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Question:
I have a customer that is refinancing his mortgage loan, he is the only borrower on my loan. Does his non-signing spouse have to sign the Closing Disclosure? I know she has to sign the mortgage and the ROR doc. Could you give me an answer for both scenarios: Spouse is on the title of the property or spouse is not on the title of the property? Or does it make a difference?Answer:
The closing disclosure is required to be provided to consumers (generally person(s) to whom credit is offered/extended). If the non-borrowing spouse has the right to rescind the transaction, then for rescission purposes she would be considered a consumer (see definition below) and would receive the RofR notice and the CD. Signatures on the CD are not required by regulation, so whether or not you require them to sign the closing disclosure is a matter of bank policy and/or the policy of any investors you work with. Many banks get signatures because they think it is the best way to show the disclosure was provided to the consumers.1026.2(11): “Consumer means a cardholder or natural person to whom consumer credit is offered or extended. However, for purposes of rescission under §§ 1026.15 and 1026.23, the term also includes a natural person in whose principal dwelling a security interest is or will be retained or acquired, if that person’s ownership interest in the dwelling is or will be subject to the security interest. For purposes of §§ 1026.20(c) through (e), 1026.36(c), 1026.39, and 1026.41, the term includes a confirmed successor in interest.”
Note: From the general disclosure requirements, Comment 1026.17(d)-2:
“Multiple consumers. When two consumers are joint obligors with primary liability on an obligation, the disclosures may be given to either one of them. If one consumer is merely a surety or guarantor, the disclosures must be given to the principal debtor. In rescindable transactions, however, separate disclosures must be given to each consumer who has the right to rescind under § 1026.23, although the disclosures required under § 1026.19(b) need only be provided to the consumer who expresses an interest in a variable-rate loan program. When two consumers are joint obligors with primary liability on an obligation, the early disclosures required by § 1026.19(a), (e), or (g), as applicable, may be provided to any one of them. In rescindable transactions, the disclosures required by § 1026.19(f) must be given separately to each consumer who has the right to rescind under § 1026.23. In transactions that are not rescindable, the disclosures required by § 1026.19(f) may be provided to any consumer with primary liability on the obligation. See §§ 1026.2(a)(11), 1026.17(b), 1026.19(a), 1026.19(f), and 1026.23(b).”
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