I’m doing a loan that is in the name of a Trust, for example Joe Doe, Trustee of Joe Doe Revocable Trust and also Joe Doe, individually.
Does Joe Doe, as trustee sign the Closing Disclosure and also Joe Doe as individually.
The other question I have is, does it matter what order the borrowers are listed on the documents?
When a trust is used in connection with a mortgage per Fannie Mae requirements;
“Each individual establishing the trust (inter-vivos) whose credit is used to qualify for the mortgage must acknowledge all of the terms and covenants in the security instrument and any necessary rider, and must agree to be bound thereby, placing his or her signature after a statement of acknowledgement on documents”
Based on this requirement, I would say that yes, Joe Doe and any other “natural” person who established the trust would have to sign the closing disclosure in alignment with the Trust. If Joe Doe is also a Borrower he would have to sign for himself as well.
As far as the order of borrowers being listed on on the mortgage loan it would be the Trustor, but the legal title of the deed is put into the Trust’s name. As always with legal documents please make sure you follow the financial institution’s attorneys advice.
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