We are processing a mortgage loan in which the home is owned jointly between the spouses. The loan is only in the husband’s name. I know the wife will have to sign the Mortgage and the Right of Rescission but, is there any early documents the wife will have to sign in addition to these documents?
I’m assuming this loan isn’t for the purchase or construction of their principle dwelling. If this is correct, you’re right; the non-borrower spouse who has ownership in the property to be taken as collateral will have to sign the security instrument and will, along with the borrower, have the right of rescind if the collateral is their principle dwelling. However, if she has not applied for the loan she will not receive, nor need to sign, the early disclosures.
Since this post I have come across information (preamble from HPML final rules) that indicates that early disclosures are now being considered material disclosures and should be given to non-borrowers who have the right to cancel. Going forward, I recommend giving the early TIL, as well as the final TIL, to all individuals with the right to cancel.