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#2244016 - 10/14/20 03:58 PM Demographic info collection-Trusts
Oly78 Offline
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Joined: Aug 2006
Posts: 131
We do not collect DI info on Trusts as applicants/borrowers, since a Trust is an entity. However, our LOS’s default language for the borrower is worded in a way that makes me wonder whether we should collect it. For example, if the property is held in the name of the John Doe Revocable Trust, and the Trust is the applicant/borrower, our Note and Mortgage will print like this: “John Doe Individually, and as Trustee of the John Doe Revocable Trust.” The part that is tripping me up is the word “individually.” Does that mean that even though the title to the property is held in the name of the trust, do we still have to collect DI on John Doe, because of the word “individually?” Thank you!

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Lending Compliance
#2244021 - 10/14/20 05:06 PM Re: Demographic info collection-Trusts Oly78
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,243
Galveston, TX
I am not aware of any lenders that will make a loan to a revocable trust without individuals also being on the loan - who do you plan to collect from if the revocable trust is actually revoked?
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#2244029 - 10/14/20 06:06 PM Re: Demographic info collection-Trusts Oly78
Oly78 Offline
100 Club
Joined: Aug 2006
Posts: 131
I do understand that part and have no issue with it. My question pertains strictly to the collection of DI, and whether the language "individually and as trustee...." means that we should be collecting DI on loans to Trusts. Currently we treat Trusts as entities and do not collect DI.

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