Hi, I haven’t posted in a while, I hope everyone is doing good, I want to know if anyone is having a problem with the part where each one initials when it’s 2 borrowers, I have some companies making them both initial in the same spot and others just initial on their own spot. When those forms first came out one of the title companies made me take a small class and each borrower initials their own spot, but now other companies are having them initial together each spot, anyone having the same problem?
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Each lender varies on their instructions.
The 2021 updated 1003 had instructions that each borrower initials their own section of the app in on a joint application. If there is a non-borrowing spouse, they are not supposed to initial it at all.
However, different lenders have different and inconsistent rule. I’ve seen some instructions to have the signing spouse initial even if they are the only borrower. I know it is non-compliant but I follow what they tell me.
I have not had instructions since the update 2 years ago that both borrowers are to initial in the same section but I wouldn’t be surprised it it happened.
I just experienced initial question with lenders out of MO & PA and I’m in WA. Multistate signing with CA & WA. I received signing pkg via FedEx after CA Notary completed her portion of signing. Documents were a mess and spent some time putting this 4 inch pkg in order. There was a special notary assist sheet in pkg stating to have initials applied on Loan Application docs. CA Notary did not have anyone initial. I had WA signer initial docs. I have always had signers initial in box 1a. Interesting to see how CA Notary processed docs. Her hand writing was terrible and could not read Jurat or Acknowledgement and her notary stamp expires in 2 days. Know I’m being critical but I take more pride in my work and would never forward a pkg with pages not grouped together such as Deed of Trust.
I agree all Title companies are different… what I’ve found that works:
Single Signer for credit… they initial by their name.
Joint Credit: person who’s name is above the “2” initials on the line; the other initials under their name just to the right. And visa versa in Section One for the 2nd signer.
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There are clear instructions from Fanny May about this Loan Application. And when somebody gives instructions to initial it no matter what, they are wrong.
INITIALS: This field only applies if there is more than one borrower applying for the mortgage
loan. Each borrower initials their own Section 1a
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