What is the best course of action if is co-borrower appears on a closing disclosure, but there is no other reference in the loan packet?

Application (marked individual credit), Loan Estimate, sales contract, disclosures, everything state one borrower but then at pre-closing review it is discovered that spouse is now on the closing disclosure. In looking back there was a joint credit report pulled, but there is no other reference to said spouse.

Looking for the best way to clean this up, although I don't think there is a way to do so.

Ideas?

If the 'co-borrower' is a title holder, they'd have to sign off on the mortgage.
There may be something in the mapping on your LOS that caused adding the non-borrowing title holder to the CloD as a co-borrower.

Could there be a "Right-of-Rescission" required by the non-borrowing spouse?

OP said there was a sales contract so no RoR on this one. But FNMA would require title holder to sign off on mortgage and final TIL which is now on the CloD. Hopefully, Owlman can confirm my suspicion.

Sales contract to purchase land only, no dwelling. Hadn't thought about the system pulling in as co-borrower since they will both have to sign the mortgage. So since the final TIL is on the Clod it is alright to have her listed as co-borrower and sign?

Also I think there may be an issue with having pulled credit on the "co-borrower" since she was not on the application and there is no joint intent.

"Spouse is now on the Closing Disclosure..."

If you are using ComplianceOne Mortgage, the LOS now lists the non-borrowing owner as a "Borrower" on the CloD.

Thank you all for your insight.