Disclosures To Mortgage Cosigners?

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Question:

I am doing a loan for a purchase of primary residence. The loan and note are in Mr. X's name. Mrs. X will be signing on the mortgage only. Do they both get preliminary disclosures?

Answer:

Since this would not be a loan subject to a right of rescission, the nonapplicant/nonobligor spouse is not entitled to TiL disclosures.

If this were a transaction subject to the ROR, the nonobligor spouse would be entitled to a copy of the "material disclosures" under TIL, but not to the advance TiL disclosure per se.

First published on BankersOnline.com 08/18/03