Co-Borrowers, GFEs, and Signing the HUD-1

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Question:

Does a co-signer get a copy of GFE and are they listed on the HUD1 as a borrower? Do all borrowers have to sign the HUD1?

Answer:

Answer by David Dickinson: A co-signer is a borrower. All borrowers should receive all disclosures and they should be listed on all disclosures, however, they don't need to receive their own copy. you can provide one disclosure with all borrowers (including the cosigner) listed. Technically, no one has to sign the HUD-1/1A, but typically all borrowers do sign these disclosures.

Answer:

Answer by Dan Persfull: The following is from the U.S. Department of Housing and Urban Development's Response to Questions from the Massachusetts Bankers Association.

Question: Is a person who is cosigning or guaranteeing a note (not the borrower) required to be listed on the HUD-1?

Answer: As per the instructions for filling out the settlement statement (24 C.F.R. 3500, Appendix A, Instructions for Completing HUD-1 and HUD-1A Settlement Statements [hereinafter "Instructions"]), where there is more than one borrower, the name and address of each borrower is required to be listed. Where two or more individuals are joint obligors with primary responsibility on an obligation (cosigners), they must all be listed as borrowers on the settlement statement. Guarantors, on the other hand, are not primary obligors and are not required to be listed on the settlement statement.

First published on BankersOnline.com 10/17/2005