Must Borrower Sign Notice to Home Loan Applicant?

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Question:

Do the borrowers have to sign the Notice to Home Loan Applicant? This is with regard to home improvement loans or second mortgages. If the bank regulators come in to audit the lender that originated the loan, will a signed copy have to be in the file?

Answer:

Answer by Randy Carey:There is no regulatory requirement for a signature.

Answer:

Answer by Lucy Griffin:Sometimes it is difficult to be sure about signatures. Basically, if a signature is required, it is so stated in the regulation. When you don't see a signature requirement (and there is none for the Notice to Home Loan Applicant) all you have to do is send it. When the lawyers or examiners ask you to prove that you sent it, show them your procedures and training, which hopefully call for sending the notice in a timely fashion.

First published on BankersOnline.com 4/26/10