I haven't spoke to my u/w acquaintance in a loooong time. If I can find something, I will. As for the legalities, PAW has addressed that issue:
Besides the agent possibly getting chewed out by underwriters and seller-servicers, we're basically asking someone to represent that another party is also undertaking the debt obligation when there is no such person.
As it states on page 3 of most 1003 App's "(1) the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation of this information contained in this application may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Sec. 1001, et seq. ...."
So if an investor buys the loan believing there is a co-borrower, and there is no co-borrower, well, it might be kind of a big deal.
While the agent may not be him/herself doing something illegal (such as backdating), they're asking someone to do something illegal. Will it ever really become a problem for a borrower? Probably not. But knowing what you know now, if you were a borrower, would you "just sign there so we can be done with this already?" |
