Thread Options
#672864 - 01/26/07 12:43 AM Trusts and occupancy, income and GMI reporting
Geoz Offline
100 Club
Joined: Apr 2003
Posts: 148
Colorado
I've looked at way too many loans this week. I'd so appreciate some feedback:

The note is in the name of Bob and Jean Customer Living Trust. Bob and Jean sign the note as trustees. The loan is secured by Bob and Jean's home which is also owned by the Living Trust. Bob and Jean's income is the basis of the credit decision.

Occupancy: Code 2, non-owner.
GMI: not applicable since the Trust is not a natural person.
Income: NA, the borrower is not a natural person.
HOEPA and rate spread info: NA-loan not subject to Reg. Z

Right?

Return to Top
HMDA

   
HMDA Academy
#672915 - 01/26/07 01:57 PM Re: Trusts and occupancy, income and GMI reporting Geoz
Reed Offline
Diamond Poster
Reed
Joined: Sep 2005
Posts: 1,251
West Coast
HOEPA 2, rate spread N/A. Besides that I agree with you.

Return to Top
#673001 - 01/26/07 03:16 PM Re: Trusts and occupancy, income and GMI reporting Reed
hmdagal Offline
Power Poster
hmdagal
Joined: Dec 2002
Posts: 3,812
Many secondary market investors would also require that
Bob and Jean sign the note as additional borrowers. If that is the case, you would need to report the GMI of one them for the co-borrower.

Return to Top
#673019 - 01/26/07 03:34 PM Re: Trusts and occupancy, income and GMI reporting hmdagal
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,285
Good point, hmdagal. Our counsel recommended that in situations where the husband/wife are trustees and we're mortgaging their homestead we have them sign as individuals too. Virtually all of these trusts are revokable which means that the property could be taken out of the trust at any time during the life of the loan. Could get messy if the loan goes into default.

And remember, if they sign as individuals, Respa does apply too.

Return to Top