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#2247860 - 01/20/21 02:15 PM Trusts
CMSIngenue Offline
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Credit extended to trusts established for tax or estate planning purposes or to land trusts, as described in comment 3(a)-10, is considered to be extended to a natural person for purposes of the definition of consumer.

All consumers who have the right to rescind must receive a copy of the CD at least 3 business days before consummation. If the property vests in a trust, we require all trustees of the trust to sign the mortgage note.

Would the CD list the Trust as a Borrower on page 1 of the CD? Or would the CD list the trustees as a Borrower on page 1 of the CD?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2247867 - 01/20/21 03:42 PM Re: Trusts CMSIngenue
rlcarey Online
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rlcarey
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Posts: 79,637
Galveston, TX
If the trust is the borrower, then the CD would list the trust as the borrower and copies would be given to the trustees.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2247889 - 01/20/21 07:27 PM Re: Trusts CMSIngenue
CMSIngenue Offline
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Thank You. So if the borrower is vesting in a Trust but the borrower is solely on the credit application, then a CD would not be issued to the Trust?

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#2247893 - 01/20/21 07:42 PM Re: Trusts CMSIngenue
CMSIngenue Offline
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For example: Borrower is a credit applicant. Borrower will vest in a trust. All trustees of the trust are required to sign the mortgage note. There are 3 trustees of the trust. In this situation, is the individual listed on the credit application the sole factor in determining whether credit is extended to the trust?

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#2247896 - 01/20/21 08:01 PM Re: Trusts CMSIngenue
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,637
Galveston, TX
I am an applicant on the loan application.

My friend Joe has a piece of property that I am going to pledge as collateral.

I am a borrower and I get a CD.

Joe signs the deed of trust or mortgage depending on your State and is not a borrower and does not get a CD.

A trust works the same way - you need to figure out who is the actual borrower and who owns the property. If no one applied for the loan on behalf of the trust, they are not a borrower.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2247907 - 01/20/21 11:13 PM Re: Trusts CMSIngenue
CMSIngenue Offline
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Joined: Jan 2013
Posts: 150
Thank You

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