I received the following message and question this morning from one of our mortgage loan originators:
I have a conventional purchase loan that was originally proposed with a non-occupying co-signer.
The co-signers are on a separate 1003 Application and were sent their own set of disclosures.
The co-signer was being used to provide additional income since the occupying borrowers had not yet sold their current home. Their current home is now under contract(not closing until Sept. 15th) and the occupying borrowers have sufficient reserves to allow us to remove the non-occupying co-signers.
I would like to remove the co-signers and show their application as “withdrawn”. The loan is scheduled to close on Tuesday the 16th.
Can we remove the co-signer and close on time or is there a reason we would be required to start a whole new application and wait periods?

Additional details regarding the application:
The application of the primary applicant/ occupant would not change at all.
There would be no change to any of the terms disclosed in the original disclosures.
The co-signers were never going to be in title and were not on the purchase contract.
The co-signers would merely provide a letter expressing their desire to withdraw from their application.

Can we just have the co-signers withdraw and close as scheduled tomorrow (8/16/2016), or do they need to have a new application processed?

totally up to you and your bank processes.
There's no requirement to start over ever, at least none that I recall reading.
The borrower is counter-offering you to remove the co-signer.
You are accepting.
It's not changing any of the three items that require a new CD to be done so I think you can just take the co-signer off and close as scheduled.

If I'm off base, I'm certain someone will chime in and let us both know.

Thanks Truffle Royale!