Posted by ANS/MN on 1/30/06 12:55am
Msg #92252

Any issues with the new 1003??????

Lately, I have been coming across TC's and Lenders requiring even single borrowers to sign the front page of the 1003. Had one TC claim that Lenders are kicking unsigned ones back and holding up funding. Has anyone else had this come up?

I had a borrower that refused to sign the front page and Settlement Agent got all upset with me. Said that I should have told borrower that if she did not sign, loan would not fund. I guess she forgot about the "little issue" of my role as a signing agent prohibiting me from coercing a borrower into signing.

Just wondering if anyone here has any info I could use to counter this issue with, should I have a similiar situation come up again.

Thanks!

Reply by MichiganAl on 1/30/06 1:59am
Msg #92253

I've already gotten conflicting answers from different companies, so I have single borrowers sign as well. No harm in it, and it prevents anything from getting held up by someone who may or may not understand it. Borrowers already sign plenty of docs that don't apply to their situation. Your payment may be due in 30 days (even when it isn't), all spousal rights are being afforded to you (even if there is no spouse).

Reply by ANS/MN on 1/30/06 7:55am
Msg #92256

You're right, Al. They do sign quite a bit forms that don't apply to them.

The situation I described was an elderly woman who got upset about all of the forms that did not apply to her situation. She insisted on talking to the LO about a couple of these. Told him that she did not want these other forms going back with her signed package and insisted on tearing them up. She won that conversation. Unfortunately, the 1003 came up after her conversation with him and I was not about to get into a situation where she would want to tear off a piece of the 1003!

Hopefully, I don't run into the situation often. I just wish TC's and Lenders would make up their minds!

Reply by FlaMac on 1/30/06 8:04am
Msg #92259

The answer before you get yelled at for not doing "Search":)

Freddie Mac/Fanny Mae updated the form starting in Jan. 2006. Borrower's must sign at the top of page one. MAKE SURE THEY INITIAL THE BOTTOM OF PAGE ONE ALSO..seems redundent but they added the signature line at the top and left the initial lines at the bottom. Ridiculous! Below is part of the article...

"You may have already seen a change on some of the 1003 Universal Residential Applications (URLA), if not you should soon.
As of January 1, 2006 Lenders are suppose to be switching over to a new 1003-URLA. This new form will have a signature area in the upper right hand corner.

The understanding that we have on this is that when 2 people are applying for Joint Credit they have to sign this section. If it is a single borrower they do not have to sign.

Reply by Shane_OH on 1/30/06 8:08am
Msg #92262

Re: The answer before you get yelled at for not doing "Search":)

That may be the correct way to use this form, however; some lenders are Kicking it out if a single borrower does not sign there...

I don't think lenders quite have it figured out yet either.

Reply by FlaMac on 1/30/06 8:12am
Msg #92263

I have them both sign whether joint loan or not...

because you can't sign too often..only not enough. The new 1003's I'm seeing have the signature line in the top left side over the heading area and still have the initial lines at the bottom of each unsigned page including page one. So, check em twice before you leave the signing table

Reply by LawrenceOK on 1/30/06 8:43am
Msg #92268

Re: I have them both sign whether joint loan or not...

As far as I am concerned, the instructions just above the signature line are pretty plain, don't ya think? Would you have a non-oblicated borrower sign it? Perhaps the Lender and the TC's need to follow these instructions as well.

Reply by FlaMac on 1/30/06 8:49am
Msg #92270

Fla makes spouse sign and TC's aren't sure how to....

fill out the new form. So, until they all get on the same page...I have both borrower's sign. I see many packages that are not exactly correct. Many times the wife is not supposed to be on the 1003 but she is...better safe than sorry

Reply by MonicaFL on 1/30/06 1:59pm
Msg #92389

Re: Fla makes spouse sign and TC's aren't sure how to....

If you will look at that form closely, it states that IF the signers are doing so for JOINT CREDIT then both have to sign. I take this to mean that if both of their names are on the note, then both must sign the top of that piece of paper. JMPO

Reply by Ted_MI on 1/30/06 8:45am
Msg #92269

Re: The answer before you get yelled at for not doing "Search":)

Hi Fla Mac,

I had a refinance signing that was rather rushed (through no fault of my own - late docs) and totally missed the signature slots at the top of the page of the 1003. Not once but twice, as there were two 1003's. Heh, at least I was consistent. And it was a couple, so indeed they should have signed. Called the signing service and was very upfront up about what had happened. They enlightened me that indeed it was a new form, which I was not aware of and that this was not an isolated occurence.

Surprisingly, the next refinance signing I did used the old form.

Reply by Rick_NY on 1/30/06 12:19pm
Msg #92337

It's NOT "coercion" [Re: Any issues with the new 1003??????

> Said that I should have told borrower that if she did not sign, loan would not fund. I guess
> she forgot about the "little issue" of my role as a signing agent prohibiting me from coercing
> a borrower into signing.

A missing signature anywhere can easily cause a deal not to fund (even if it legally should have). Since when is it coercion or UPOL to so inform a borrower of that potential consequence?

Reply by Anonymous on 1/30/06 12:28pm
Msg #92342

All or None

I tell borrowers it is an all or none proposition from the bank as we start the signing. I tell them kind of in a joking manner, but the point is made. They either sign all or forms or not. If not, the transaction folds. After that, people pause occassionally on a form, but usually not to long and the signing just flies.

1000+ closings.

Reply by ANS/MN on 1/30/06 11:48pm
Msg #92509

OMG! I asked for experiences...

I have searched. Thank you. The threads discussed the new 1003. I simply wanted to know if anyone else had been running into the conflicting instructions from TC's and Lender's. If so, what was the outcome? I have had a TC ask me what notaries are running across regarding the issue as it appears to be causing confusion.

In response to the "coercion" comment. I simply did not want to detail how it was put to me. The Settlement Agent's bottom line was that I should have forced the issue with the borrower and made her sign if she wanted her money. Unless, I've missed something somewhere along the road, that is not my role as a notary. Having anything to do with holding someone's loan funding over their head when they do not want to sign something is not my job.

I posted the issue because I've found this board extremely informative concerning many technical issues. In addition, I have found quite a number of posters who have given great advice on how they handled inappropraite behavior of TC's and Lender's. WOW........