SNMC CLOSING POLICY

S N M C P a g e | 1 October 25, 2016

Inter Vivos Revocable Trusts

Each trustee and individual establishing an inter vivos revocable trust whose income and assets are used

to qualify for the mortgage must separately execute the Note and any necessary addendum. They must

also execute the security instrument and any applicable rider.

The following documentation is required:

• An attorney’s opinion letter from the borrower’s attorney verifying all of the following:

o The trust was validly created and is duly existing under applicable law,

o The trust is revocable,

o The borrower is the settlor of the trust and the beneficiary of the trust,

o The trust assets may be used as collateral for a loan,

o The trustee is:

� Duly qualified under applicable law to serve as trustee,

� Is the borrower,

� Is the settlor,

� Is fully authorized under the trust documents and applicable law to pledge or

otherwise encumber the trust assets

• A complete copy of the trust documents certified by the borrower to be accurate, OR a copy of

the abstract of summary for jurisdictions that require a lender to review and rely on an abstract

summary of trust documents instead of the trust agreements.

o Exception for Trust Certification Authorized States

� In lieu of the attorney’s opinion letter and copies of the trust documents, the

trust certification is acceptable (see chart below for states that allow a trust

cert).

� The trust certification must be completed by the title company and include all of

the documentation required in the attorney’s opinion letter.

States that Allow a Trust Certification in lieu of Attorney’s Opinion Letter

Alabama

District of

Columbia

Michigan

New

Hampshire

Pennsylvania

Utah

Arizona

Idaho

Minnesota

New Mexico

South Carolina

Vermont

Arkansas

Iowa

Missouri

North Carolina

South Dakota

Virginia

California

Kansas

Nebraska

Ohio

Tennessee

Washington

Delaware

Maine

Nevada

Oregon

Texas

Wyoming

Other title and closing requirements:

• The title to the property must be vested in the trustee on behalf of the trust (or such other

customary practices),

• Title binder may not contain any exceptions to coverage based on the mortgaged property being

held by the living trust,

• The Note must be executed individually by the settlor and by the trustee on behalf of the trust,

SNMC CLOSING POLICY

S N M C P a g e | 2 October 25, 2016

• The Mortgage or Deed of Trust is executed by the trustee on behalf of the trust. The trust rider

must be used with the mortgage or Deed of Trust.

• The date of the Trust must be reflected on the Note as part of the description below the

Trustee’s signature (see signature requirements section below).

Signature Requirements

The borrower is to sign separately as individual, trustee and settlor. The borrower should sign their

name only without additional verbiage (see example below):

John A. Borrower John A. Borrower, Individually and as Trustee of the John A. Borrower Revocable Trust

Agreement dated January 6, 2008 for benefit of John A. Borrower