Posted by kellieco on 5/17/07 6:37am
Msg #190536

new one on me

I did a signing for a single woman last week. Sent the docs back. Lender made me go back and have her sign the top of the 1003. I thought that section was for co-borrowers. Has anyone else had that happen to them?

Reply by Ernest__CT on 5/17/07 6:38am
Msg #190537

Signing the top of the 1003 ...

... has been discussed to death. Please use the orange Search feature.

Reply by kellieco on 5/17/07 6:45am
Msg #190539

Re: Signing the top of the 1003 ...

Sorry

Reply by Lisa Prestegard on 5/17/07 6:45am
Msg #190540

Kelli, check your private messages n/m

Reply by LynnNC on 5/17/07 9:08am
Msg #190559

The instructions make it seem like the borrower should sign only if there is a co-borrower. After I had 1003's with the sole borrower's name filled in at the top several times, I began to always have a borrower sign at the top. I have never had any complaints.

Reply by Susan Fischer on 5/17/07 10:28am
Msg #190579

There are two schools of thought on this: 1) That

because the instructions say "IF this is an application for joint credit, THEN both borrowers must sign below..." (or similar language,) and the signature lines are labled "borrower; co-borrower - a single borrower does not sign, as (s)he is not applying for joint credit. [emphasis mine] And the 2nd school: that because the language doesn't specifically address a single borrower, a single borrower must sign.

To me, the language is clear, and I have signle borrowers put "N/A" to show that the item wasn't ignored or forgotten, and that the reference to joint credit doesn't apply. Never had a problem. Those who follow the second school have signle borrowers sign, and don't have problems either.

In my non-legal opinion, the rationale for the introduction of this item on the application was to drive home the fact that co-borrowers are equally liable for the debt. Having a single borrower sign the statement therefore serves no purpose, because there is no co-borrower on the application, and, the borrower signs the application in several places as the applicant, the final signature being under oath that the information is true on the form. In my mind, signing a statement that one is applying for joint credit when one is not, is a false statement. Others disagree with a different point of view.

The language is apparently ambiguous, and therefore open to interpretation. So, I guess it boils down to lender "requirements," and their point of view.

Cheers!
Susie

Reply by LynnNC on 5/17/07 4:02pm
Msg #190655

Re: There are two schools of thought on this: 1) That

Many lenders have the name of a sole borrower typed under the "Borrower" line at the top of page 1.

Reply by Susan Fischer on 5/17/07 5:36pm
Msg #190683

From a CW 1003 I have in my hand:

"If this is an application for joint credit, Borrower and Co-Borrower each agree that we intend to apply for joint credit (sign below): Borrower_____ Co-Borrower___"

That's perfectly clear to me: 'Joint," "each," "we," and two signature lines = joint borrowers only sign.

If some other lender has a single borrower's name pre-printed, then I guess I would go with that after confirming. I don't care one way or another what other people do. This is only my opinion, but I will add that I have not seen an argument that persuades me to construe the language otherwise.

Cheers!
Susie

Reply by MikeC/NY on 5/17/07 7:10pm
Msg #190696

Re: There are two schools of thought on this: 1) That

I've received instructions from some lenders stating that they want the borrower to sign that line even if there is no co-borrower, and others don't seem to care one way or the other. I generally just ask the borrower to sign there, even if it's not specifically required by the lender. I don't think the 1003 is a document where an unneeded signature is going to be a problem. No one has complained (yet) about getting one too many signatures on the document; I'm sure they would complain about getting one too few.

Reply by BrendaTx on 5/17/07 8:36pm
Msg #190706

Re: There are two schools of thought on this: 1) That

When in doubt take an extra copy and do it both ways.

Sometimes bwrs who have been jacked around (and delayed trying to get one borrower only on the deal rather than two) won't sign that line. I haven't had a problem when they didn't sign it.

Now if I have specific instructions about it, I ask them to write on there "does not apply" and initial. No problem with that either.

I don't think the makers and users of that form even know why that is even on there sometimes.