Final answer:
A loan signer, also known as a cosigner, is a person or firm who legally pledges to repay some or all of the money on a loan if the original borrower does not. The loan signer's role in the loan package is to provide additional assurance to the lender that the loan will be repaid.
Step-by-step explanation:
A loan signer, also known as a cosigner, is a person or firm who legally pledges to repay some or all of the money on a loan if the original borrower does not. In the loan package, the loan signer's role is to provide additional assurance to the lender that the loan will be repaid. They act as a guarantor for the loan, which reduces the lender's risk.
For example, let's say a student wants to take out a student loan but has limited credit history or income. The lender may require the student to have a loan signer, such as a parent, who has a better credit score and income. This loan signer's information and signature will be included in the loan package to provide additional security to the lender.
The loan signer's responsibilities include ensuring that the loan payments are made on time and in full if the original borrower is unable to do so. It's important for the loan signer to fully understand their obligations before agreeing to be a cosigner.