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?

If the trust is the borrower, then the CD would list the trust as the borrower and copies would be given to the trustees.

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?

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?

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.

Thank You