Wyoming House Bill HB0161

Wyoming 2023 Regular Session

• Introduced: 1/19/23
• Report Pass: 1/25/23
• Engrossed: 1/31/23
• Refer: 2/16/23
• Failed: 2/24/23

Caption

Loan disclosures for guarantors and co-signers.

Impact

The introduction of HB 0161 is set to impact the banking and lending practices in Wyoming by enhancing transparency concerning the roles of guarantors and co-signers. It ensures that individuals in these roles are fully informed of their legal standing and rights associated with the loans they are backing, which can help prevent potential misunderstandings or disputes regarding ownership and rights in the collateralized property.

Summary

House Bill 0161 aims to establish a requirement for financial institutions to provide a specific loan disclosure for guarantors and co-signers at the time a loan is made. The bill mandates that any individual acting as a guarantor or co-signer must acknowledge receipt of a document that clarifies their rights in relation to the property involved in the loan. This disclosure serves to inform the guarantor or co-signer that simply agreeing to be a guarantor does not automatically grant them any rights or interests in the property pledged as collateral for the loan.

Sentiment

While detailed discussions around HB 0161 did not highlight extensive debate, the sentiment among lawmakers appears to favor the idea of increased disclosures as a consumer protection measure. Supporters likely view this transparency as a positive step towards informed consent in loan agreements, while opponents may express concerns regarding the additional paperwork or potential burdens on lenders.

Contention

Potential points of contention surrounding HB 0161 could arise from the balance between protecting consumers through disclosures and the administrative burden placed on financial institutions. Concerns may be raised about how these requirements might affect the willingness of lenders to extend credit, especially in cases where such disclosures could complicate the borrowing process for potential co-signers and guarantors.