As far as the car "loan", this is just a simple piece of paper for the mortgage lenders - they often ask for something similar when family gives you some of the down on a house, they want paper to prove that you don't owe that money. Anyone dumb enough to lend money to your H is probably dumb enough to sign a paper saying it was a "gift", so no worries there.

What exactly is the other wording that H objects to? (And, good job asking for a copy of the communication from his lawyer objecting to it - I bet it doesn't exist. Heck, maybe his lawyer doesn't even exist.)