Inter Vivos Revocable Trust (Living Trust) Checklist Underwriting Review
1. Is subject the borrower’s primary residence or second home? 2. Is subject a single-family residence? 3. Is subject a 1-unit property? 4. The document establishing the trust indicates the following: a) Trust was established during the lifetime of the trustor (creator of trust AKA settlor/grantor/donor). Yes Yes Yes No No No N/A
If no, Trust is ineligible:
Yes Yes Yes Yes Yes
No No No No No N/A
b) Trustor has the ability to revoke the trust at any time during the borrower’s lifetime. c) At least one borrower meets all of the following criteria: I. Is a primary beneficiary of the trust or trustor. II. Is a trustee (unless an institutional trustee has been appointed) III. Occupies the property as either primary residence or second home.
d) Trust document names one or more trustees to hold legal title to and manage the property. The trustee is the borrower or institution who customarily performs trust functions (and is authorized to act as trustee under the laws of the state). e) f) The trust has the authority to borrow money and purchase, construct or encumber real property. There are no unusual risk or impairment of lender’s rights (such as distribution, for specified amounts from other than the net income).
Yes Yes Yes Yes
No No No No N/A
5. Written consent by the beneficiary for the mortgage loan has been obtained if written consent is required by the trust documents.
Luxury Mortgage Corp Underwriting Review completed by:________________________ Date:_____________
FORM 1100
Page 134 09-15-05