This checklist is for reviewing Fannie Mae inter vivos revocable trusts. See Fannie Mae’s Selling Guide for the most updated version of these requirements, as they are subject to revision. An online version of Fannie Mae’s Selling Guide, part B2-2-05, “Inter Vivos Revocable Trusts” (10/31/2017), is currently accessible at: https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru
-Closing/Subpart-B2-Eligibility/Chapter-B2-2-Borrower-Eligibility/1032996281/B2-2-05
-Inter-Vivos-Revocable-Trusts-10-31-2017.htm.
Inter Vivos Revocable Trust Review Checklist
Date:
Loan Number:
Property:
Trust Name:
Settlor Name(s):
Trustee Name(s):
Fannie Mae Inter Vivos Revocable Trust Requirements
A certification of trust that meets all of the following requirements and the requirements of Texas Property Code section 114.086 is acceptable.
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Requirement |
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No |
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1. The trust is established by one or more natural persons, solely or jointly. |
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2. The trust was created during Settlor’s lifetime. |
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3. The trust becomes effective during Settlor’s lifetime. |
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4. The trust can be amended or revoked by Settlor at any time, for any reason, during Settlor’s lifetime. |
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5. The primary beneficiary of the trust must be the individual(s) establishing the trust. If the trust is established jointly, there may be more than one primary beneficiary as long as the income or assets of at least one of the individuals establishing the trust will be used to qualify for the mortgage. |
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6. The trustee(s) must be either (a) the individual establishing the trust (or at least one of the individuals, if there are two or more) or (b) an institutional trustee that customarily performs trust functions in and is authorized to act as trustee under the laws of the applicable state. |
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7. The trustee(s) must have the power to mortgage the security property for the purpose of securing a loan to the individual(s) who are the borrower(s) under the mortgage or deed-of-trust note. |
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