When a loan application is completed on a loan originator's website, what must the loan originator obtain?

When a loan application is completed on a loan originator's website, obtaining signatures from the borrower is essential for several reasons. Signatures are a crucial part of the lending process because they signify the borrower's consent and acknowledgment of the terms and conditions outlined in the loan application and any associated documents. This legal validation is necessary to ensure that the lender has the borrower's agreement to proceed with the loan process.

Signatures also help protect both the lender and the borrower. They ensure that the borrower understands their obligations and that the lender has a compliant and enforceable agreement. In the digital age, electronic signatures have become widely accepted and can facilitate the process by allowing borrowers to sign documents remotely, streamlining the application process considerably.

While items such as proof of income, a credit report, or a processing fee are typically important in the overall loan approval process, they do not hold the same weight in terms of consent and legal agreement as the signature does. Without proper signatures, the loan application lacks the necessary authority to move forward, making this requirement paramount.