Scenario: Mother and Son apply for a refinance - Mother is separated from husband (not sure if legal separation at this point). Husband quit claimed property to spouse and IS NOT ON TITLE. I want to confirm what I believe is correct: Husband and Son WOULD NOT have to sign ROR as they are not on title. I am not sure about husband's waiver of homestead rights on mortgage - what if they are legally separated??? What should be done? Separately, I was told by the Underwriter they have in the past had the spouse (even thought not part of the transaction) sign the TILA. This does not make sense since spouse is not part of loan and TILA does not need to be signed (see appendix H of Reg. Z). Please confirm my thoughts - Thanks.

I agree with you're thoughts. The (ex)Husband is no longer a owner of the property and therefore does not have ROR rights, nor is he any part of the loan, therefore why would he be entitled to even see the TIL? As for the "waiver of homestead rights", if he no longer owns the property why would he still have those rights? Probably need to check your state laws on that one.

I agree with Dan. Only borrowers sign the TIL.

I agree the husband does not have to sign the TIL. Your question id not mention the ROR. The husband also would not be entitled to the ROR. As to the son, Reg Z indicates there should be an ownership interest to be entitled to the ROR. However the TILA Section 125 is worded slightly different and appears to indicate that the son would be entitled to the ROR if it is his principal dwelling and he is an obligor.

I always train according to TILA - reasoning that if we're sued, it will be under TILA, not Reg Z. If the son lives there, and is signing the note - I'd recommend giving him the ROR.

I'm assuming that you are willing to release the husband from the loan? Too often, customers (and bankers!) think that because they quit claimed the property, or the divorce settlement says so - that they no longer have any obligation under our note. Not true!!