Posted by TCMN on 3/2/06 11:51pm
Msg #101556
I know it's been talked about and maybe this is a stupid
question, but how come everyone is having a hard time with this new 1003? I would think that it shouldn't matter...just do what the client tells you to do. And make damn sure you ask to make it thier decision on how they want it.
I don't care if it's an extra step but I will email back to first let them know I got the confirmation, but secondly to just say...
"Just one question...with all the confusion that seems to be happening with the new 1003, could you please just confirm exactly HOW you want that first page taken care of?" (That's of course they haven't already added that to their instructions since they all seem to be)
But on another note...this is the verbage for the new 1003, page 1 paragraph;
______________________________________________________
This application is designed to be completed by the applicant(s) with the Lender's assistance. Applicants should complete this form as "Borrower" or "Co-Borrower," as applicable. Co-Borrower information must also be provided (and the appropriate box checked) when [ ] the income or assets of a person other than the Borrower (including the Borrower's spouse) will be used as a basis for loan qualification or [ ] the income or assets of the Borrower's spouse or other person who has community property rights pursuant to state law will not be used as a basis for loan qualification, but his or her liabilities must be considered because the spouse or other person has community property rights pursuant to applicable law and Borrower resides in a community property state, the security property is located in a community property state, or the Borrower is relying on other property located in a community property state as a basis for repayment of the loan.
If this is an application for joint credit, Borrower and Co-Borrower each agree that we intend to apply for joint credit (sign below):
________________________________________________________________
I see the 1003 to read as follows (and I am not an attorney giving any advice, just an interpretation)
1. Borrower (or Applicant #1) needs to sign no matter what on page 1 (and all other pages)
2. A Co-Borrower (Applicant #2) would sign Page 1 (and all others) if their income is being used to qualify for the loan (= a joint application)
Or
The borrower’s spouse ( or NOT a spouse) is NOT using their income to qualify BUT their LIABILITIES MUST BE CONSIDERED because THEY live in a COMMUNITY-PROPERTY RIGHTS STATE
AND (any of the following ALSO apply)
- the BORROWER resides in A COMMUNITY-PROPERTY RIGHTS STATE
- THE SECURITY PROPERTY resides in A COMMUNITY-PROPERTY RIGHTS STATE
- OR the BORROWER is relying on OTHER PROPERTY (example - 2ND home) that is located in A COMMUNITY-PROPERTY RIGHTS STATE as BASIS for REPAYMENT
I’m not saying I’m correct (because it's far past my bedtime and my eyes can barely stay open - so I'll apologize for missing anything if I do. I'll reread it in the morning) but it’s my interpretation. I will ultimately do whatever the client asks though and so should everyone else to CYA.
Just had to say that after finally getting a minute to check out NOTROT and see this asked about again.
thanks for reading.
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