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Can Loan Officers give Legal Advise During Loan Process?

My lender advised me to exclude my wife (we are separated) from the title of my loan. I don't have a attorney but I am wondering if this is more legal advise than banking consumer advise. Can anyone shed some light? by kjohnson148 from Cocoa Beach, Florida. Nov 19th 2018 Reply


David R Youngs - Assistant Vice President (DavidRYoungs)
#65 ranked lender in Minnesota - 64 contributions

One aspect of a mortgage loan process is coordinating with the Title Company how you both want to hold title to the property. So this would be within the LO's realm of guidance. The Loan Officer may be offering a suggestion on how to hold this, in order to provide you with the best chance of a loan approval from underwriting. The person may also be trying to help you to avoid potential title challenges you may face later on, as a result of your separation. However the LO cannot insist that you do this a specific way, it is ultimately your decision. In addition the Title Company is the one that actually sets up the Title Deed and has that recorded with the County. They usually have an attorney on staff that can provide direct legal advice if you would like to discuss the pros and cons of each option in more detail. I hope this helps!

Nov 20th 2018
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Dave Skow (daveskow)
#16 ranked lender in Washington - 234 contributions

no - legal advice shouldn't be given by a loan office anytime .....the advice you might have received might be more of feedback as to explaining options as to how a new loan might be possible ....fyi : most lenders will require a formal recorded separation agreement in order to do a new loan and if you have this in place , the agreement should hopefully address how the property and vesting should be handled as you complete separation ...consult with your sep attorney for any more in depth questions

Nov 21st 2018
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Joe Metzler (JoeMetzler)
#2 ranked lender in Minnesota - 3,908 contributions

No Loan Officer, Real Estate Agent, or Title person should be giving "legal advice" of any kind, or advising you to do one specific option or another. Good Loan Officers will always explain the differences of your options, in this case, going into title, then you tell us how you want to do it. With that said, I am not familiar with Florida rules, and they may be different than I am used to. But here in Minnesota, you could go into "title" by yourself, but it wouldn't really matter one way or the other, as she would still have a legal right to the property. Remember that until you are divorced, you are married. Therefore, at least in Minnesota, even if you didn't put her in title at the time of closing, she has a legal marital right to the property. For loans in MN, WI, and SD, visit me at www.JoeMetzler.com. NMLS 274132.

Nov 26th 2018
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,703 contributions

More info needed.. did the initial interview with your loan officer go like this.. "hey loan officer, how do I buy a home if i'm currently separated from my spouse?" If you loan officer advised you on how to qualify for the loan on your own.. then that's not legal advice.. that's your loan officer doing his job and helping you buy a home without using your separated spouse ( assuming that was your goal)... But in general, loan offices, real estate agents and title company personal are not attorney's.. any advice given to you will most likely be within the scope of their duties in advising you on the process and what you are signing and obligating yourself to.. which is different than legal advise. . I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Nov 27th 2018
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