Posted by Gigi/CA on 3/25/07 5:11pm
Msg #181890

NBS what is this acronym??? What document HELP!!! n/m

Reply by DebbieT on 3/25/07 5:15pm
Msg #181891

Orange search button will have that information for you. n/m

Reply by Leon_CO on 3/25/07 5:23pm
Msg #181894

Re: NBS what is this acronym??? What document HELP!!!

Since I recently wrote an article about this, I almost feel a responsibility to explain what the term NBS means:

Non Borrowing Spouse

As far as the documents, check your PM.

Good luck.

Reply by Dorothy_MI on 3/25/07 6:17pm
Msg #181901

Sounds like a test question to me n/m

Reply by Larry/Ca on 3/25/07 9:15pm
Msg #181912

Yes, and the question is always...

what MUST the NBS sign. The answer should be NOTHING. Is there anyone here that thinks there is a LAW that mandates this SIGNATURE? If the question is what SHOULD the NBS sign? Then, the answer would be whatever you are INSTRUCTED to have them sign. It is not surprising that persons seeking answers to this question would look to experienced loan signers for an answer. It is not easy to find a resource to guide you here.

Reply by CJ on 3/25/07 10:27pm
Msg #181918

Re: Yes, and the question is always...

I have never seen that acronym, so I appreciate the information. Sometimes in my packages, the NBS has to sign a paper that says they understand there is a new loan on the property. I think it is becuase if the property goes into foreclosure, they don't wake up one day with a complete surprise on their hands (and start suing people).

Reply by Sharon Taylor on 3/25/07 10:35pm
Msg #181920

The answer is....depends on state and circumstances

Here in TN, if the property being mortgaged is the married couple's "homestead", then the Non-Borrowing Spouse MUST sign at least the DOT, RTC, TIL (and the title company may require others) since the NBS has a legal interest in the homestead property and must indicate that he/she is aware of and consents to the mortgaging of it. (As explained to me by different attorneys I asked who told me TN is a "partial homestead state" - I don't practice law or want to). If the property is not the "homestead" and is instead rental property, a vacation home, investment property, or whatever, then the NBS does not need to sign any documents, I was told.
Obviously the answer to the question depends first on what state you are in.

Reply by Larry/Ca on 3/25/07 11:33pm
Msg #181928

Sharon, it makes a lot of sense.....

that the lender would want to take not only the borrowers half of the house but the non-borrowers also, hence would want them to sign the DOT. And it is true that the TILA/RESPA by law requires that persons with an interest be given disclosures. Those laws do not say that the person must acknowledge by signature receipt of those disclosures. While there very well may be a law somewhere that states that a signature of a NBS is required on something, you yourself defer to being informed by an attorney that this is required. In all the many times this has been discussed, here and elswewhere, nobody has ever pointed to a law that stated the NBS MUST sign whetever. Most will ask what if any documents they want the NBS to sign. Few if any will simply add NBS's signature to documents on their own volition. Many would see this as UPL.

My point is that this question as to what the NBS must sign depends a lot on circumstances and only the document originator can tell you what is needed here. As a signing agent you are not bound by law to do anything other than is requested by the documents originator.

It really does not make sense to ask a new signing agent to come up with an answer for this question. This information comes in instructions and you learn with experience and is not necessarily taught in signing agent courses.

People will continue to ask this on this board because this information is simply nowhere to be found.

Reply by PAW on 3/26/07 7:42am
Msg #181950

Re: Sharon, it makes a lot of sense.....

With property held "in its entirety", there is no "half" to relinquish. Typically, homestead property held by married couples, is held in its entirety so that a half of it can't be in jeopardy. The property is "indivisible" in these circumstances. Therefore, many states that have homestead laws, that require the non-obligated spouse to acknowledge there is a lien on the property and basically agree to waive their homestead right should the property go into foreclosure. Thus the need, by state statutes, laws or Constitutional Amendment, to have the NBS sign the DOT/mortgage.

As you stated, the Federal statute (Title 12 - Reg Z) dictates that all persons with an interest in the property, must receive certain disclosures, commonly the RTC and TIL. Whether or not those disclosures require a signature is up to the lender/title company if they want proof of receipt.