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#1669586 - 02/24/12 05:57 PM Strange scenario: Joint borrowers separate
transy05 Offline
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Joined: Jul 2011
Posts: 25
If anyone has an opinion on the following scenario, please let me know:

An engaged couple applied for a joint loan to purchase a home. Their early disclosures were in both names.

Now we are almost to our closing date and the borrowers have separated. Now the man wants to get the loan in his name only.

Do we need to redisclose our early papers and make him wait 3 days before closing if we are not changing any of the loan terms? Does the woman have to sign anything saying that she no longer wants to be on the loan?

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RESPA
#1669627 - 02/24/12 06:56 PM Re: Strange scenario: Joint borrowers separate transy05
Truffle Royale Offline

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Posts: 17,341
Re: disclosures - you might have a valid cc but no fees changed so I wouldn't redisclose.
The borrowers have countered your approval of the joint loan.
You document your file.
You redo the underwriting to make sure that he qualifies for the loan on his own and proceed from there.

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#1684854 - 04/02/12 06:42 PM Re: Strange scenario: Joint borrowers separate transy05
Christine81 Offline
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Joined: Mar 2011
Posts: 78
How would you report this for HMDA? The application is joint, however, loan closes in one name. Thanks.

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#1684865 - 04/02/12 06:57 PM Re: Strange scenario: Joint borrowers separate transy05
Truffle Royale Offline

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They removed her as an applicant when they countered your joint approval. You're reporting the loan as originated (closed) so you report how it closed which would be in his name only.

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#1684877 - 04/02/12 07:13 PM Re: Strange scenario: Joint borrowers separate transy05
Christine81 Offline
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Joined: Mar 2011
Posts: 78
Thanks, that was my original thought, and then started overthinking.

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#1707850 - 06/07/12 01:27 PM Re: Strange scenario: Joint borrowers separate transy05
KatieL Offline
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KatieL
Joined: Dec 2010
Posts: 177
Midwest
I would like to piggy back on this question... we have a joint application for a purchase money mortgage for a married couple; but the purchase agreement for the home is only in the husband's name. The seller (OREO/FNMA) requires the HUD match the P/A identially, so we need to remove the wife from the loan (Husband qualifies on his own).
Do we issue a counter-offer since it's more of a technical issue on why she's being removed, rather than the borrowers countering us? Any thoughts are appreciated!
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#1707865 - 06/07/12 01:35 PM Re: Strange scenario: Joint borrowers separate transy05
rlcarey Offline
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rlcarey
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Posts: 78,958
Galveston, TX
"so we need to remove the wife from the loan (Husband qualifies on his own)."

There is no "we" in this scenerio. The borrowers need to meet the requirements of the seller not the bank. You should inform them of the situation and then either have them send you a letter indicating that they are amending their application due to seller requirements (removing the wife) or arrange for an amendment to the purchase contract (to add the wife). Keep the bank out of this - this is their decision with the guidance of their legal counsel.
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#1708378 - 06/08/12 02:41 PM Re: Strange scenario: Joint borrowers separate transy05
RR Joker Offline
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The Swamp
PD, we had a similiar situation with a HUD foreclosure. Application was joint, but only one had entered into the contract...we had to move the other one to guarantor to appease HUD.
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#1708385 - 06/08/12 02:50 PM Re: Strange scenario: Joint borrowers separate transy05
KatieL Offline
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KatieL
Joined: Dec 2010
Posts: 177
Midwest
Thanks for the responses! We're having the applicants write a letter requesting for the the co-applicant to be removed...

IMO - this is DUMB! Why the seller cares who the borrowers are on the HUD (as long as at least the purchaser is on there) is beyond me! They need to mind their own damn business, stop making the process so cumbersone and be happy they are selling these homes to qualified buyers. HMPFT! mad Ok - rant done for the day. I feel better now, TGIF smirk
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