Here we go again. It's so unfortunate that this practice of misinforming prospective clients to gain their business is so widespread and not regulated. In my case it is a flat out lie, but the client wants to believe, so they follow the person who tells them what they want to hear.
This major banking institution, which I will not name, has assured my client that they will remove a co-borrower (and their entire financial obligation) from the first loan, and allow them to do a second to buy out the partner. We all know that the only way to remove a co-borrower from a loan is to refinance, this is the only way to remove them completely from the obligation and consequences in connection with a late payment or a default.
If you are buying your partner out, you want to be completely off that loan. There is no guarantee that your partner, whom you are no longer in touch with, is going to make timely payments for the next 24 some odd years left on the loan. Who would want to expose their credit to that chance? NOBODY!
Bank employees originating loans are not required to hold a real estate license. Maybe they should be, then they would have to study and pass the ethics portion of the real estate exam. That way they would at least get a glimpse of ethical behavior...