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#2262064 - 11/03/21 05:47 PM Borrower changing to Trust at time of CloD
Banker K, CRCM Offline
Gold Star
Joined: Jan 2010
Posts: 293
Oklahoma
Our individual borrower just informed the lender he wants his TRID home purchase loan to be in his TRUST's name instead of his individual name. I suggested keeping the loan in the individual's name and just having the Trust grant the collateral (sign the mortgage), but that is not what the customer wants to do, and we are appeasing the customer.

So...how do we handle this change?
1. Proceed with the change in borrower name at the time of the Closing Disclosure this week?; or
2. Shut this file down as an ANA WD, then have the customer start a new application with the Trust as the borrower (and closing will be delayed)?

Many thanks!
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Compliance - A Painful Addiction

All comments are mine & should not be taken as legal advice.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2262065 - 11/03/21 06:13 PM Re: Borrower changing to Trust at time of CloD Banker K, CRCM
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
If this is a revocable trust, you are going to make the loan to the trust without the joinder of the settlors? Who are you going to collect from when they revoke the trust? What the borrower wants is not relevant when it comes to making a loan on which you can collect on without jumping through a bunch of legal hoops.

From an application and TRID perspective, you could do it either way.
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#2262066 - 11/03/21 06:39 PM Re: Borrower changing to Trust at time of CloD Banker K, CRCM
Banker K, CRCM Offline
Gold Star
Joined: Jan 2010
Posts: 293
Oklahoma
My understanding is they are making the individual a guarantor on the loan.
_________________________
Compliance - A Painful Addiction

All comments are mine & should not be taken as legal advice.

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