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#2253806 - 05/12/21 03:51 PM Non-Vested Spouse
Monica-in-TX Offline
Junior Member
Joined: Jul 2013
Posts: 29
Hi, y'all. We have a customer who is purchasing a homestead: his wife is not on the purchase contract, she will not be vested on the title, and the borrower does not want the home to be part of community property. We are finding out about the community property and vesting today, although we knew she wasn't on the purchase contract. We sent out the pre-lim CD with a place for her to sign but she was not considered to be a borrower. Today, the day of closing, the borrower wants her removed from everything. Our doc prep department wants to be sure they don't need to send a new pre-lim CD with the spouse removed. However, everything I've read says that since she is not and has never been considered a "borrower", we can remove her from everything and just close the loan with her not signing anything. That there is no reason to send a "new" CD since she was never part of the loan anyway? The title company has already agreed to vest the property how the borrower wants.

Do we need to send another CD prior to closing? Wait a day to close then? Or can we use the final CD to remove her?

Thank you!
Monica

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#2253811 - 05/12/21 04:27 PM Re: Non-Vested Spouse Monica-in-TX
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,220
Galveston, TX
On a portfolio loan, just take her off. If this is being sold in the secondary - check with your investor. I would also review your procedures as to why she was placed on the disclosures in the first place?
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#2253814 - 05/12/21 04:33 PM Re: Non-Vested Spouse rlcarey
Monica-in-TX Offline
Junior Member
Joined: Jul 2013
Posts: 29
Yes, it's just a portfolio loan, no investor. And yes, we'll look into our procedures.

Thank you!
MO

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