Are all contract signers listed on 1004?

[DRM]

If two buyers are listed in contract and both signed contract, do they both have to be listed in the 1004 as borrowers?
I have two buyers listed on the contract and both signed the contract. The lender wants me to remove one of them on the 1004 list of borrowers. Can I do that?

Thanks,
Dan

 

[Elliott]

As part of the requirement of reviewing the contract, it would seem there should be an explanation why there would be a change. I'd ask 'why' and include the explanation as part of your review. There could be a half dozen 'good' reasons and two or three 'bad' reasons.

 

[Mark K]

The number of buyers and the number of borrowers does not have to be the same. They may want 2,3,4 or more names on the deed but only one person is borrowing.

No big deal. But, the appraisal assignment should list the individual 'borrowers'. What does your appraisal assignment/request indicate?

A couple of instances of which I'm aware were due to one of the buyers having bad credit or recently declared bankruptcy and the lender would allow only the other individual on the mortgage.

 

[Dublin ohio]

If two buyers are listed in contract and both signed contract, do they both have to be listed in the 1004 as borrowers?
I have two buyers listed on the contract and both signed the contract. The lender wants me to remove one of them on the 1004 list of borrowers. Can I do that?

Thanks,
Dan

What did your LOE state. Mine always state the borrower's name

 

[chad hampton]

I only list the borrowers names that are listed on the engagement letter. If there’s other signers on a contract, I just mention it in the report. And I’m not even sure that’s necessary, the client can read the contract to.

 

[alebrewer]

If I notice signees on a contract that aren't listed as borrowers, I just include that in my contract analysis.

 

[J Grant]

If two buyers are listed in contract and both signed contract, do they both have to be listed in the 1004 as borrowers?
I have two buyers listed on the contract and both signed the contract. The lender wants me to remove one of them on the 1004 list of borrowers. Can I do that?

Thanks,
Dan

It's possible that the borrower who applies for the loan using their income and credit is only one of them. Sometimes, one party has no income or bad credit or debts.

When the lender specifies just one name as a borrower, that is the name I put as the borrower. Then, in the contract section, I commented that there are two names on the sale contract, and I provided the names.

 

[Tom D]

borrower not on the agreement of sale is not in any part owner in the property. name on the agreement, but not on mortgage is an owner, but not liable for the loan.
usually a parent, maybe kid's credit is bad. bad credit borrower is not put on mortage. more punishment for your badness.
lenders have this down solid, don't over think on what names they give you.
if you want to be anal right, listen to grant. i just go with the flow.

 

[Tom4value]

Look at the URAR. It says, “borrowers”. Many times there are owners on title but not the note. The contract says who the owners are going to be. It may not be who is on the loan so always go with what the lender says. There have been times where only one borrower is listed on the order and for whatever reason, the lender found they needed a co-borrower added later and I have to revise the report to add another borrower. Perfectly fine as the client hasn’t changed (triggering a new assignment).

 

[Dublin ohio]

Look at the URAR. It says, “borrowers”

Your software must be different than mine and the Fannie sample on their website. They both say borrower