Reg B allows the Bank to require a non-applicant spouse to sign the Deed of Trust or Builders and Mechanics Lien Contract in order to cover their interest in the homestead. The Bank may require the signature of the other person or the spouse only on the instrument(s) necessary, or reasonably believed by the Bank to be necessary, under the law of the state in which the property is located, to enable the creditor to reach the property being relied upon in the event of the death or default of the applicant:
•If an applicant requests unsecured credit and relies in part upon property that the applicant owns jointly with another person to satisfy the creditor’s standards of creditworthiness;
•If a married applicant requests unsecured credit and resides in a community property state such as Texas, or if the property upon which the applicant is relying is located in such a state and
o Applicable state law denies the applicant power to manage or control sufficient community property to qualify for the amount of credit requested under the creditor’s standards of creditworthiness; and
o The applicant does not have sufficient separate property to qualify for the amount of credit requested without regard to community property; or
o If an applicant requests secured credit.