WTF is the Borrowers’ Certification & Authorization form?
When you apply for a mortgage, you will be asked to sign this form. It will come with the initial disclosures required to be signed before the lender can work on your home loan request.
When you sign this form, you agree to two things and provide permission for another.
The first is that you certify that all information you have given — on the application, and in subsequent paperwork — is true and complete.
Secondly, you are authoring the release of credit, employment, and other information as needed to process and close your home loan. You are saying to your employer, that it’s OK to share your employment information — start date, position/title, historical pay, year to date pay and likelihood of continued employment — with the lender. You are saying to your insurance company that it’s OK to share the coverage details, premium amounts, and deductibles with the lender. This form is sent along with a request to any involved third party providing your authorization to request and receive the information.
This speeds along the verification of the information contained in the mortgage application and allows the lender’s underwriter to approve your loan request.
Lastly, you are providing permission to your lender to sell your loan to another company should they choose to do so. Loans are often sold to investors by mortgage companies after the closing. This provides the lender with the money to lend to another person who wants a home loan. It also provides investors with a reliable stream of income as you make your monthly payments.
