Fannie Mae Trust Agreement
The property must be transferred in the name of the trust or in the name of the agent in the name of trust. The lender must keep a copy of the fiduciary documents requested by title insurance in each credit file when deciding on title insurance coverage. The loan must contain a full copy of the trust agreement or trust certification, as described below. If changes have been made to the position of trust that designate new parties or other changes, they must be documented and copies must be included in the loan file. A lender who grants a loan on a revocable inter vivo trust as mortgagor, is responsible for: BY SIGNING BELOW, who signed, settlor (s) of the__ [Full Legal Name of Trust] – Trust and Trust Instrument dated – all terms and tabs of this security instrument and accept. Jane Mac___ (Seal) Trusted. Fannie Mae only accepts people as creditor borrowers, unless otherwise stated in the sales guide. In addition, Fannie Mae considers that real estate in which no borrower has a stake in the property is generally considered ineligible assets. However, to take into account the use of inter vivo trusts as an instrument of estate planning, Fannie Mae offers an exception for real estate held by revocable inter vivo trusts created by creditor borrowers. A loan that has a revocable in vivo trust as Mortgagor must be delivered with the Special Function Code 168 (in addition to all other specific feature codes that may also apply to the transaction). Only information about the person (s) who establishes the revocable intervivos trust fund whose loan is used for the loan should be provided at the time of delivery. B of the loan, such as the borrower`s name and social security number.
The name of the revocable inter vivo trust position cannot be included in the credit delivery data. Title insurance does not provide exceptions for the agent (s) who owns ownership of the property of the guarantee or trust. Powers cannot be used in the execution of trust. Trusted certifications are acceptable as long as they contain enough information to establish that the position of trust meets all of PennyMac`s requirements. A Trust certification can be used instead of the full trust agreement in the following countries: Note: If the trust includes far more assets than the subject property, some borrowers may be reluctant to provide a full copy of a trust. In these cases, the borrower must provide all parts of the trust, as requested by the title company, which clearly identify: before delivery to PennyMac, the lender must ensure that the title company has verified and approved the trust agreement or certification of the trust. In the event of delivery to PennyMac, the property must not contain property exceptions and offer unlimited title protection without exception to the trust. All types of accommodation and occupancy are eligible. In the case of a property that is the borrower`s primary residence, at least one person who certifies the trust institution must certify the quality of security and sign the loan file.
The title held in trust does not diminish Fannie Mae`s rights as a creditor, including the right to full ownership of the property that should be conferred on Fannie Mae if enforcement proceedings are to be initiated to remedy a default under the terms of the mortgage.