Signature Requirements When the Borrower is Individual and Inter Vivos Revocable Trust is Mortgagor

When one or more inter vivos revocable trusts eligible under Section Inter Vivos Revocable Trusts hold title to the mortgaged property (alone or with another eligible inter vivos revocable trust), only an individual who is both grantor and primary beneficiary of one of the trusts may be a borrower and must sign the note in their individual capacity. In addition, each inter vivos revocable trust, acting through its trustee(s), is required to sign the note in connection with its grant of the mortgage. The inter vivos revocable trust may sign the note without recourse so that its liability for repayment of the note is limited to its interest in the mortgaged property. Such non-recourse status does not affect or otherwise limit the personal liability of the individual establishing the inter vivos revocable trust under the note and is in addition to the limitations on personal liability for certain trustees of inter vivos revocable trusts in these Underwriting Guidelines.

When an individual borrower has a direct ownership interest in the property, no other person (including a trust) is required to sign the note (except other borrowers).