Trust TABLE OF CONTENTS. Thank you for choosing New Penn to be your lending partner.

Transcription

1 Policy Thank you for choosing Nw Pnn to b your lnding partnr. W hop th following information will kick start your ability to work with us succssfully! If you hav any qustions, plas don t hsitat to call your Account Excutiv. TABLE OF CONTENTS Ovrviw Prliminary Rviw Itms Documnt Rviw Procss Non- Intrvivos Estats NwRz Tr ust Submittal Chcklist CA Crtification s (intr vivos or living trusts) Gnral Ovrviw All trust rqusts must b approvd in writing by th NwRz Comp lianc Group (NwRzcomplianc@nwrz.com) as arly as practical, but should b prior to submission for undrwriting to avoid customr c losing dlays. Closing Managr must b notifid prior to closing documnt prp aration. Thr ar additional spcific documnts and borrowr nam information that nds to b on th forms that th Closing Manag r will assist closr with. Occupancy allowd, unlss othrwis rstrictd pr th loan product dscription or invstor: o Primary Rsidnc (1-4 units) allowd o Scond Hom (1 unit only) allowd o Invstmnt Proprty allowd Rmoval From It is unaccptabl to instruct th borrowr to dd th subjct proprt y out of a into his/hr prsonal nam for th purposs of obtaining financing and avoiding NwRz approval. Pag 1 of 8 v

2 If th borrowr wants to rmov th proprty from th trust in ordr t o facilitat closing, w will rquir a signd writtn statmnt in th borro wr s handwriting to th ffct that (i) thy mad th dcision to dd th proprty out of th trust of thir own accord, (ii) thy wr not advisd to tak this action by any party to th loan transaction (lndr, brokr, s crow/sttlmnt agnt), (iii) this action is not intndd to Pag 2 of 8 v

3 Policy influnc th lnding procss in any way, and (iv) thy undrstand th lgal implications of this dcision Prliminary Rviw Itms Rviw titl commitmnt or bindr rflcting at last a 12- month titl history and, if a purchas transaction, th purchas contract. Titl history must includ transfr dat, loan amount, buyr's and sllr's nams for all titl transfrs within th past 12 months. An a ppraisal is NOT an accptabl sourc of titl history. Excptions to dding out of th trust and allowing closing in th individ ual nams or th 12 month titl history will b considrd on a cas- by- cas basis. Submit th rviw through th Complianc group and clarly stat in th commnts th rqust for an xcption and why th rqust is bing mad. Rviw of Must Confirm th Following Six Elmnts of a : 1. Th borrowr or borrowrs must b crator(s) of th trust. Th crators of th trust ar usually calld th Grantor, Sttlor or Tru stor. 2. Th borrowr(s) must b th trust(s) of th trust (or thr must b an approvd institutional trust). 3. Th trust must b rvocabl. 4. Th borrowr(s) must b th primary bnficiaris of th trust. 5. Th trust(s) must hav th authority to borrow mony and pldg th trust proprty as scurity. 6. Th trust must hav bn cratd during th liftim of th borrowr(s); it may not hav bn cratd by a will Documnt Rviw Procss Submit th itms listd on th blow Submittal Chcklist (Titl Com mitmnt, Any Existing Crtification, Agrmnt, All Am ndmnts,) to th NwRz Complianc group. o In th vnt NwRz Complianc Group fls th trust docu mntation providd is ambiguous or has concrns intrprtin g th documntation, an Attorny Opinion Lttr from th b orrowr s attorny will b rquird o In th vnt a trust crtification is not availabl for a stat, Form A must b utilizd o California Excption For Proprtis in California a trust crtification Pag 3 of 8 v

4 Policy compltd by th borrowr or th borrowr s attorny is accptabl in liu of th full trust documnts. Th titl co mmitmnt is still rquird Pag 4 of 8 v

5 Policy CA Crtification Should any portion of th trust crtificat b found i naccurat or in disagrmnt with th titl rport, this xcption cannot b applid and th complt trust documnts must b pro vidd This xcption to trust documntation is ONLY for proprtis locatd in California. NwRz Complianc Group will crat a draft Final Crtification and rturn to rqustor for borrowr rviw and approval. Provid NEWREZ Complianc Group with borrowr approval ( mail prfrabl) of draft Final Crtification. Complianc Group will mail Approval to submittr and upload Final Crtification to XD oc Th Final Crtification must b xcutd at closing Crtifications by Stat NEWREZ Crtification Form A o AK, AL, CA, CO, CT, DE, DC, HI, IA, ID, IL, KS, KY, LA, ME, MD, MA, MS, MO, MT, NE, NH, NJ, NM, NY, NC, NV, OK, PA, RI, SC, VA, WV, WI, WY NEWREZ Crtification Form B o AR, AZ, FL, IN, GA, IN, ND, OH, TX, UT, WA) NEWREZ Crtification - Michigan NEWREZ Crtification - Minnsota NEWREZ Crtification - Orgon NEWREZ Crtification - Tnnss NEWREZ Crtification - Vrmont Non- Intrvivos Estats Blind s Blind trusts ar not ligibl for financing. A blind trust is an arrangmnt whr financial holdings of a prs on ar placd in th control of a fiduciary, typically to avoid a conflict of i ntrst. Thrfor, somon othr than th borrowr has control ovr t h trust assts Lif Estats Lif stats ar not ligibl for financing. Pag 5 of 8 v

6 Pag 6 of 8 v Policy A l i f s t a t i s a n s t a t w h o s d u r a t i o n i s limitd to th lif of th party holding it, or som othr prson, upon who s dath th right rvrts to th grantor or his hirs.

7 Policy Land s Proprtis hld by Land s ar not ligibl for financing. A Land is whn an organization holds proprty or whn on party holds ownrships of ral proprty for th bnfit of anothr party. Pag 7 of 8 v

8 Policy NEWREZ Submittal Chcklist Th following must b prsntd to th Complianc group for trust approval: Complianc Rviw: q Titl Commitmnt q Any Existing Crtification q Entir Agrmnt q All Amndmnts to th Th trust is signd, notarizd, and datd by all applicabl partis. q You hav a complt copy of th xcutd Crtificat of. q Th individual(s) stablishing th trust (Grantor/Sttlor ) is/ar aliv at th tim of loan application, and loan closing/funding. q Th trust has bn stablishd in writing by a natural prson and is to b ffctiv during thir liftim. (Th trust is not cratd in a will or codicil.) q Th Grantor(s) has th right to rvok or altr th trust. q Th primary bnficiary of th trust is th Grantor(s) (th intrst and principal of th trust stat is applid for th ir bnfit) and th mortgag has bn undrwrittn as if th Grantor (or at last on of th Grantors) is th borrow r (or th co- borrowr, if thr ar additional individuals whos incom or assts will b usd to qualify for th mortgag.) q Th loan applicant(s) ar both th Grantor(s) and th trust (or on of th co- trusts). q Th trusts must includ at last on of th Grantors, if thr ar two or mor, or an institutional trust that customarily prforms trust functions (i.., a bank). q Th trust(s) has th powr to mortgag and borrow mony and sign th scurity instrumnt. q Th trust dos not contain an unusual risk or impairmnt of th lndr s rights (i.., distributions rquird to b mad in spcifid amounts from othr than nt incom). q Th titl must b vstd: in th nam of on trust; jointly in th trust (s) on th intr vivos rvocabl trust and in th nam (s) of an individual borrowr (s); or in th trust(s) nam if mor than on intr vivos rvocabl trust q Th titl policy assurs full protction to th lndr, its succssors, and/or assigns, and must stat that titl to th p roprty is vstd in th trust(s) of th trust. (It must not list any xcptions arising from th trust ownrship of th proprty.) q Th Grantor/Sttlor occupis th proprty as a primary rsidnc Pag 8 of 8 v

9 Policy CERTIFICATION OF TRUST (California Prliminary) STATE OF ) : SS COUNTY OF ) bing first duly sworn upon oath, dposs and says as follows, pursuant to th laws of th Stat of : (1) I/w am/ar all of th currntly acting (s), duly appointd and srving in accordanc with th trms and provisions of that crtain known as th datd (hrinaftr rfrrd to as ). (2) Th is in xistnc and th trust instrumnt was cratd on (Month / dat / yar). (3) Th was stablishd undr th laws of th Stat of (4) Th idntity of th Sttlors/or(s) and ach currntly acting of th ar st forth blow: A. or(s) Nam(s): B. (s) Nam(s): C. (s) Addrss(s): (5) Th abov namd trust(s) is/ar fully mpowrd to act for said and is/ar proprly xrci sing th trust's authority undr this. No othr trust or othr individual or ntity is rquird t o xcut any documnt for th (6) Th is (_) Rvocabl or ( _ ) Irrvocabl (slct on). If rvocabl, th nam of th prson(s) holding th powr to rvok it is/ar: (7) Th powr of th trust(s) includs: (a) Th powrs to sll, convy, mortgag and xchang [_] Ys [_] No (b) Th powr to borrow mony and ncumbr th trust proprty with a mortgag or dd of trust [_] Ys [_] No (8) (Provid a rspons to paragraph 8A or 8B, not both) A. Thr is only on trust rquird to act in ordr to xrcis th numratd powrs of th [_] Ys [_] No (if th rspons is ys, go to Paragraph 9)

10 B. If thr is mor than on trust, [ ] all, or [ ] lss than all (slct on) ar rquird to act in ordr to xrcis th numratd powrs of th. (if th rspons is all, go to Paragraph 9). If lss than all, th numbr of s rquird to act in ordr to xrcis th numratd powrs of th is (9) Th idntifying numbr of th is:. This numbr is: ( _ ) th social scurity numbr of or ( _ ) th tax idntification numbr of th (slct on). (10) Th mannr in which titl to trust assts should b takn is: (11) Th trust has not bn rvokd, modifid, or amndd in any mannr which would caus th rprsnt ations containd in th crtification of trust to b incorrct. To th bst of our knowldg, thr ar no claims, c hallngs of any kind, or caus of action allgd, which contst or qustion th validity of th or th trust 's authority to act for th. (12) This Crtification is bing signd by all of th currntly acting trusts of th trust. (13) Th Bnficiaris [_] ar [_] ar not rquird to consnt or dirct this transaction. If rquird to dirct or consnt, thy ar all signing this crtification. (14) Th (s) undrstand and acknowldg that th rcipint of this Crtification of may mak a good faith rqust of th (s) to furnish copis of thos xcrpts from th original, and amndmnt s thrto, that dsignat th (s) and confr upon th (s) th Powr to act in th pnding transact ion. Intnding to b bound hrby, and acknowldging that th titl insuranc company is rlying on ths affirm ations and confirmations, and furthr confirming that th copy of trust providd to th titl insuranc compa ny is accurat and will b through closing, w hav st our hands and sals. DATED: : Witnss: : Witnss: printd nam: printd nam: printd nam: printd nam:

11 Policy For Approvd Clints: Contact PENN or mail Intrstd in bcoming approvd? Contact us at or visit our Gt Approvd Pag All loans ar subjct to crdit and proprty approval. Programs, rats, trms and conditions ar subjct to chang without notic. Othr rstrictions apply. NwRz, LLC NMLS# Equal Housing Lndr.