Mortgages Analyzed
 
Borrower's Signature Authorization

What is Borrower's Signature Authorization?

Borrower's Signature Authorization

Borrower Signature Authorization is a form signed by the applicant authorizing the lender to obtain and verify information and documentation from third parties that is needed in connection with the application for mortgage loan. Through the use of this form, the lender does not have to request signature on every form that it sends to third parties for collecting information about the applicant. This form can be used as an attachment to any form that requires applicant’s signature. For example, the lender can request verification of deposit (Form 1006) by sending along the Borrower's Signature Authorization form. The lender will not have to get the borrower's signature on the Form 1006.

The lender should obtain the authorization from each loan applicant.

Source :www.MortgagesAnalyzed.com

Contents of Borrower's Signature Authorization

The form may contain three parts:

  1. Identifying Information: This part contains information to identify the applicant, the lender, and the subject property.
  2. Authorization: Includes the authorization terms and the signature of each borrower.
  3. Privacy Act Statement: This is required when the information is retained in a system of record maintained by a Government agency. If the loan will be sold to a government agency such as HUD or VA, then this statement would be required. The Privacy Act Notice is provided as per 5 USC §552a (e) (3).
Source :www.MortgagesAnalyzed.com
 

Document Summary

 
Borrower's Signature Authorization
Purpose
Borrower Signature Authorization is a document signed by the applicant authorizing the lender to obtain and verify information and documentation from third parties that is needed in connection with the application for mortgage loan.
Use in Mortgages
Borrower Signature Authorization Form gives the lender blanket authorization to request the information it needs to evaluate the mortgage application.
Other Names
  • Borrower's Signature Authorization
  • Customer's Signature Authorization
  • Signature Authorization
Type
Form
Provided By
Lender prepares the form and the loan applicants sign it
Provided To
Completed form is provided to the lender
Notarization Required
No
Signed By
Loan applicants
Life Cycle Stage
Origination
Recordkeeping
None by regulation. We recommend keeping it in the loan file for as long as the loan is outstanding.
Model Form
None
Applicable Laws
None
Source :www.MortgagesAnalyzed.com

Updated: Aug 22, 2013

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Form signed by the applicant authorizing the lender to obtain and verify information and documentation
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