Posted by Rick_NY on 4/4/08 3:48pm
Msg #242220

Form 1003: non-marrieds "intend to apply for joint credit"

The loan is a joint account but the borrowers are brothers so they each have their own 1003.

Do they both sign the top right corners of each others 1003's, as would a married couple on one app who are borrowing jointly, even though the brothers income and assets are separately listed on the 1003 loan apps?

I have had people do as above in the past with nothing kicking back, just wondering about how other signing agents handle that.

Thanks!

Reply by SReis on 4/4/08 3:55pm
Msg #242221

Re: Form 1003: non-marrieds "intend to apply for joint cred

Usually check w/title but normally told ONLY to have them sign the 1003 that their name actually appears on.

Reply by CF on 4/4/08 4:10pm
Msg #242222

Re: Form 1003: non-marrieds "intend to apply for joint cred

Good question....from past experience I only have them sing thier own loan app.

Reply by Rick_NY on 4/4/08 4:10pm
Msg #242223

Re: Form 1003: non-marrieds "intend to apply for joint cred

Makes sense what you say. I have had conflicting instructions from the title agencies.

Thank you for the reply. I'll try it the way you said tonight.

Reply by PAW on 4/4/08 8:11pm
Msg #242250

Re: Form 1003: non-marrieds "intend to apply for joint cred

My instructions from more than a few title companies and lenders, as well as what I was taught in broker's school, was that the top of the 1003 is only signed when both applicants (note the plural) are applying for joint credit and both applicants are on the same 1003. If there are two (or more) applicants, but applying separately and not jointly, then each applicant would have their own 1003 and would NOT sign the top.

As an interesting note, the top portion of the 1003 has remained unchanged for many years, until last year when the one, single line was added about applying for joint credit, and the signature requirement in that section applies only to the added line. The preceding paragraph has been on the loan application for what seems like forever.

Reply by Joan Bergstrom on 4/4/08 10:08pm
Msg #242256

Re: Form 1003: non-marrieds "intend to apply for joint cred

PAW is correct but in the real world of loan signing you are probably better off have a "single" borower sign the top even though they shouldn't.

This is one fight that it is very hard to win as many companies consider it a "missed signature" if you don't have a single borrower sign the darn thing.

Reply by JanetK_CA on 4/5/08 12:18am
Msg #242268

Re: Form 1003: non-marrieds "intend to apply for joint cred

That makes a lot of sense to me. Unfortunately, there seems to be a great deal of confusion and misinformation about this change. I once had a signing service insist that I go back for a second trip to get a SINGLE borrower's signature on that line. They were adamant about it. Fortunately, I was scheduled to be right in the same area that day so I just did it in the interest of protecting my reputation, but naturally, I was significantly less than thrilled! I stopped accepting jobs from them shortly thereafter...

Reply by Susan Fischer on 4/5/08 12:44am
Msg #242272

It does not say "spouse." It says "borrowers."

"We," "joint;" "our, "both." All are plural. The signature lines are labeled "borrower" AND "co-borrower."

The point of this 'clarification' was to remind JOINT borrowers that THEY BOTH are responsible for the debt, regardless of whose income/credit report info was used to determine underwriting decisions.

Every borrower signs on the last page of a FEDERAL FORM UNDER OATH that they have told the truth on the application, which i,ncludes among other things, that they are applying for joint credit as evidenced by a signature of co-borrowers on the first page, or that they are single borrowers by not signing that statement.

To have a single borrower sign a federal form under oath that she is applying for JOINT credit, as opposed to individual credit, is totally misreading the form.

Where an uninformed TC or lender DEMANDS a signature from a single borrower, the borrower can add, "single borrower' after the erroneously 'required' signature on that first page line.

Many savvy signle borrowers actually read the paragraph, and understand it's instructions.

Reply by Joan Bergstrom on 4/5/08 1:39am
Msg #242279

Re: It does not say "spouse." It says "borrowers."



I can't win this argument with a company who wants it signed.

Susan is right, PAW is right, and I am right, but it doesn't change what I think the industry wants?

Reply by linda/ca on 4/5/08 1:39am
Msg #242280

Re: It does not say "spouse." It says "borrowers."

I always have a single borrower sign the top of the 1003 and where it says co-borrower, I have them put n/a or draw a line in order to appease the companies.........never a problem.

Reply by ReneeK_MI on 4/5/08 5:45am
Msg #242283

1003's are separate because ...

When the 1003 data fields are entered into the computer, the information from the credit report is imported into the 1003 form directly from the credit bureau's site (rather than having to type it all in). While you can merge CR's of a married couple, you can not merge separate, individual credit reports (people who are not married to each other). The only way to put individual borrowers (not married to each other) together on one loan (borrower/co-borrower) is to open two individual files (begins with 1003 & credit report), and then 'link' those to each other.

Anyway - you'll end up with two separate 1003's, even though they ARE borrower & co-borrower, and the loan is held jointly, will show on BOTH credit reports of these individuals. While these are printed as separate 1003's, the loan has been applied for 'jointly' by them and they are jointly liable.