Posted by Barbara___IL on 5/29/08 3:49pm
Msg #249273

unmarried couple to sign separate 1003s..quick question

The borrowers are an unmarried couple. Both names are on the Mortgage and Note. I have separate 1003s for each of them to sign. Should I just have one sign at the top of his or her 1003 or both sign each 1003?

Thanks in advance for any help.

Reply by Les_CO on 5/29/08 3:53pm
Msg #249274

I would have them each sign their indivudal 1003's

Reply by Bob_Chicago on 5/29/08 4:03pm
Msg #249278

Can't cite any authority, but as as read the language...

on top of 1003 "if this is an application for joint credit..." an argument can be
made that each should sign their 1003 as borrower and
2nd party should sign the other's 1003 as co-borrower.
I would be interested in what PAW has to say on this issue.
I would try to reach someone at TC, etc to ask.
Would be interested in their answer also
Dox just finished printing
gotta run

Reply by Linda Juenger on 5/29/08 4:17pm
Msg #249283

Re: Can't cite any authority, but as as read the language...

I just had this a couple weeks ago. I only had them sign their each individual one. No one to reach that night and it hasn't come back to me.

Reply by Lee/AR on 5/29/08 4:21pm
Msg #249285

Re: Can't cite any authority, but as as read the language...

Good question. Think I'd ask TC what they want.... and then let us all know! Of course, this could be TC-specific. When the 'new' 1003 began, seems like everybody had their own idea of who should sign where. Did it every which way for a year & even began taking an extra Pg. 1 & having a single B leave one unsigned & sign the other---take your pick--either way I don't have to make an extra trip.

Reply by MistarellaFL on 5/29/08 4:23pm
Msg #249287

Re: Can't cite any authority, but as as read the language...

FWIW, each time I have asked a TC, they have told me their rule of thumb is both should sign IF they are both listed on each other's 1003.
BUT ASK YOUR OWN HIRING PARTY.

Reply by Les_CO on 5/29/08 4:30pm
Msg #249288

Re: Can't cite any authority, but as as read the language...

She asked a quick question, I gave a quick answer. I don’t know where the property is located, a Community Property State, or Spousal State, etc. or how these two people are taking title, (tenants in common, joint tenants, etc.) Of if it’s their primary residence? Or a rental or investment property? Or if they are married (to someone else, and own property in another community property State, and want that property considered collateral against this loan? I guess I’d have them read the top of the 1003 and decide for themselves. But if the lender (that has already approved the loan) didn’t want two separate 1003’s signed they would not have sent them. Maybe? What I’d do here in CO is have them each sign one.

Reply by MistarellaFL on 5/29/08 4:39pm
Msg #249289

Re: Can't cite any authority, but as as read the language...

What you said sounds right IME.
But, if I were the original poster I would cma and ask the proper authority.

Reply by PAW on 5/29/08 7:35pm
Msg #249322

Re: Can't cite any authority, but as as read the language...

According to the compliance department, the language at the top of the 1003 that requires a signature is used only when the borrowers are applying for joint credit. Typically, unmarried persons cannot apply for joint credit, and as such, much individually submit separate loan apps (1003). They should NOT sign the top of the 1003, nor each other's 1003 in this case.

Reply by Susan Fischer on 5/30/08 1:20am
Msg #249362

I do that. Unmarrieds, parent/children, for instance. The

signature lines are "borrower and co-borrower." How else could you deal with individual 1003s for multiple borrowers for one mortgage loan?

There are three rationales for that 'joint credit' block: to track single borrowers vs joint borrowers, identify all borrowers for a particular mortgage, and perhaps most importantly, to remind all borrowers they are each applying for that loan, and therefore are each responsible for repayment. Single borrowers put "N/A" on the first signature line denoting they read the paragraph, because the response to the very first premise: "If this is an application for joint credit," is "No, it's not an application for joint credit," so the remainder of the paragraph becomes moot.

Haven't ever had a problem.

Reply by Barbara___IL on 5/29/08 5:30pm
Msg #249298

It's a refinance...primary residence. They have a QCD which is quitting their loint tenancy. They are listed on the mortgage with their individual names and an unmarried man or an unmarried woman next to the name. I'm trying to get the sa to tell me what they want. If they don't, I'll use my best guess (with all of your input). They are both signing the note and separate TILs.

Thanks..will let you know what I find out.

Reply by Linda Juenger on 5/29/08 6:20pm
Msg #249311

Why seperate TIL's? n/m

Reply by PAW on 5/29/08 7:46pm
Msg #249324

One needs to understand "Joint Credit"

Joint Credit is credit that is issued to a couple taking into account their combined credit histories, assets, and incomes. It's not too often that two unmarried people can even have joint histories because of the way joint credit is treated by the credit reporting agencies and the IRS. When there is joint credit established, one borrower's SSN becomes a second source to the other borrower's SSN when searching histories, assets and incomes, especially when reported to the IRS. That is why joint credit is usually only for married couples. (There are exceptions, of course, such as parent/child cases. But these are rare in respect to what we do.)

I'm not sure how things are being handled by the credit reporting agencies and the IRS with regards to 'civil unions' and/or same-sex marriages and joint credit issues and reporting.

Reply by Les_CO on 5/29/08 8:46pm
Msg #249336

Re: One needs to understand "Joint Credit"

How "PAW" finds these answers I don't know. But you can rely on what he says!! You single guys that want to stay that way, take note.

Reply by Dave_CA on 5/29/08 8:56pm
Msg #249338

I just had one this morning

it was a family with mother, father and eldest son on the note and a younger son also on the title. There were 3 separate 1003s. one for each person on the note.
I asked title and was instructed to have the person named on the 1003 sign as borrower and the other 2 as co-borrower on each one.
This was in CA for a CA property.
I don't know if this would apply in another signing but this was the instructions for this case.
I think if it came up again I would ask. Assuming someone was available.

Reply by linda/ca on 5/31/08 12:54am
Msg #249449

Re: I just had one this morning

Better to ask, if possible. I had one recently and had co-borrower sign the 1003 of the other person that were same sex partners. Was told later by this particular company that the second person should not have signed the other borrower's 1003. So, as mentioned by someone earlier......this must be lender specific.