Re: Have you signed all these forms for mortgage application? (loan officer, income tax)

[onlooker123]

1 Form 4506-T Request for Transcript of Tax Return.

2. Form SSA-89 Social Security Administration Authorization for the Social Security Administration (SSA) To Release Social Security Number (SSN) Verification

3. Borrower's Authorization and Certification (to authorize the bank to sell your employment history and income, bank, money market, and similar account balances, credit history; and copies of income tax returns to any investor that purchases the mortgage)

4. Appraisal Report Disclosure (to agree to waive receipt of a copy of the appraisal report 3 business days prior to closing in order to close the loan as scheduled.)

No. 3 sounds very scary. Do all the Mortgage banks require borrower to sign these these forms (esp. No. 3)?

Thank you very much for your response.

[Narfcake]

Since you bolded the part about the BCA ... to check, yes, that's standard.

To include the information when they resell the loan ... yes. Afterall, if you were buying that loan, wouldn't you want the client's information?

To straight up resell to anyone, no.

Reread that document to see which one it falls into ...


Now as for the other aspects ... #1 and 2 are standard. #4 ... I signed for the right to receive a copy, not to waive it.

[SmartMoney]

Yes, anyone that wants a mortgage today must sign. I have put comments by each of the forms listed.

Originally Posted by observer-379

1 Form 4506-T Request for Transcript of Tax Return. This form has always been required, but only recently execution has been required. Third parties (lenders) can only pull the transcripts for a period of 120 days from the date of signature. The 4506T is signed at the time of loan application and again at closing. Never sign this form without putting a date by your signature. Think of this form as mandatory quality control to be sure we never revisit our recent problems.

2. Form SSA-89 Social Security Administration Authorization for the Social Security Administration (SSA) To Release Social Security Number (SSN) Verification Thanks to the 9/11 bombers, the Patriot Act was passed. All banks and lending institutions are required to verify identity and social security numbers of their customers. Seriously, would you want someone to buy a home with your social?

3. Borrower's Authorization and Certification (to authorize the bank to sell your employment history and income, bank, money market, and similar account balances, credit history; and copies of income tax returns to any investor that purchases the mortgage) In the dark ages, lenders use to print out the Verification of Employment, Verification of Deposit, Verification of loan and so on and have the borrower sign each form to be sent out. Thus, the Auth and Cert was created as a one form for any verification needed. The Certification portion of the form is where you make a statement acknowledging it's a Federal crime to knowingly make false statements. You also acknowledge the bank can turn the loan documentation to a full doc package (redundant, now that stated and NINA no longer exist). The Authorization is, again, a quality control measure. In addition to letting the lender verify your information (employer and earnings, bank accounts and so on), you are authorizing the investor, insurer (including VA and FHA), or any supervisory authority to reverify and to make sure the lender didn't commit fraud. If anything, this form should give you confidence that fraud is on the decline.

4. Appraisal Report Disclosure (to agree to waive receipt of a copy of the appraisal report 3 business days prior to closing in order to close the loan as scheduled.) If your lock was about to expire and the appraisal came in the day before closing, what would you want to do? This is really a silly form anyway (and only for FHA loans, btw, the lender owns the appraisal. The borrower pays for it and gets a courtesy copy. It's not like you can pick it apart and have the appraiser answer your questions. If it's an FHA or VA loan, you don't have to accept the lower value. The purpose of the appraisal is to satisfy the lender that the collateral supports the loan requested.

No. 3 sounds very scary. Do all the Mortgage banks require borrower to sign these these forms (esp. No. 3)?

Thank you very much for your response.

It sounds like a loan officer shoved papers under your nose and told you to sign without the benefit of reading, because every one of these forms are for the most part, self explanatory. Another point to ponder, the information is only pertinent as to the status of the information at time of loan approval. At closing, you again make statements that the information is accurate. If you close and you have lost your job and haven't told the lender, you have commited loan fraud. If you have bought a car between application and closing and haven't disclosed it to the lender, you have committed loan fraud.

That said, there's nothing anyone can do the day after closing if you buy a new car or quit your job.