While not a legally required document, many lenders have borrowers sign an “Occupancy Statement” (our Cx15), 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 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 then underwritten based on such false premises.
Upon review of this document, we have decided to remove the signature lines for non-occupying co-borrowers, but only for the cases in which a non-cosigning non-occupying co-borrower is on a loan where the property is intended to be used as the primary residence (i.e., other co-borrowers do intend to occupy the property). Cx15 currently does not allow co-signers to sign the Occupancy Statement; in order to also avoid problems for the non-occupying co-borrower in signing a false statement under penalty of perjury, we are removing the signature lines for non-occupying co-borrowers.
In connection with this, we have also decided to remove the names of the non-occupying co-borrowers from the notarization paragraph, since they will not be occupying the subject property.
This change will be effective on October 10, 2014. If you have any questions or concerns about these changes please contact Client Support at 1.800.497.3584.
October 3, 2014