That there is a table that can be used for your refernece that outlines the requirements when a non-borrowing vested individual who has the right to rescind (typically the spouse) must receive the initial CD 3 specific business days prior to consummation:
* If the property is located within a community property state then the non-borrowing individual must receive the initial CD regardless if they are taking title to the property.
Further examples of different borrower and non-borrower scenarios:
- Example 1: The loan has three full borrowers: husband, wife and mother.
- Refinance: All borrowers (including anyone only on title) must receive the CD separately.
- Purchase: Only one of these borrowers must receive the CD.
- Example 2: The loan has a borrower and co-signer: son and mother.
- Refinance: The co-signer/mother does not have a right to rescind, so only the borrower/son must receive the CD.
- Purchase: The co-signer/mother receiving the CD does not satisfy the rule; the actual borrower/son must receive the CD.
- Example 3: The loan has a borrower and title-only: wife and husband.
- Refinance: Both the borrower/wife and title-only/husband must receive the CD separately since both have a right to rescind.
- Purchase: The title-only/husband receiving the CD does not satisfy the rule; the actual borrower/wife must receive the CD.
Please refer to our program guidelines for complete details.