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The Non Borrower Credit Authorization form plays a crucial role in the mortgage loan modification process, particularly when a borrower discloses that a household member contributes to the overall income but is not listed on the promissory note. This form is specifically designed for situations where a non-borrower, defined as an individual residing in the borrower's home and contributing financially, needs to provide consent for a credit evaluation. Completing this form is essential for lenders to assess the full financial picture of the household, as it allows them to obtain a consumer credit report for the non-borrower. Each non-borrower must sign the form, affirming their contribution to the household income and understanding that their credit history will be reviewed as part of the loan modification evaluation. If multiple non-borrowers are involved, copies of the form can be used to ensure all necessary parties provide their authorization. It is important to note that additional documentation may be required, highlighting the need for clear communication and thorough preparation during this process.
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To Be Completed if 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
Note: Updated or additional documents may be required. Copies of this form may be used if you have more than one
Please have the
The undersigned
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
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 |
SIGNATURE |
_____________________________________ |
________________________________________ |
RELATIONSHIP TO BORROWER |
DATE |
Form Specifications
| Fact Name | Description |
|---|---|
| Purpose of the Form | This form is used when a borrower or co-borrower discloses income from a household member who is not on the promissory note. It helps lenders assess the total household income for loan modification purposes. |
| Definition of Non-Borrower | A non-borrower is an individual who lives in the borrower's home and contributes to the household income but is not legally responsible for the mortgage loan. |
| Credit Authorization Requirement | Each non-borrower must complete and sign the Credit Authorization Form to allow the lender to obtain their consumer credit report as part of the evaluation process. |
| Use of Multiple Forms | If there are multiple non-borrowers contributing to the household income, copies of the form can be used for each individual to ensure all contributions are documented. |
| Governing Law | The use of this form and the authorization to obtain a credit report is governed by the Fair Credit Reporting Act, which sets guidelines for how consumer credit information can be accessed and used. |
Non Borrower Credit Authorization: Usage Guidelines
Once the Non-Borrower Credit Authorization form is completed, it will be submitted as part of the evaluation process for a loan modification. This form is essential for verifying the contribution of a non-borrower to the household income. It is important to ensure that all information is accurate and that the form is signed where required.
- Obtain the Non-Borrower Credit Authorization form.
- Fill in the loan number at the top of the form.
- In the section labeled "PROPERTY ADDRESS," provide the complete address of the property in question.
- Confirm that the non-borrower is an occupant of the property by writing their name in the designated area.
- Indicate that the non-borrower contributes to the total household income by checking the appropriate box or providing a brief statement.
- State the entity that is evaluating the mortgage loan for a modification by filling in the blank with the correct name.
- Authorize the review of the consumer credit report by filling in the name of the entity or its designated agent in the specified section.
- Ensure that the non-borrower signs the form where indicated.
- Provide the relationship of the non-borrower to the borrower in the designated space.
- Enter the date of signing in the appropriate section.
- Fill in the non-borrower’s Social Security number in the format provided.
Your Questions, Answered
What is the Non Borrower Credit Authorization form?
The Non Borrower Credit Authorization form is a document required when a borrower or co-borrower discloses that a household member, who is not on the mortgage loan, contributes to the total household income. This form allows the lender to obtain a consumer credit report for the non-borrower to evaluate the mortgage loan for potential modification.
Who qualifies as a non-borrower?
A non-borrower is defined as an individual who lives in the same household as the borrower and contributes to the household income but is not legally responsible for the mortgage. This could include family members, roommates, or anyone else who shares financial responsibilities in the home.
Why is the Non Borrower Credit Authorization form necessary?
This form is necessary because it allows the lender to access the non-borrower's credit history. This information is crucial for assessing the overall financial situation of the household, especially when evaluating a loan modification request. It ensures that all income contributors are considered in the decision-making process.
What information is required on the form?
The form requires several pieces of information, including the non-borrower's name, relationship to the borrower, property address, and social security number. Additionally, the non-borrower must sign the form to authorize the lender to obtain their credit report.
Can multiple non-borrowers use the same form?
No, each non-borrower must complete their own Non Borrower Credit Authorization form. However, copies of the form can be used if there are multiple non-borrowers contributing to the household income. Each individual must provide their own details and signature for the authorization to be valid.
What happens after the form is submitted?
Once the Non Borrower Credit Authorization form is submitted, the lender will use the information to obtain the non-borrower's credit report. This report will be reviewed as part of the evaluation process for the mortgage loan modification. Additional documentation may be requested if necessary.
Is there a deadline for submitting the form?
Common mistakes
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Failing to provide the loan number at the top of the form. This number is crucial for processing your request.
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Not including the property address. Ensure the address is complete and accurate to avoid delays.
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Leaving the signature line blank. The non-borrower must sign the form to validate the authorization.
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Overlooking the relationship to the borrower section. Clearly state how the non-borrower is related to the borrower.
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Not providing the date of signing. This information is essential for record-keeping and processing timelines.
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Using an incorrect Social Security Number. Double-check this number for accuracy to prevent issues with credit checks.
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Failing to understand the implications of authorizing a credit report. The non-borrower should be aware of what this entails.
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Not using additional copies of the form if there are multiple non-borrowers. Each non-borrower needs their own signed form.
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Neglecting to read the fine print. Ensure all terms and conditions are understood before signing.
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Submitting the form without confirming that all required fields are filled out completely. Incomplete forms can lead to delays or rejections.
Documents used along the form
When completing the Non Borrower Credit Authorization form, several other documents may be required to ensure a thorough evaluation of the mortgage loan modification request. Below is a list of commonly used forms and documents that accompany the authorization process.
- Hardship Affidavit: This document outlines the borrower's financial difficulties and explains why they are seeking a loan modification. It provides context for the request and details any changes in financial circumstances.
- Uniform Borrower Assistance Form: A standardized form that collects essential information about the borrower’s financial situation, including income, expenses, and any hardships faced. It is often required for loan modification applications.
- Income Verification Documents: These may include pay stubs, tax returns, or bank statements that confirm the income of both the borrower and non-borrowers contributing to the household income.
- Property Valuation Report: An assessment of the property’s current market value. This report helps lenders determine the loan-to-value ratio and assess the potential for a loan modification.
- Credit Report: A detailed report of the borrower’s and non-borrower’s credit history. This document is often obtained through the Credit Authorization form and is crucial for evaluating creditworthiness.
- Loan Modification Agreement: A formal document outlining the terms of the modified loan. This agreement will specify the new payment terms and any changes to the loan structure.
- Proof of Residency: Documents such as utility bills or lease agreements that verify the non-borrower’s residency at the property. This helps establish their contribution to household income.
- Affidavit of Support: A declaration from the non-borrower affirming their financial support to the household. This form may be necessary to clarify the non-borrower’s role in the household income.
- Tax Identification Number (TIN) or Social Security Number (SSN) Form: A form that collects the non-borrower’s TIN or SSN for identification purposes. This information is often necessary for credit checks and tax reporting.
Having these documents ready can streamline the loan modification process. It ensures that all necessary information is available for review, helping to facilitate a quicker and more efficient evaluation.
Similar forms
The Non Borrower Credit Authorization form is important for situations where a household member, not listed on the mortgage, contributes to the household income. Several other documents serve similar purposes in the context of credit authorization and financial evaluation. Below are seven documents that share similarities with the Non Borrower Credit Authorization form:
- Borrower Credit Authorization Form: This form is used by borrowers to authorize lenders to access their credit reports. Like the Non Borrower Credit Authorization, it requires consent for credit evaluation.
- Credit Report Release Form: This document allows an individual to grant permission for a third party to obtain their credit report. It serves a similar function in providing access to credit history.
- Authorization to Release Information Form: This form is utilized to allow lenders or other entities to access personal financial information. It parallels the Non Borrower Credit Authorization in terms of consent for information sharing.
- Loan Modification Request Form: This document is submitted by borrowers seeking changes to their loan terms. It often includes sections for non-borrowers to provide income details, similar to the Non Borrower Credit Authorization.
- Income Verification Form: This form is used to confirm the income of all household members, including non-borrowers. It is essential for evaluating the financial situation of the household.
- Household Income Affidavit: This affidavit outlines the total household income and includes contributions from non-borrowers. It serves a similar purpose in assessing financial eligibility.
- Consumer Credit Report Authorization Form: This document is specifically for granting permission to pull a credit report. It is closely aligned with the Non Borrower Credit Authorization in terms of authorizing access to credit information.
Dos and Don'ts
When filling out the Non Borrower Credit Authorization form, it’s important to follow certain guidelines to ensure accuracy and compliance. Here’s a list of what to do and what to avoid.
- Do provide accurate information about the property address.
- Do include your full name as the non-borrower.
- Do sign the form in the designated area.
- Do specify your relationship to the borrower clearly.
- Do fill in the date when you are signing the form.
- Don't leave any sections blank unless instructed.
- Don't provide false information about your income contribution.
- Don't forget to include your Social Security number.
- Don't sign the form without reading it thoroughly.
- Don't use a photocopy of the form if it is not allowed.
Following these steps will help ensure that your Non Borrower Credit Authorization form is completed correctly. If you have questions, reach out for assistance.
Misconceptions
Misconceptions about the Non Borrower Credit Authorization form can lead to confusion and missteps in the loan modification process. The following list addresses seven common misconceptions:
- Only borrowers need to sign the form. Many believe that only individuals listed on the mortgage note need to complete the form. In reality, any non-borrower contributing to household income must also sign.
- The form is optional. Some individuals think that completing the Non Borrower Credit Authorization form is not necessary. However, it is a required step for evaluating a loan modification request.
- Only one form is needed regardless of the number of non-borrowers. It is a common misunderstanding that a single form suffices for all non-borrowers. If there are multiple non-borrowers, each must complete their own form.
- The form only allows for credit checks. While the primary purpose is to authorize credit checks, it also serves to confirm the non-borrower’s contribution to household income.
- Signing the form affects credit scores. There is a belief that signing the authorization will negatively impact a non-borrower's credit score. In fact, the act of signing does not affect credit scores; it merely allows for a credit report to be obtained.
- The information provided is not protected. Some individuals worry that their personal information will be misused. However, the form is designed to comply with the Fair Credit Reporting Act, which provides protections for consumers.
- Non-borrowers cannot influence loan decisions. It is often thought that non-borrowers have no say in the loan process. Their financial contributions are considered significant in evaluating the overall household income, which can influence loan modification outcomes.
Understanding these misconceptions can help individuals navigate the loan modification process more effectively and ensure that all necessary steps are taken.
Key takeaways
When filling out and using the Non Borrower Credit Authorization form, it is important to consider the following key points:
- The form is necessary when a borrower or co-borrower reports income from a household member who is not on the mortgage note.
- A non-borrower is defined as someone living in the home who contributes to the household income but is not responsible for the mortgage loan.
- Each non-borrower must complete and sign the form for it to be valid.
- Multiple copies of the form can be used if there is more than one non-borrower contributing to the household income.
- Additional documents may be requested during the evaluation process, so be prepared to provide further information if needed.