[Sandy]

We are doing a construction loan with only a husband’s name on the TRID loan. The wife is on the deed but will not be on the loan. They live on the property in a garage that has been converted to livable space while they are constructing the home therefore right of rescission applies. Within our loan software, Laser Pro, it is adding a signature line for the wife on the closing disclosure even though she is not on the loan. We practice having the closure to be signed. Would a grantor, the wife, need to sign the closing disclosure?

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[Brent V]

In a rescindable transaction, all of those who have an ownership interest in the property have the right to rescind. So, even though the wife is not an applicant, she has the right to rescind. Regulation Z also states that each person who has the right to rescind must receive a copy of the material disclosures, which are included in the TRID disclosure. I assume Laser Pro is requiring the wife’s signature as an acknowledgement of receipt of a copy of the disclosure.

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