Why would a lender have home owners sign a document that takes the wife off the property, leaving her exposed to losing the house

Virginia isn't a community property state and if she is not on the loan the lender may have an overlay that requires her not to be on title

Some lenders require that anyone on title be part of the loan application and assuming the wife didn't meet the overall requirements to help the file get approved, they suggested removing her from title. I'm sure with the proper approval, the wife can be added back on to the Deed after closing. I'd be speaking to a real estate attorney on this matter for the proper information. Good Luck!