I am going round and round with my LOS regarding the vesting information carrying over to the signature lines on the CD in a NON Rescindable transaction. The NON Borrower (non consumer) name is printing on the CD and there is no way to turn it off. I am trying to find the language in the regulations to support the need to stop this from happening but cannot find what I need in the new e-regulations format. Any help would be appreciated. I fear having it look as if we are requiring a spousal signature unnecessarily for lien perfection in a purchase transaction.

The only requirement if you choose to put a signature on a CD is that it have the line “By signing, you are only confirming that you have received this form. You do not have to accept this loan because you have signed or received this form.”

Not sure why a LOS would place individuals on the LE/CD for signatures, if they are neither a borrower nor have the right of rescission. We don't.

Is the non-borrower on title or have spousal rights in your state?
If so, then it's common, at least in my world of secondary marketing, for the non-borrowing spouse or non-borrowing co-owner to have to sign the mortgage and the CD

I am going to continue to try to get the LOS to understand. It seems with the privacy concerns in TRID that having someone without rescission rights sign would not be a good idea. And again, having a spouse sign unnecessarily does not sit right with me. The investor requires the borrower signature so we cannot just eliminate the signature line. The only work around is to produce and deliver the CD prior to adding the additional vesting information for the mortgage. I fear this will lead to the settlement agent overlooking the document all together. Just not a good situation.

I don't understand. What "additional vesting information for the mortgage" are you adding?

As for giving the non-borrowing spouse/owner a copy of the CD, read this.

The additional owners name as titled. There is not a way to add it to the "vesting" screen without having it carry over to the CD.

That's because your system recognizes that the non-borrowing owner must get a copy of the CD and somewhere in your system you have it set up that the CD must be signed by the receipients.

Oh, and there's no privacy rights violation here. Quite the opposite. A co-owner or non-borrowing spouse has the right to know about a lien being put on their property.

My understanding was that the NON borrower only receives the CD on a rescindable transaction based on the definition of a consumer. Am I incorrect?

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).

^That is exactly what I sent the LOS.

We're having this issue this morning. The scenario is that I have a single borrower (father) and two non-borrower owners (sons). The collateral property is the father's primary residence but the two sons do not live there. Our LOS is putting both of the sons on the CD as well as generating ROR for them and I cannot find a way to make it stop.

Becca....i faced this last week, and i know you and i have same LOS......as for the ROR, i think you'll just have to tell the processor not to print those notices that don't apply. As for getting the names off the CD...my processor thought she could, but i've been busy and don't know if she actually was able to.

If you require any signatures on the CD as evidence of delivery, then your LOS is going to put all the required signatures on the CD. For a refinance with multiple owners, all owners must get a copy, therefore the LOS is going to require signatures from all of them. I really don't understand why y'all think that is wrong. fwiw, I agree that printing ROR for non-occupying owners is wrong.

Consumer. To be a consumer within the meaning of 1026.2, that person must at least have ownership interest in the dwelling that is encumbered by the creditor's security interest, although that person need not be a signatory to the credit agreement. For example, if only one spouse signs a credit contract, the other spouse is a consumer if the ownership interest of that spouse is subject to the security interest.

Your system will not typically recognize who actually owns and occupies the property as their primary and will overkill
ROR at times...no worries, you know who does and who does not need it.

As far as all owners getting a copy, that is not correct. Perhaps the secondary market requires it? Only one borrower is required to receive a copy outside of ROR requirements and typically all borrowers will sign it at closing [if you require it]

For quite a long time, my LOS was putting {non-borrower] ROR parties on the CD but has recently corrected that issue.

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The owner vs ROR issue is what I was having heartburn over. They only get a CD copy if they are a borrower or have ROR, therefore the two sons didn't need to sign it. We finally ended up having to take them out of the loan transaction entirely to print a correct CD.

Vendors should be correcting those mistakes as they wake up to the fact that the regulation now says that on the CloD, only "persons to whom credit is offered or extended" are named on page one, even if you have to provide copies to non-borrowers with rescission rights.

Comment 38(a)(4)-4.

Our LOS also prints title only borrowers on the CD, we get blow back on occasion from an attorney, but there is no way to not have them pull on it.

Our LOS also prints title only borrowers on the CD

What does this mean - for signatures? and what is a title-only borrower?

We have a second lien on a second home, home improvement HE with the husband and wife on deed but only husband as borrower. Our LOS will not add the wife to the CD. In researching, I believe it is because it is a non-rescindable transaction is that correct?

That would be correct. She is neither a borrower nor does she have the right of rescission (unless granted by State law).

Thank you