While not a legally required document, many lenders have borrowers sign an “Occupancy Statement,” in which the borrowers certify, under penalties of perjury, their intended use of the subject property, whether as a principal dwelling, a second home, or as an investment property. This is done to add more legal leverage for situations where a borrower lies about the intended purpose of a loan, which is underwritten based on such false premises.
Currently, signature lines are appearing for borrowers, non-purchasing entities, and cosigners. Upon a review of the document, we have decided to remove the signatures of cosigners by default, since their interest in the transaction is primarily to help the borrowers qualify for the loan, rather than to use the subject property in any of the ways described in the Statement. Signature lines will still continue to appear for both borrowers and non-purchasing entities.
This change is effective immediately. If you have any questions or concerns about these changes please contact Client Support at 1.800.497.3584.
September 13, 2013