Posted by notinfl on 11/27/05 12:04pm
Msg #78804

Rider question...

I know that in FL you must have the non borrower spouse sign the TIL,RTC,Mortgage and any Riders.
sometimes the loan docs already have their names preprinted and no worries, just have them sign where their name is.
However, the other day I had one of those and there was a prepayment penalty note rider which did not have the non borrower's spouse name preprinted. There was however a condo rider,the TIL,RTC and mortgage docs which had the name preprinted. I decided to not have her sign the prepayment penalty rider since her name was not preprinted, like on the other docs. Did I do right or wrong?? I called the TC but no one was available to answer me (after hours)

If her name would not have been anywhere in the docs,and I knew she was the non borrower spouse, I would have have her sign that one just because it was a "rider".

Was I wrong or right?

Sounds confusing right... well that is how I felt!!

TIA

Reply by Sylvia_FL on 11/27/05 12:11pm
Msg #78805

All riders to the mortgage must be signed by the non-obligator spouse.

Reply by PAW_Fl on 11/27/05 12:44pm
Msg #78808

Riders are a part of the mortgage. Whoever signs the mortgage must also sign all the riders.

Reply by Bob_Chicago on 11/27/05 3:24pm
Msg #78831

Don't quite agree

I think that the prepayment rider referred to was
a rider to the NOTE, not the mortgage
You have to look at the doc
Usually a rider to the mtg will say something like,
"this rider is attached to an made a part of a certian
Mortgage, (deed of trust) ( Security agreement)"
Paul is correct that all who sign the mortgage should
also sign all riders to the mortgage
Just make sure that the rider is not only for the note.
Frequently there will be two pre=payment riders, one
for the Note and one for the mortgage.
Also the issue of a non-borrowing spouse having to
sign the mtg is state specifiic. However, all who sign the
mortgage should also sign the RTC( if one is reqd) and TIL( also if reqd)
as a receipt
Paul will probably cite the applicable section, but if one is
reqd to sign the mtg/dot they should get a copy a TIL
and two copies of RTC.
Check if you can, but other than the NOTE and 1003, which are
big NO NOs , better too many signs than not enough
No, I am not practicing , nor advocating UPL

Reply by PAW_Fl on 11/27/05 3:32pm
Msg #78832

Re: Don't quite agree - Sort of ...

If it is a part of the note, then I agree. But typically, -riders- are attached to mortgages and deeds. Addendums are attached to the note. If there's a prepayment change to the note, there is usually a prepayment -addendum- to the note and a prepayment -rider- to the mortgage or DOT.

And you absolutely correct that signers of the mortgage would (in most cases if not all) need to receive a copy of the TIL and a Notice of Right to Rescind, normally a copy of the RTC. This is all part and parcel to Title 12 (Reg Z) which states that anyone with an ownership interest must have the Right to Rescind. If someone is on title, then typically they need to sign the mortgage. So using reverse logic, if they are required to sign the mortgage, then they probably are on title and therefore has an ownership interest in the property.

Reply by Julie Williams on 11/28/05 6:05am
Msg #78864

Bob is right

Any rider that references the NOTE should NOT be signed by the non-borrowing spouse. The note is the promise to pay with the terms spelled out, which is why the non-borrowing doesn't sign in the first place, this is not their obligation nor will it show on their credit report.

Any rider that references rider to Mortgage must be signed by all vested owners whether they are one the note or not.