In which situation must a husband and wife both sign under the introductory paragraph of the Form 1003?

The correct answer focuses on situations involving joint credit applications. When a loan application is submitted for joint credit, both spouses must sign under the introductory paragraph of Form 1003 to indicate their agreement to the terms and to ensure both parties are legally responsible for the debt. This requirement is rooted in the principle that both individuals are jointly liable for the mortgage obligation, thus protecting the lender's interests as well.

In contrast, if an application is in the name of only one spouse, only that individual would be required to sign, as the other spouse would not have a direct role in the credit agreement unless they are explicitly included in the application for joint credit. Therefore, the necessity for both signatures is strictly tied to the nature of the credit being sought. When the application is for joint credit, both spouses must affirm their commitment and understanding, reflecting the shared responsibility for repayment.