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Trust - TRID ?

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Question: 
A Trust owns a single family home which is currently rented. The owner of the Trust is deceased, so it is no longer an inter-vivos trust. A bank makes a loan to the Trust at a 14 year fixed rate, (5.99%) secured by the property. The Trustees are not personal signers, only the Trust is obligated. The loan to value is approximately 60%. Do TRID rules apply to this situation? Is a LE and/or CLoD required? What about ATR rules? The interest rate seems exorbitant.
Answer: 

If the trust is no longer a grantor trust (because of the death of the grantor), and the trust is the only borrower, the organizational credit exemption under Regulation Z §1026.3(a) would exempt the loan from all aspects of the regulation, including the TRID, and ATR requirements.

First published on 07/03/2016

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