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The Non Borrower Credit Authorization form plays a crucial role in the mortgage modification process for households where not all income contributors are listed on the loan agreement. When a borrower or co-borrower discloses income from a household member who is not on the promissory note, this form must be completed to facilitate the evaluation of the mortgage loan. A non-borrower is defined as someone who lives in the home and contributes to the overall household income but is not legally responsible for the mortgage. Each non-borrower must sign the form, which includes their consent to allow the lender to access their credit report. This step is essential for the lender to assess the financial situation accurately. The form also emphasizes that additional documentation may be necessary, especially if there are multiple non-borrowers contributing to the household income. By signing the Non Borrower Credit Authorization form, the non-borrower acknowledges their role in the household's financial landscape and grants permission for a thorough review of their credit history, ensuring a comprehensive evaluation of the loan modification request.

Non Borrower Credit Authorization Example

To Be Completed if a Borrower/Co-Borrower Discloses Income From a

Household Member Who is Not on the Promissory Note

LOAN #: ____________________

Your Hardship Affidavit /Request for Modification or Uniform Borrower Assistance Form indicates that a non- borrower contributes to your total household income. For our purposes, a “non-borrower” is an individual who resides in your home and contributes to the household income but is not personally obligated on your mortgage loan. As part of the evaluation process, a Credit Authorization Form must be completed and signed by each non-borrower.

Note: Updated or additional documents may be required. Copies of this form may be used if you have more than one non-borrower contributing to your total household income.

Please have the non-borrower fully execute the below NON-BORROWER CREDIT AUTHORIZATION FORM.

NON-BORROWER CREDIT AUTHORIZATION FORM TO OBTAIN CONSUMER CREDIT REPORT

The undersigned non-borrower certifies the following:

1.I am an occupant of _________________________________________________________(the “Property”);

PROPERTY ADDRESS

2.I contribute to the total household income of the Property;

3.I understand and acknowledge that ___________________ is evaluating the mortgage loan that is secured by the Property for a loan modification.

4.I hereby authorize ___________________, or its designated agent, to obtain and review a consumer credit report containing my credit history and other non-public information as part of its evaluation process.

This Authorization shall constitute the undersigned’s agreement to allow ___________________ to obtain a

copy of a consumer credit report in the manner permitted by the Fair Credit Reporting Act.

_____________________________________

________________________________________

NAME (Non-Borrower)

SIGNATURE (Non-Borrower)

_____________________________________

________________________________________

RELATIONSHIP TO BORROWER

DATE

NON-BORROWER SOCIAL SECURITY NUMBER: _______-______-_______

Click for Non Borrower Credit Authorization File

File Breakdown

Fact Name Description
Purpose The Non Borrower Credit Authorization form is used to authorize the evaluation of a non-borrower’s credit history when they contribute to a household’s income.
Who Should Complete It This form must be completed by any household member who is not listed on the mortgage but contributes financially.
Legal Compliance This form complies with the Fair Credit Reporting Act, ensuring that non-borrowers' credit information is obtained legally.
State-Specific Laws For states like California, the form is governed by the California Civil Code §1785, which regulates consumer credit reporting.

Guide to Using Non Borrower Credit Authorization

Completing the Non Borrower Credit Authorization form is an important step when a non-borrower contributes to the household income. This form allows the lender to obtain a credit report for the non-borrower, which is necessary for evaluating the mortgage loan modification. Follow the steps below to fill out the form accurately.

  1. Locate the section labeled LOAN # at the top of the form and enter the loan number associated with the mortgage.
  2. In the PROPERTY ADDRESS field, provide the complete address of the property where the non-borrower resides.
  3. In the first certification statement, the non-borrower should confirm their occupancy of the property by filling in their name in the blank space provided.
  4. In the second certification statement, the non-borrower should acknowledge their contribution to the household income.
  5. For the third certification statement, the non-borrower should recognize that the lender is evaluating the mortgage loan for modification. Fill in the lender's name in the blank space.
  6. In the fourth certification statement, the non-borrower must authorize the lender or its agent to obtain their consumer credit report. Fill in the lender's name in the blank space again.
  7. At the bottom of the form, the non-borrower must print their name and sign the document in the designated areas.
  8. Indicate the relationship to the borrower in the appropriate space.
  9. Finally, enter the non-borrower’s social security number in the format provided (XXX-XX-XXXX).

Get Answers on Non Borrower Credit Authorization

What is the purpose of the Non Borrower Credit Authorization form?

The Non Borrower Credit Authorization form is used to gather information about individuals who live in your home and contribute to your household income but are not listed on the mortgage. This form allows the lender to obtain a credit report for these non-borrowers, which is necessary for evaluating your mortgage loan modification request.

Who needs to complete the Non Borrower Credit Authorization form?

Any non-borrower who contributes to your household income must complete this form. If multiple non-borrowers reside in your home and contribute financially, each one will need to fill out a separate form. This ensures that the lender has a complete understanding of your household's financial situation.

What information is required on the form?

The form requires the following information:

  1. The property address where the non-borrower resides.
  2. A declaration that the non-borrower contributes to the household income.
  3. Understanding that the lender is evaluating the mortgage loan for modification.
  4. Authorization for the lender to obtain and review the non-borrower's credit report.

Additionally, the non-borrower must provide their name, signature, relationship to the borrower, and social security number.

What happens after the form is submitted?

Once the Non Borrower Credit Authorization form is completed and submitted, the lender will use the information to assess the financial situation of the household. They will obtain the non-borrower's credit report as part of the evaluation process. Be aware that additional documents may be requested during this time.

Is there a deadline for submitting the Non Borrower Credit Authorization form?

While specific deadlines may vary based on the lender's policies, it is important to submit the form as soon as possible. Timely submission can help expedite the evaluation of your mortgage loan modification request. Check with your lender for any specific timelines they may have in place.

Common mistakes

Filling out the Non Borrower Credit Authorization form is a crucial step in the loan modification process, yet many individuals make common mistakes that can hinder their applications. One frequent error occurs when the property address is not clearly written. It is essential to provide the complete and accurate address of the property in question. Omitting or miswriting even a single character can lead to confusion and delays in processing the application.

Another mistake involves the failure to fully complete the section regarding the non-borrower’s relationship to the borrower. This part of the form helps the lender understand the context of the financial arrangement. Leaving this section blank or providing vague descriptions can raise questions about the legitimacy of the income contribution. Clear and precise information is vital for a thorough evaluation.

Many individuals also overlook the importance of the signature. The form requires the non-borrower to sign it, indicating their consent to the credit report review. If the signature is missing or not dated, the form may be considered incomplete, leading to further complications. Ensuring that all required signatures are present is a simple yet critical step.

Additionally, some non-borrowers fail to provide their Social Security number. This information is necessary for the lender to obtain a credit report. Not including this detail can result in the inability to process the authorization effectively. It is advisable to double-check that this sensitive information is accurately filled out to avoid any unnecessary delays.

Another common oversight is the misunderstanding of the authorization's purpose. Some non-borrowers may not fully grasp that they are allowing the lender to access their credit history. This lack of understanding can lead to hesitation or refusal to sign the form. It is important for non-borrowers to recognize that this step is standard practice in the evaluation process and is intended to facilitate a fair assessment.

Lastly, individuals sometimes neglect to keep a copy of the completed form for their records. Retaining a copy can be beneficial for future reference or in case any issues arise during the processing of the application. It is always wise to have documentation on hand to clarify any discrepancies that may occur later in the process.

Documents used along the form

When dealing with mortgage modifications and household income evaluations, several forms and documents work alongside the Non Borrower Credit Authorization form. Each of these documents plays a crucial role in the overall process, ensuring that all necessary information is collected and assessed. Here’s a look at some of the key forms you might encounter:

  • Hardship Affidavit: This document outlines the borrower's financial difficulties and the reasons for seeking a loan modification. It provides context for the request and helps lenders understand the borrower's situation.
  • Uniform Borrower Assistance Form: This standardized form collects essential information about the borrower's financial status, including income, expenses, and any other relevant details that impact their ability to repay the loan.
  • Loan Modification Application: This application is submitted to formally request changes to the terms of the existing mortgage. It typically requires detailed financial information and may include supporting documentation.
  • Income Verification Documents: These can include pay stubs, tax returns, and bank statements. They provide proof of income for both the borrower and any non-borrowers contributing to the household income.
  • Authorization to Release Information: This form grants permission for the lender to obtain necessary information from third parties, such as employers or financial institutions, to verify the borrower's and non-borrower's financial details.

Understanding these documents is essential for anyone involved in the loan modification process. Each form serves a specific purpose, ensuring that lenders have a comprehensive view of the borrower's financial situation and the contributions of non-borrowers. This collective information aids in making informed decisions regarding loan modifications.

Similar forms

The Non Borrower Credit Authorization form is similar to several other documents that serve to gather necessary information for financial evaluations. Here are seven documents that share similarities:

  • Credit Authorization Form: Like the Non Borrower Credit Authorization, this form allows lenders to access a borrower's credit history to assess their creditworthiness.
  • Loan Application: This document collects personal and financial information from borrowers, similar to how the Non Borrower Credit Authorization gathers details about non-borrowers contributing to household income.
  • Income Verification Form: This form verifies the income of all individuals in a household, paralleling the purpose of the Non Borrower Credit Authorization in confirming contributions from non-borrowers.
  • Hardship Affidavit: Often used in loan modification requests, this document outlines a borrower's financial difficulties, much like how the Non Borrower Credit Authorization addresses income contributions from non-borrowers.
  • Borrower Assistance Form: This form helps lenders understand the overall financial situation of a household, similar to how the Non Borrower Credit Authorization evaluates the contributions of non-borrowers.
  • Authorization to Release Information: This document allows third parties to access personal information, akin to the consent given in the Non Borrower Credit Authorization for credit report access.
  • Consumer Credit Report Request: This request is made to obtain credit histories, just as the Non Borrower Credit Authorization permits lenders to access a non-borrower's credit report.

Dos and Don'ts

When filling out the Non Borrower Credit Authorization form, it is important to follow specific guidelines to ensure accuracy and compliance. Here are ten things you should and shouldn't do:

  • Do provide accurate property address information.
  • Do clearly state your relationship to the borrower.
  • Do sign and date the form where indicated.
  • Do ensure all required fields are completed.
  • Do read the entire form carefully before signing.
  • Don't leave any sections blank unless instructed.
  • Don't provide false information about your income or residency.
  • Don't forget to include your Social Security number.
  • Don't submit the form without reviewing it for errors.
  • Don't assume additional documents won’t be required; check for updates.

Misconceptions

Understanding the Non Borrower Credit Authorization form is crucial for anyone navigating the mortgage modification process. However, several misconceptions often arise. Here are five common misunderstandings:

  • Misconception 1: The Non Borrower Credit Authorization form is only for borrowers.

    • This is not accurate. The form is specifically designed for non-borrowers—individuals who live in the home and contribute to the household income but are not responsible for the mortgage. Their financial information is necessary for evaluating the loan modification.

  • Misconception 2: Only one Non Borrower Credit Authorization form is needed, regardless of the number of non-borrowers.

    • This is incorrect. If there are multiple non-borrowers contributing to the household income, each one must complete and sign their own form. This ensures that all relevant financial information is taken into account.

  • Misconception 3: Signing the form gives the lender unrestricted access to all personal financial information.

    • In reality, the authorization is limited. It allows the lender to obtain a consumer credit report specifically for evaluating the mortgage loan. The process adheres to the Fair Credit Reporting Act, which protects consumer privacy.

  • Misconception 4: Completing the form guarantees approval for a loan modification.

    • This is misleading. While the form is a necessary step in the evaluation process, it does not guarantee that the loan modification will be approved. The lender will consider various factors, including the overall financial situation of the borrower and non-borrowers.

  • Misconception 5: Non-borrowers do not need to provide any personal information.

    • This is false. Non-borrowers must provide their name, relationship to the borrower, and Social Security number on the form. This information is essential for the lender to assess the contribution of the non-borrower to the household income.

Key takeaways

Filling out the Non-Borrower Credit Authorization form is a crucial step for households seeking loan modifications when non-borrowers contribute to the total household income. Here are some key takeaways to consider:

  • Understand the Definition of a Non-Borrower: A non-borrower is someone who lives in your home and contributes to household income but is not responsible for the mortgage loan.
  • Complete the Form Accurately: Ensure that all required information, including the property address and the non-borrower's relationship to the borrower, is filled out correctly.
  • Multiple Non-Borrowers: If there are several non-borrowers contributing to the household income, you can use copies of the form for each individual.
  • Signatures Are Essential: Each non-borrower must sign the form to authorize the lender to access their credit report as part of the evaluation process.
  • Stay Informed About Additional Requirements: Be prepared for the possibility that updated or additional documentation may be needed during the evaluation process.
  • Know Your Rights: The authorization allows the lender to obtain a credit report in compliance with the Fair Credit Reporting Act, ensuring that your information is handled properly.

By keeping these points in mind, you can navigate the process more effectively and ensure that all necessary steps are taken for a successful loan modification evaluation.