Posted by Ali/IL on 10/27/09 12:38pm
Msg #308837

1003 question

I don't have borrowers sign on the top line when it is only a borrower signing. After 5 years of signing for a title company today they called saying that I have to have the borrower sign there.
I told them that I never have them sign unless there is a coborrower involved and that in the last 5 years they haven't told me this.
She said that is ok don't worry about it. She said that what they do is call the borrower and have them sign that page. She didn't give me a straight answer.
I do know that some lenders require that but, this one has never asked for that before.
It is BOA

Reply by GA/Atty on 10/27/09 12:47pm
Msg #308840

That signature is the borrower's acknowledgement that

he or she is applying for join credit with another borrower.

It should never be signed when there is only one borrower.

However, because many loan offices, closers, auditors, notaries and attorneys do not understand the very plain language on the form, they want them signed anyway.

It doesn't hurt to make them happy if you know it's going to be an issue, but otherwise I don't ask solo borrowers to sign it.

Reply by Cam/CA on 10/27/09 12:51pm
Msg #308843

Re: That signature is the borrower's acknowledgement that

We what it says, but whenever I have a single borrower I always check and see if they want it signed, 95% of the time they do.

Reply by John/CT on 10/27/09 12:52pm
Msg #308844

Solo borrower signature top of 1003

He said, "... because many loan offices, closers, auditors, notaries and attorneys do not understand the very plain language on the form, they want them signed anyway. It doesn't hurt to make them happy"

I do it as a matter of practice. Never had a comeback to bite me.

Reply by parkerc/ME on 10/27/09 3:24pm
Msg #308870

Re: Solo borrower signature top of 1003

I also have a single borrower sign, and have him/her write N/A on the second signature line.

Reply by PAW on 10/27/09 1:07pm
Msg #308850

Re: That signature is the borrower's acknowledgement that

I agree Ed. I have had many discussions with lender underwriting and title insurance company attorneys about this. One attorney (or underwriter, not sure which) once told me that if it is signed by a sole borrower, then underwriting would reject the application looking for the "co-borrower that is jointly applying for credit" as is explicitly stated in the sentence immediately above the signature lines:

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

Reply by Scriba/NM on 10/27/09 12:50pm
Msg #308842

If they bothered to read the requirements for completion of the 1003 (which they don't because they appear to employ 12 year-olds to staff their offices) - that section needs only to be signed (1) if there are more than one borrower or (2) a box is checked indicating that the loan is being made using the income of more than one entity (person). Countrywide (now BAC) never used to require that. Now that BAC is driving the boat, things are changing.

That being said, I am seeing more and more companies that think that the single borrower must sign - so.......I just have everyone sign there now. I am tired of arguing with dimwits, therefore, an oversign won't hurt anything and now any and all complaints have ceased. It's too difficult to fight dumbness on a grand scale.

Reply by Calnotary on 10/27/09 12:54pm
Msg #308846

I do the same as you Ralph, I know it should be sign only if more than one borrower but it's better to have them sign even if it's one borrower because someone will say that it needs to be signed.

Reply by davidK/CA on 10/27/09 12:52pm
Msg #308845

The top line on the revised 1003 is typical government BS. Logically it should only be signed if the application is made using "Joint credit" but as is used in many cases the lender/TC wants it signed even if it's only one individual applying for a loan.

The simple solution is to go ahead and have the single applicant sign the top and initial on the bottom of the page as well. Stupid? Yes, but it's hardly the only stupid thing that is required in a typical loan package, especially BOA/Countrywide loans.

When compared to three different forms acknowledgeing the insurance requirements, or the two different forms for a name statement, etc. this is IMHO at least an easy one to deal with.

Reply by Shoshana/AZ on 10/27/09 1:01pm
Msg #308849

I particularly like the form about the the credit life and disablity insurances. That really makes a lot of sense.

Reply by Lee/AR on 10/27/09 1:08pm
Msg #308851

Thanks, NRers...you just saved me 1 piece of paper

I've just been doing it both ways with that lone Borrower...and they can shred whichever one they don't want.

Reply by OR on 10/27/09 1:18pm
Msg #308853

Re: Thanks, NRers...you just saved me 1 piece of paper

I have it signed every time. It has never been a problem with that either.

Reply by JanetK_CA on 10/27/09 3:54pm
Msg #308877

Me, too.

Ever since one signing service insisted I go back for a second trip to get that line signed by a single individual (back when the requirement was still new), I have everyone sign. If there is no co-borrower, I have them add "NA" on the line for the co-borrower. Haven't had any problems since, either.

Reply by Shelly_FL on 10/27/09 5:23pm
Msg #308891

I explain what its for and the requirements of certain lenders, then let the borrower decide whether they want to sign and enter NA for the co-borrower. Then if some one gets their panties in a wad over it, I explain that the borrower refused to sign there.

Reply by TRG_wy on 10/27/09 5:52pm
Msg #308895

I do as you have stated.

In my book if you read it, it plainly explains when it should/should not be signed. I leave it to the borrower - but I personally did not and will not sign my own 1003. ( I am single)

Reply by CopperheadVA on 10/27/09 6:41pm
Msg #308905

I always have the borrowers sign at the top of the 1003 - whether single borrower or two borrowers. Part of my job is to make sure that everything is completely signed and therefore I don't have to go back again for free. I'm not going to ask every company if they want it signed by a single borrower or not - I just have the single borrower sign it and move on. I've never had one come back saying I shouldn't have done it.

Reply by MW/VA on 10/27/09 8:52pm
Msg #308921

Ditto.

Reply by Yowheelz on 10/28/09 8:46am
Msg #308964

Unless instructuions specifically say "Do Not Get Signed"

I have borrower sign the top. I had too many arguments with TC's over this issue, one even insisting I have wife sign when she wasn't on the 1003 and wasn't on the note. I now always get it signed and have not had a problem since.