The lender requires that the applicant sign the loan package at closing. The fact that the applicant was not living in the US is not related to getting the loan.
If I have to drive across town - you don't put my gasoline costs on the LE.
The transaction is not even covered under Regulation Z to begin with if he is not a citizen or resident of the US.
1. Foreign applicability. Regulation Z applies to all persons (including branches of foreign banks and sellers located in the United States) that extend consumer credit to residents (including resident aliens) of any state as defined in §1026.2.
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