Posted by TLR_KY on 8/26/05 11:01pm
Msg #62121

Non-borrowing spouse signing forms

I just did a signing for PSS. I was at the signing and about 8 of the forms only had the husband. The forms were Escrow Waiver, Equal Credit Opp. Act, Hazard Ins. Act.,Impound,RESPA, Right to Appraisal, etc. The husband was the only one with his name printed. The wife wanted to print her name and sign. I saw no problem with this. So she did. She was not on the NOTE and did not sign it. The only notarized doc was a Occ. Aff. She signed this and printed her name. I called PSS and explained that the wife had signed the other docs but not the NOTE. I had noticed on there instruction sheet that "If only one person is on the financial documents, only that person will sign the financial documents. PLEASE be aware that oversigning will negte the loan." I took this to mean the NOTE as a financial document. I have done many of these and have had the spouse print and sign these other docs. The person at PSS said that they did not know what the lender would consider lending docs and I should have instructed the spouse she could not sign. Am I correct the the financial docs are is the NOTE and any riders to the NOTE.

Reply by tidarod on 8/27/05 2:07am
Msg #62147

It's my understanding that the borrowers only sign where their names are. Unless otherwise stated. The escrow company I work for gives me a list of what the non-borrower has to sign and on all of those docs, the nb names are there. I was also told the same thing about if they over sign, the loan may not go through. That is my experience. I hoped I helped.

Reply by Renee_MI on 8/27/05 5:34am
Msg #62170

Non-Borrowing spouses/title-holders should not sign anything without a signature line prepared for them, EXCEPT Mtg/DOT, RTC, TIL (in the event that signature line is missing) or you risk presenting an unmarketable and/or non-compliant loan back to lender. Aside from the Note and the 1003, there are no absolutes as to what docs can be 'over-signed' and remain acceptable - it depends on the specific desires of the investors purchasing that lender's loans, and those desires change all the time.

When faced with a non-borrowing signer who 'insists' on adding their signature - forgive me for this but my opinion is that the SA should have the knowledge and confidence to be able to offer certain fundamental information that enables the borrower & non-borrowing signer to correctly execute their docs. When faced with someone who still insists on over-riding their lender's requirements - I would ask THEM to write a note stating THEY insisted on signing a particular doc and that they were advised that it may negate their loan, and put that note in the package.

Reply by PAW_Fl on 8/27/05 4:09pm
Msg #62233

EXACTLY!!!