Topic: Civil Unions
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If a borrower lists a “married” status on the Form 10-03 (Fannie Mae Uniform Residential Loan Application), but they are in fact not married (or in a civil union but not a marriage), should we revise the 10-03?
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We believe it would be appropriate to revise the customer’s Form 10-03 to ensure that it is accurate. As stated on the form, it is designed to be completed “with the Lender’s assistance.” And, if the bank is making warranties to Fannie Mae as to the truthfulness and completeness of the loan information, it may…
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What body of law governs the marital status on the Form 10-03 (Fannie Mae Uniform Residential Loan Application)? Federal law? State law? If a same sex couple was married in Massachusetts, should that be reflected on the 10-03 application? Would that marriage be recognized in Illinois?
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Because Form 10-03 questions focus on the ownership of the mortgaged property, we believe that it would be appropriate to enter an applicant’s marital status under Illinois law. If an applicant is a party to a civil union, it would be most accurate to list the applicant as “married” on the Form 10-03, as Illinois…
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In the event that two joint loan applicants have separate assets, can we ask them if they are married to each other (as opposed to married to other spouses)?
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We believe that the bank can inquire as to whether applicants are married to each other (or in a civil union together), provided that the bank needs to know about the applicants’ marital status in order to secure the loan. Generally, the bank would need to know about an applicant’s marital status if the application…
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Do you have any guidance as to a mortgage loan where the borrowers have entered into a civil union in Michigan?
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We would recommend that bank counsel (or the title company’s counsel) review the Illinois civil union law, titled the Illinois Religious Freedom Protection and Civil Union Act. The civil union law defines a “party to a civil union” as someone who has entered into a civil union before a county clerk. 750 ILCS 75/30. (Civil…
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Can we use a form to ask applicants for secured credit whether they are a party to a civil union, given that Regulation B allows us only to ask whether the applicant is married, unmarried, or separated?
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We finally heard back from a CFPB attorney about whether banks are permitted to ask about the civil union status of loan applicants (provided that the application is for secured or joint credit). The CFPB’s informal guidance is that this is a permitted question, if it is asked on a separate form from any questions…
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What documents can we ask a loan applicant who is a party to a civil union to sign?
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In response to your question, we asked a CFPB attorney about whether banks are permitted to ask about the civil union status of loan applicants (provided that the application is for secured or joint credit). She said that the CFPB’s informal guidance is that this is a permitted question, if it is asked on a…
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On mortgage applications, how are married same sex couples categorized under Illinois law?
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In Illinois, same-sex couples may not marry, but any couple (including same-sex couples) may enter into a civil union. However, a civil union is not the strict equivalent of a marriage. Under Illinois’s civil union law, every reference to “spouse” in any Illinois statute is now deemed to include a “party to a civil union.”…
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In filling out a Form 1003 mortgage application, if the loan applicants are in a civil union, should we list them as unmarried?
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It would be most accurate to list the legal relationship as a “domestic partnership,” as a civil union is not the strict equivalent of a marriage. Under Illinois’s civil union law, every reference to “spouse” in any Illinois statute is now deemed to include a “party to a civil union.” 750 ILCS 75/10. A “party…
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We received a bulletin indicating that there has been a change in Illinois law regarding non-titled spouses. What is that change, and are non-titled spouses required to sign homestead waivers and notices of the right of rescission?
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There have not been any amendments to the Illinois law governing homestead rights since 2005, so the change in Illinois indicated likely refers to the new civil union law, which became effective June 1, 2011. Under that law, every reference to “spouse” in any Illinois statute is now deemed to include a “party to a…