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#1687755 - 04/11/12 01:23 PM Adding a coborrower and disclosures
CaseyBoo30 Offline
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Winchester, KY
If the lender decides at the last minute to add a person as a co-borrower (originally they were just a grantor and not on the application)on the refinancing of a consumer mortgage loan, is there a way to provide the required disclosures without delaying closing?

The person that the lender wants to add did receive an early TIL (lending software generated this for some reason) but they did not receive the GFE, ARM Disclosure or the servicing disclosure.

Since it appears that the person to be added received the early TIL within 3 bus. days of application and not later than 7 bus. days before closing, can the other documents be provided at closing?

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#1687902 - 04/11/12 04:48 PM Re: Adding a coborrower and disclosures CaseyBoo30
bankladyrulz Offline
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Nebraska, USA
[quote=CaseyBoo30]If the lender decides at the last minute to add a person as a co-borrower (originally they were just a grantor and not on the application)on the refinancing of a consumer mortgage loan, is there a way to provide the required disclosures without delaying closing?

Just my opinion, but I think you have a couple issues here "If the Lender decides at the last mintue to add a person as a co-borrower" I think you may have an issue with REG B - a lender is not allowed to require a person to be a co-borrower.

IF the Co-Borrower wanted to be added I think you will have to delay closing & redisclose properly.
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#1687938 - 04/11/12 05:35 PM Re: Adding a coborrower and disclosures CaseyBoo30
Matt_B Offline
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A CU, Where Regs Don't Apply
Sounds like you had a loan that maybe was scheduled to close before it was approved with underwriting (internal/external) and you're trying to salvage it at the last second? If you're adding someone to the application, you're adding new debt to be considered etc. are you not? I would think you need a full re-underwrite of the file and are stuck with a delayed closing.
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#1767561 - 12/14/12 05:12 PM Re: Adding a coborrower and disclosures CaseyBoo30
Brock Offline
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Columbia, MO
I wanted to see if anyone had more clarity on this topic. So in these circumstances I agree with Matt B that someone is trying to salvage the deal and that means that the deal could not proceed without the addition of the co-borrower. Does this mean that an adverse action should be sent to the original borrower before the co-borrower is added?

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#1767565 - 12/14/12 05:16 PM Re: Adding a coborrower and disclosures CaseyBoo30
rlcarey Online
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Galveston, TX
Does this mean that an adverse action should be sent to the original borrower before the co-borrower is added?

It could represent a counter-offer and then you would have 90 days to send the AAN if the customer does not act on the counter-offer. Many banks combine any counter-offer with an AAN so they don't have to track for 90 days.
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#1767566 - 12/14/12 05:18 PM Re: Adding a coborrower and disclosures CaseyBoo30
rlcarey Online
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Galveston, TX
Caseyboo also didn't indicate why. If this was not supported by an underwriting reason, then it definitely is a REg. B issue.
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