A handful of states generally require certain notices (usually containing prescribed text) to be provided to “co-signers, co-makers, guarantors, endorsers, sureties, or similar parties” (the documents we provide for these requirements are listed in parentheses):
- Cal. Civ. Code §§ 1799.91 & 1799.92 (Cx886)
- Colo. Rev. Stat. Ann. § 5-3-105 (Cx994)
- Iowa Code Ann. § 537.3208 (Cx1022)
- Me. Rev. Stat. Ann. tit. 9-A, § 3-206 (Cx1020)
- Neb. Rev. Stat. Ann. § 45-1053 (Cx13029)
- N.Y. Gen. Oblig. Law § 15-702(3) (Cx12871)
- S.C. Code Ann. § 37-3-303 (Cx1017)
- W.Va. Code Ann. § 46A-2-104 (Cx1018)
While in some of these states the definition of a “co-signer” or “co-maker” are defined to include only those individuals who are signatories of a loan, but who do not receive the proceeds of such (such as Colorado), there are some states which do not define these terms (such as South Carolina), leaving to interpretation as to whether “co-maker” means only cosigners or also coborrowers.
Upon a review of the laws in these states, we have decided take a more liberal approach and consider “co-maker” to mean the equivalent of cosigners (particularly since all the states which do define the term limit it to cosigners).
Due to this decision, we will be modifying the configurations for the notices in Maine, Nebraska, New York, and South Carolina so that, rather than printing when the “Multiple Borrowers Indicator” equals “Yes”, they will print when “Has Co-Signer On Loan” equals “Yes.”
In addition, the signatures in each of these documents will be modified so that they reflect only the cosigners’ signatures, rather than the ones of any borrowers or coborrowers.
The following additional edits will be made:
1) On Cx1017, the “Kind of Debt” part of the “Identification of Debt You May Have to Pay” section will print the hard-coded text “Mortgage loan secured by the above premises.” The other parts of this section will pull the following fields:
- “Name of Debtor” = dt_BorrowerListInlineNoBorders/@v
- “Name of Creditor” = dt_LenderNameandExt/@v
- “Date” = dt_EstClosingDate/@v
2) Cx13029 will be changed to more closely match the model form published on the Nebraska Department of Banking and Finance website (http://www.ndbf.ne.gov/loan/clforms.shtml). The one exception is that we will be replacing the blank lines on the document with the same information displayed in the “Identification of Debt You May Have To Pay” sections on Cx1017 and Cx12871. In addition, a copy of this document will print per co-signer, with the name of the co-signer printing in the acknowledgment section.
These changes will take effect on June 11, 2014. If you have any questions or concerns about these changes please contact Client Support at 1.800.497.3584.
June 4, 2014