homeownership. Review session notes 19 May 2011 usually identified by some identifier such as SSN, whether individual or a corporation. Contact information is at legal entity level. co-borrower or co-signer. Are these synonymous? Sometimes. Also have a concept of "Joint Borrower" e.g. a married couple. The legal entity which is the Co-borrower may become the Borrower under certain circumstances. Student Loans: The student may be the borrower, or the parent may be the borrower on behalf of the student. Student would not normally be a co-borrower but in theory it could. The co-borrower is someone with more established credit. Other factors: legal age - you need ot be of legal age in order to sign the Loan Contract, this is because you have to be a Legal Entity. so then the adult is simply the Borrower. Also potentially have references on the loan. These would come in handy later. These may be related to the student or the borrower.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.

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Facts about "Cosigner"
IsDefinedBy
URI of an entity that is defined via an imported vocabulary.
https://spec.edmcouncil.org/fibo/ontology/LOAN/Loans/LoansParties/index-en.html +