We have been testing our software and have discovered that when there is more than one borrower, for example...two borrowers, where one borrower is a servicemember (or dependent) and the other borrower is not, the software still prints a disclosure for each borrower. BUT....in addition to the disclosure, the software spits out a second disclosure for the non-servicemember. On the form, the non-servicemember has three signature options.
- I AM a servicemember.
- I AM a dependent of a servicemember.
- I AM NOT a servicemember or dependent of a servicemember.
And then a warning at the bottom of the form, to complete the form accurately....that knowingly making a false statement on a credit application is a crime.
What in the world is the purpose of this form? We give non-servicemember borrower the MLA disclosure and then have the non-servicemember, say yay or nay that he/she is entitled to the protections?
I know we don't need this form by law. But I am loathe to nixing it without understanding its purpose.
I would be interested in hearing ideas on this. FYI, the software is LaserPro.